Guy NathanPart 2 Amendments to regulationsHon NATHAN GUY (National—Ōtaki): Thank you very much. We've had a very good debate on Part 1. The National Party is disappointed that our amendments didn't get across the line but fortunately—and I want to acknowledge the Minister in the chair Damien O'Connor and thank him for accepting the review clause that's now just been inserted. That will mean that the Minister will get official advice on that section that we've been particularly concerned about to do with the warrantless powers. He will now be given a report in 12 months after the bill is enacted and then he will report that information within three months of that review period. That will give us some comfort on this side of the House that it is working as indeed intended by the Government.Speaking in particular to Part 2 which is the lesser part—it's about the amendments to regulations—and in particular around the animal movements between locations other than National Animal Identification and Tracing (NAIT) locations. This is really a tidy-up. When I was speaking about this earlier on today and indeed last night I posed a few questions. We were fortunate in the Primary Production Committee this morning that we had Operational Solutions for Primary Industries (OSPRI) and NAIT officials in front of us so I was able to ask the question and the question was Is the existing NAIT system—i.e. the software the hard drive all of the componentry—fit for purpose and can the NAIT system handle that?" As I understand it it's a two-legged stool whereby information needs to be inputted and received. Well from the chief executive we got a cautious "yes" and then from the chair he went on to say that the system needs to be modernised; it's going to require a budget and it's going to take six to 12 months.So while we support Part 2 and have less concerns from Part 1—and those have all been debated and discussed and we would've preferred this not to have occurred in urgency so we could've had the chat with senior officials in front of us—what was interesting to hear from NAIT officials today is that they do have reserves in their account. We didn't have enough time this morning to glean what the quantum is of those reserves but it's very clear to us that the overall NAIT technology—hard drive system software—is going to need to be upgraded. I think it's going to be in the several millions of dollars to do that but having experience as a Minister in this place for nearly 8½ years I know that when officials come and tell you something about IT systems it tends to be "Oh well we think it's going to be in this range but here's a contingency of 10 percent." and indeed it could be 20 percent more than what they forecast.So I guess we want some assurance from the Minister this morning that indeed these regulations are fit for purpose and that the NAIT system and software can handle it because in effect this bill could pass into law within a few hours and we want to ensure that indeed the NAIT system compatibility is up and ready to go for presumably next week or the week after. So it would be good to hear from the Minister about that.I guess the other important point on these amendments to the regulations is there's going to be an infringement and a compliance component of this on farmers who don't apply. Here's another question for the Minister and his officials: what is the likely infringement if farmers don't comply? We've seen this in the past so it would be good to get a bit of a handle on it from the Minister on the second part of these regulations—what are the likely infringement fines that are going to be incorporated with this amended regulation 5(5B)? So if farmers don't adhere to the movement of stock when a farm is not NAIT-registered what is the fine going to be and how long is that going to take in terms of that report going back through the system from OSPRI across to the Ministry for Primary Industries? I acknowledge that in the last wee while there's been more compliance and that is a good thing.So we support Part 2. We've got a couple of questions that I've pitched to the Minister this morning and it would be useful to hear those answers."