Peters Winston: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumePeters Winston: Oral Questions — Questions to Ministers[Sitting date: 02 April 2015. Volume:704;Page:2875. Text is incorporated into the Bound Volume.]4.Rt Hon WINSTON PETERS (Leader—NZ First)to the Minister for Primary Industries: Does he believe the Dairy Industry Restructuring Amendment Act 2012 has achieved “a stable permanent capital base for the Co-operative secures our future and will support progress with our strategy to grow volumes and value”; if so why?Hon NATHAN GUY (Minister for Primary Industries):Yes; the Dairy Industry Restructuring Amendment Act 2012 set out to ensure that the original Dairy Industry Restructuring Act was fit for purpose and that the contestability of milk supply provides incentives for the New Zealand dairy industry to reach its full potential. That said we are legislatively required to review the Dairy Industry Restructuring Amendment Act. The review of the legislation will consider the state of competition in dairy markets in New Zealand and whether the pro-competitive elements of the Dairy Industry Restructuring Amendment Act are still required. This process begins in June this year.Rt Hon Winston Peters: Is the Minister concerned that a low milk price instead of generating a higher dividend for farmers which was the theory behind that legislation has instead seen Fonterra cut its dividend forecast?Hon NATHAN GUY: Right now we are in a very volatile global market. I think the member needs to also remember that last year we had a record payout of $8.40. Right now we are seeing a very volatile global market for a range of reasons and they are that the world is basically awash with milk we have got milk currently that is displaced from the Russia ban from the EU looking for a new home and of course we have got some stockpiling in China. So all of those things mean that right now we are in a very volatile dairy market.Rt Hon Winston Peters: What can he say to Waikato farmer Dave Robertson who said the other day: “I don’t believe what they are saying anymore … The company is not owned by farmers it’s totally lost touch.”?Hon NATHAN GUY: I would disagree with those comments. That farmer has a process to talk through that at the top table. There is a Fonterra Shareholders’ Council representing farmers. They have a direct link to the board of directors. The board of directors are currently on a roadshow addressing all of these concerns with farmers. And I am hearing a wide range of views that farmers are expressing to the board of directors and that is the appropriate mechanism for them to do that.Rt Hon Winston Peters: How does he respond to Waikato University professor of agribusiness Jacqueline Rowarth saying that farmers “are questioning whether Fonterra is actually operating as a co-operative anymore and that’s dire. That is abysmal.”?Hon NATHAN GUY: That is a question that should be addressed to Fonterra.Hon Damien O’Connor: Does the Minister consider that the Dairy Industry Restructuring Amendment Act passed by himself has indeed achieved its goal and that of his Prime Minister which is that it is ultimately to set up tension so that Fonterra will be floated on the stock exchange as the Prime Minister stated was his preferred option?Hon NATHAN GUY: I refute the allegation from the member. That is completely wrong.