Auchinvole Chris: Dairy Industry Restructuring (Raw Milk Pricing Methods) Bill — First Reading 
Auchinvole Chris: Dairy Industry Restructuring (Raw Milk Pricing Methods) Bill — First Reading 
[Volume:658;Page:7591] 
CHRIS AUCHINVOLE (National—West Coast - Tasman) 
: 
 I would like to acknowledge some of the speakers who have gone before. I could not quite follow the logic of the Green Party speaker and his assertions—[ 
Interruption 
] Well I was keen to try—over the cooperative model. 
Just for the record the export dairy industry was initially founded in the 1800s by an immigrant to Taranaki from China a Mr Chew Chong. He bought fungus from Taranaki farmers which was sent overseas for bird’s nest soup and that sort of thing. On occasions he also bought dairy products and in particular salted butter. He was a speculative individual and an enterprising person. He sent a barrel of salted butter to the UK and had it immediately sent back again to New Zealand to check the quality. It returned in perfect condition and that started the beginning of export products to the UK from the dairy industry. However unfortunately for Mr Chong as his business grew—I think he was at Eltham—the industry developed into some proprietary production companies and some cooperatives a referendum was held and the industry determined to establish itself as a cooperative industry. That has been repeated I think twice since then. It is not an accident that dairy farmers work in a cooperative. It was a deliberate considered intention. 
Also price management is not new to the dairy industry. Indeed when I was involved in that particular industry I well recall there were limits. I think my colleagues here will be able to help me out. I think any price for a new season could be only 10 percent above the price of the previous season and it could be only 5 percent below the price of the previous season. [ 
Interruption 
] An equalisator was not necessarily in economic terms the best way to run an industry because what happened I think it was in the 1980s was that the Dairy Board carried a full year’s value of cash equivalent so that it could pay farmers out on that basis. But I would have thought Labour would be singing more joyfully about the whole thing even though it has been very good in supporting it because Labour Governments of the past have certainly been fundamental to the development and growth of the dairy industry and Labour should be able to share in the parliamentary pride. I think it was 1936 when the Labour Government responded to industry calls for assistance and introduced a minimum price for milkfat of—I do not know someone might be able to help me again—I think it was a shilling a pound. Again it provided stability. It provided certainty. The Dairy Industry Restructuring (Raw Milk Pricing Methods) Amendment Bill does the same thing. We are enacting procedures that have a historical part to play in the industry. The dairy industry is a very very strong part of the New Zealand economy. 
Jo Goodhew 
: Say it again. 
CHRIS AUCHINVOLE 
: I certainly will say it again. The dairy industry is a very very strong part of the New Zealand economy. 
Shane Ardern 
: How strong? 
CHRIS AUCHINVOLE 
: It is extraordinarily strong. 
The National-led Government is committed to delivering growth to ensure prosperity for all New Zealanders. Part of this commitment is ensuring a fair and competitive business environment. The bill provides that for the farming and dairy sectors. The interesting thing is—and I am sure my colleagues on the other side of the House will forgive me and indulge me— 
Hon Darren Hughes 
: We’re always forgiving the member! 
CHRIS AUCHINVOLE 
: I am sure they will indulge me if I point out that I have not heard any comments from that side of the House on the real value of independent cooperatives operating within New Zealand. The second-largest dairy company in New Zealand is the Westland Cooperative Dairy Co. It declined to join with Fonterra and it has had a very successful time since the amalgamation and it will continue to do so. It works in harmony with the rest of the industry. 
Shane Ardern 
: Plus the local member. 
CHRIS AUCHINVOLE 
: Thank you. It would be wrong of me as the local member not to mention the excellent efforts made by Westland and by Tatua Co-operative Dairy Co. which I think would be the third-largest company in New Zealand. It has been known for a very very long time for the way in which it has developed. I think it started with frozen creams and aerosol creams. There is certainly no lack of initiative no lack of enterprise and no lack of good management within the New Zealand dairy industry. 
I will just finish by acknowledging the contribution that you Mr Deputy Speaker have made to the dairy industry in a previous career. It was a time that I shared with you at the Dairy Board and I would like to acknowledge the time we had together. [ 
Interruption 
] No it was not a load of bull. I was involved not only in artificial breeding but also in dairy products themselves. Thank you. 
Bill read a first time.