Gallagher Martin: New Zealand-China Free Trade Agreement Bill — Second Reading 
Gallagher Martin: New Zealand-China Free Trade Agreement Bill — Second Reading 
[Volume:648;Page:17267] 
MARTIN GALLAGHER (Labour—Hamilton West) 
: 
 As the chair of the Foreign Affairs Defence and Trade Committee it obviously gives me great pleasure to comment on our report back and to acknowledge the previous two speakers. Along with my colleague the deputy chair of the committee Dr Wayne Mapp I take this opportunity to thank all the members of the committee for their very hard work. In particular I acknowledge Tim Groser’s contribution. In my view he has given a very thought-provoking and comprehensive contribution to the House this afternoon. In terms of the writing of the report and some of the research in some of his work—and I am sure Dr Mapp will agree with me—he gave a very very good contribution obviously acknowledging his own experience and the role he has played for this country over a number of years. 
As we are a very broadly based committee I also acknowledge—notwithstanding that he is the author of a minority report—our Green Party member Keith Locke. He made a very good contribution and obviously in terms of this democratic Parliament this democratic House of Representatives this afternoon he will clearly in his contribution give alternatives—give voice to some alternative viewpoints—which of course the committee heard. 
I acknowledge that a number of people had significant misgivings about this agreement. I certainly acknowledge the very comprehensive contribution of Dr Jane Kelsey just to name but one. On the other hand I acknowledge the very favourable responses that have been made publicly and through the committee including one from the chairman of Fonterra Henry van der Heyden: “This is a good positive step for New Zealand and a good positive step for dairying so it has got to be good for Fonterra.” and also I think good for New Zealand. In that context I think the previous speaker alluded to the growing numbers of the middle class in China in terms of their consumption. Of course members can guess what products they will increasingly be consuming as the per capita income in a whole section of Chinese society goes up. 
In terms of the cross-section of Maoridom I also acknowledge a public comment by Ngai Tahu general manager Geoff Hipkins who stated that the tribe’s fishing arm exports more than $100 million worth of live lobsters to China annually and also takes a large amount of paua product. He said that in a country with 1.3 billion people the deal has “amazing potential. The sky’s the limit really. To me it’s a land of opportunity.” Zespri chairman Craig Greenlees made again what was a public comment not necessarily in evidence to the committee but it certainly reinforces some of the submissions we had to the committee: “China’s agreement to reduce the 20 percent tariff on kiwifruit to zero over the course of the next nine years is a very significant achievement—one that will be worth many millions of dollars to the New Zealand kiwifruit industry over time.” 
Meat and Wool New Zealand chairman Mike Petersen said: “This is a good outcome for New Zealand sheep and beef farmers as it will immediately provide preferential access for New Zealand meat products in China compared to our competitors plus it will let us build on the current trade.” Seafood Industry Council general manager of trade Alistair McFarlane said in a public quote: “China has become an important provider of seafood processing services to New Zealand seafood companies. Overall it’s definitely good news.” I will give a final quote in terms of quoting from prominent people in the business community. Air New Zealand chief executive Rob Fyfe said: “Having spent the last three days here with leaders from across the New Zealand business community the resounding feedback I’ve had was that people were thrilled with the opportunities created by this deal.” 
As a member of Parliament I commend the leadership of the Prime Minister and of the Minister of Trade—overseas trade—the Hon Phil Goff. Again I do not think we should underestimate the huge opportunities that this particular agreement in potential has for New Zealand notwithstanding the fact that there will be challenges for us as well in this context. 
To conclude I will quote a couple of paragraphs from the select committee report. Obviously I and others will have an opportunity to make a further contribution during the Committee of the whole House and in the third reading and I certainly anticipate doing so in some detail. I urge members of Parliament to read the select committee’s report back to the House although I am sure they have already done so because obviously they would not be sitting here participating in this debate if they had not. The document is for public circulation and is available on the web. I urge people to read it. 
I think the select committee has given a very comprehensive report and obviously it has acknowledged a minority viewpoint as well: “We have considered the alternative views submitted to us and concluded that the China-New Zealand FTA is of long-term strategic benefit to New Zealand. Lifting New Zealand’s export performance is among the most important economic objectives facing the country. New Zealand has historically suffered more than any other developed country from lack of assured access to markets for our traditional primary-based exports because of severe agriculture market access barriers and subsidisation. China is the second emerging economic super-power and within four to five decades may become the largest consumer market in the world. Through this FTA China has essentially offered New Zealand the opportunity of all but free access for our goods exports in around a decade. As the recent Fonterra commercial announcement shows substantial benefits have started to flow immediately as companies in both countries anticipate the provisions of the agreement coming into force.” 
I further quote from the committee’s report: “This is a historic opportunity for New Zealand and should be taken without equivocation. It also demands a coordinated response from New Zealand Inc. to fully exploit the advantages of the agreement but such an examination was outside the scope of our inquiry.” I have nothing further to add at this point except to thank members of the committee to thank all the submitters irrespective of their views to acknowledge that there was a cross-section of views and to say that we report back both the New Zealand - China Free Trade Agreement Bill and the free-trade agreement itself between the Government of New Zealand and the Government of the People’s Republic of China and the majority of the committee supports the progress of this bill. Thank you Mr Assistant Speaker.