Smith Nick: Questions for Oral Answer — Questions to Ministers 
Smith Nick: Questions for Oral Answer — Questions to Ministers 
[Volume:625;Page:20586] 
12.  
Hon Dr NICK SMITH (National—Nelson) 
 to the  
Minister of Labour 
: What action has he taken and when in response to the 2 December 2004 report on employment conditions in the fishing industry that found that “conditions amount to little more than ‘sweatshop’ ones” that crew were subject to physical abuse including being hit with an open hand or fish pieces of wood and even hit on the hands with a hammer and that “if anyone stands against this abuse it has been known for them to be taken to a private cabin and beaten”? 
Hon PAUL SWAIN (Minister of Labour) 
: 
 The report on employment conditions in the fishing industry focused primarily on whether two companies were meeting their obligations under the Minimum Wage Act and the Holidays Act. Since 2 December 2004 the findings of the investigation have been put to both companies for comment. In an appendix to the report anonymous allegations were made as the member has outlined. The allegations of mistreatment on charter boats are serious and have been referred to the police the Maritime Safety Authority and the Human Rights Commission. I will be raising the matter of the report and related issues at a meeting with the industry shortly. 
Hon Dr Nick Smith 
: How can the Minister say that he treated seriously the allegations of gross abuse when he received the report on 2 December sat on it for 5½ months and referred it to the police the Maritime Safety Authority and the Human Rights Commission only a few days ago; and how can they possibly now take any action when both the fishing-boat and the crew are long gone? 
Hon PAUL SWAIN 
: Firstly the findings of the report were referred to the two companies for comment before its public release as a matter of justice. I thought the member would have understood that. 
Hon Dr Nick Smith 
: What about natural justice for the workers? 
Hon PAUL SWAIN 
: Shh shh! Secondly as far as these allegations are concerned the allegations of violence on board foreign vessels were made in confidence. The workers were advised that they would be able to make a formal complaint if they wanted to pursue any matter further and that the Department of Labour inspectorate would help. The workers asked that the labour inspector not forward the allegations unless they came back to the labour inspector. They did not do so. However since the report has been made public the allegations have been referred to the appropriate authorities and as I said I am taking this matter up with the industry shortly. 
Rod Donald 
: Why does the Labour-led Government continue to allow floating sweatshops to fish in New Zealand’s exclusive economic zone and why does it not instead require all companies fishing in our territory whatever their ownership to pay New Zealand wages and provide New Zealand working conditions so that there will still be a future for New Zealanders in this industry instead of more and more foreign crews being exploited under the nose of the Minister’s Government and more and more Kiwis getting out as their wages drop and their jobs are exported? 
Hon PAUL SWAIN 
: There are a lot of issues there but firstly the member is right: people are required to provide appropriate conditions and pay appropriate wages according to New Zealand law. That is “New Zealandisation”. Essentially that was what that report was about—to try to look at whether minimum wages primarily were being paid and the impact on immigration policy. The reality is that both those companies are now working to make sure that their practices do meet the common standard. The charter issue that the member is now referring to is the issue that was raised as part of the report around those allegations. The appropriate authority is involved but as well the industry itself is concerned to hear about this and it has some responsibility to ensure that those practices are stamped out of the industry. 
Paul Adams 
: Will the Minister legislate to make the New Zealand companies that contract foreign charter fishing vessels liable for any breaches of New Zealand employment and minimum wage laws that occur on those vessels; if not why not; if he will will he accept an offer from United Future to support the urgent passage of such legislation during the next sitting of Parliament to put an immediate stop to this appalling slavery in New Zealand waters? 
Hon PAUL SWAIN 
: Those charter company boats are required to obey New Zealand law. Essentially that was what the report was about—focusing in the first instance as a first step on looking at those that were involved whether New Zealand crew on New Zealand boats or foreign crew on New Zealand boats. This issue has opened up the whole issue of the conditions within that industry. As I said there are some issues around allegations that have been made—anonymous allegations—and they are being pursued by the authorities. But in the end as far as “New Zealandisation” is concerned the fishing industry whether chartered or local needs to follow New Zealand employment law. 
Lesley Soper 
: What action is being taken involving the two companies at the centre of the report following concerns about payment of the minimum wage? 
Hon PAUL SWAIN 
: As a result of the report Sealord’s has agreed to work with the department and the New Zealand Fishing Industry Guild to change its pay practice to ensure compliance with the law and Amaltal has agreed to go to the Employment Relations Authority to resolve its issue. In addition the Government is working with the fishing industry to develop a longer-term strategy to address labour and skills issues to ensure that this important industry continues to contribute to the New Zealand economy. 
Hon Dr Nick Smith 
: Could the Minister explain to the House where the natural justice is for the workers who were working in what was described by his own department as a sweatshop who were beaten with pieces of wood and a hammer while he sat on this report for 5½ months; what does he think the founders of his party would think about a Labour Minister treating such issues in this way? 
Hon PAUL SWAIN 
: The Labour founders hopefully would be very proud of the Government actually starting to address issues that have been around in the industry for a very very long time. But as I said those allegations were made anonymously. The workers making the allegations said they did not want those allegations forwarded until they came back to the labour inspector and they did not do that. 
Peter Brown 
: Is the Minister aware that if he had tabled this report on 3 December he might not have been able to do anything much about the physical abuse because that had already occurred but he would have been able to stop dead in the water the 40c per US dollar that is paid to overseas agents from crews’ wages; is the Minister aware of that? 
Hon PAUL SWAIN 
: Well it is fair to say there was discussion about the natural justice issue of giving the companies the opportunity to talk—[ 
Interruption 
] 
Madam SPEAKER 
: I did not hear that comment. Was a comment made that the member takes objection to? 
Hon PAUL SWAIN 
: Not really. A discussion around the issue of natural justice has taken place. But as the member would know foreign agents taking agents’ fees has been a practice within the industry for some considerable time. The only way really that this issue will be addressed is by the industry itself tackling the labour and employment issues and we are working with the industry to make sure that that happens. 
Paul Adams 
: Will the Minister legislate for Ministry of Fisheries or Department of Labour inspectors to be placed on board all foreign charter fishing vessels at the expense of the New Zealand companies that contract those vessels; if not why not; if he will will he accept an offer from United Future to support the urgent passage of such legislation during the next sitting of Parliament to put an immediate stop to this appalling slavery in New Zealand waters? 
Hon PAUL SWAIN 
: The member might recognise that putting inspectors on every single fishing-boat would be highly expensive and not likely to be supported by any Government or future Government. My having said that it is important that we address these issues and in the long term it is important that the industry and the Government work together. [ 
Interruption 
] This is an important industry—one that that member relies on down in his own electorate. It is important that we get the matter sorted out because we need to make sure that employment conditions are such that New Zealanders want to continue to go fishing in New Zealand waters. 
Larry Baldock 
: Does the Minister agree that the argument put forward by some in the fishing industry that they cannot continue to harvest New Zealand’s fish without this appalling reliance upon foreign charter vessels is very similar to the excuses made when William Wilberforce was battling to abolish slavery in the British Empire when it was said that the empire could not survive without depending upon slavery; if he does agree with that will he make a commitment to the House that if these vessels cannot be cleaned up the practice of chartering foreign fishing vessels will be banned in New Zealand? 
Hon PAUL SWAIN 
: I do not quite see the relationship between the two arguments the member has made. But the allegations that have come forward are serious. There are allegations about the industry that have been around for some time. I make a commitment to ensure that the authorities who are working on the matter take action if those allegations are proved. One of the things we can look at for example in the future is the issue of approval for foreign workers to come to New Zealand if those practices are found to be as described and are not improved. 
Hon Dr Nick Smith 
: I seek the leave of the House to table the report to the Minister of Labour and the Associate Minister of Immigration dated 2 December 2004 released last week under the Official Information Act. 
Document by leave laid on the Table of the House.