Carter David: Wool Industry Restructuring Bill — First Reading 
Carter David: Wool Industry Restructuring Bill — First Reading 
[Volume:607;Page:4250] 
Hon DAVID CARTER (NZ National) 
: 
 The National Party supports and welcomes this bill. After 4 long years this Government is finally prepared to do something that will help New Zealand farmers. Producer board deregulation has been a long slow and often tortuous process. Tonight I want to acknowledge the work done by my former colleague the Hon John Luxton who quite courageously started this process in 1997. 
For the sheep farmers of New Zealand this has not been an easy process. Those charged with leading the debate about how we best restructure and present our wool industry have been faced with two quite significant challenges firstly by the vocal statements of various sectors which although small in number were very inclined to push their own interests at the expense of the industry as a whole. Secondly and more important most farmers are notoriously apathetic when it comes to getting themselves involved in issues surrounding the governance of their own industry. I hasten to add that that is understandable for people who have been out working from daylight to dusk to then come in and have to wade through piles of mail and rural papers so that they can at least try to get themselves up to speed with this issue. 
Having said that and as noted by the Minister in his introduction I point out that the sheep farmers of New Zealand have voted overwhelmingly for the dissolution of the New Zealand Wool Board. As an industry sheep farmers have collectively and loudly said that it is time to move forward. Of those eligible to vote 96.9 percent—[ 
Interruption 
]. I tell Ian Ewen-Street that it is pretty hard to know the opinion of those people who do not vote and that is the very point I am making. However 96.9 percent of those who did vote said they are in favour of winding up the current system. 
Hon Dr Michael Cullen 
: Pretty good. 
Hon DAVID CARTER 
: Yes as Dr Cullen interjects that is a fairly good mandate—one that members of this House can appreciate. The bill is only a step in the process that is now being initiated. This legislation will ultimately see the establishment of a completely different governance system. To fulfil the commercial activities of Wools of New Zealand shares will be available to farmers in a company to be known as Wool Equities Ltd or for merino producers in a company to be named Merino Grower Investments Ltd. Further rights to redeemable preference shares will be available. It will be interesting to see the commitment farmers show to the future of their industry in being prepared to accept that opportunity. Having said that it will be incumbent on the prospectus and on the subsequent governance and management of Wool Equities Ltd to make sure that the company lives up to the expectation being created around it so that it maintains grower support. 
I have noted the guillotine that has been given to the Primary Production Committee tonight. However as chair of that committee I give my commitment to the House that I will do everything I can to meet the deadline to get this legislation back into the House by 16 June because I know that sheep farmers are waiting for it. I must say that I have been disappointed that this legislation has not been advanced earlier. It has sat on the Order Paper since last year. I know that will surprise members but that is how long it has been on the Order Paper and it should have been dealt with much earlier. We have approximately 12 weeks to call for submissions to hear those submissions and to tidy up this legislation. However I think it is in our interests to all cooperate to do so. 
I mentioned earlier that this legislation was a step towards further changes. It is ironic that in my own patch of Banks Peninsula at Little River a meeting is occurring as we are speaking tonight between SheepCo very ably chaired by Mike Petersen and Meat New Zealand under the auspices of Geoff Grant. At that meeting they will be presenting what will probably become the next step in this process which is the formation of a body that combines those producing wool with those producing sheepmeats and other meats from New Zealand. That is a very interesting development. I mentioned the meeting at Little River and I want to take the opportunity of noting the work done in a rather different but very constructive way by Mr Steve Edge who is a local identity on Banks Peninsula. He has fought with the system for some time and he can be justly proud of the progress that has been made. He is now using his skills constructively on the board of SheepCo and I believe he is making a very vital contribution in that regard. 
The other point I make in closing is that Wools of New Zealand has started a registration process whereby those farmers who are eligible will have to finish their day’s work and tackle an envelope that looks large chunky and complicated. If farmers bother to take the time to fill it in then they will be eligible for shares in either of the two companies I mentioned earlier. I take this opportunity to implore farmers to do that. It will be of no use at all to come before the select committee and say that they did not know about the process and that they did not meet the deadline which I think I am correct in saying is 2 May. That process does require farmers to make sure they register their eligibility for the distribution of the assets of the old Wool Board. Farmers must take an interest if they want to be involved. 
We are dealing with a very significant industry in New Zealand. Over many generations of New Zealand farmers the Wool Board has served sheep farmers well. It is fair to say that in recent years there have been question marks over the performance and more important the relevance of the Wool Board. I do not think that anybody associated with the governance of the current structures should be criticised. I think that those structures have outgrown where we are today. We are dealing with an industry in which the product usage of wool is far more immense than perhaps many farmers of this country realise. I hope that as we vote now on the process of disestablishing the Wool Board and establish Wool Equities Ltd Merino Grower Investments Ltd and under their auspices companies like Covita and Ovita farmers will realise that there is a significantly greater potential than just the production of fibre. 
I finish by imploring those farmers to open up that big envelope that has sat on their desks for weeks to check whether they are eligible for this process and for the shares in the assets that will become available. They should complete the form quickly and forward it back to Wools of New Zealand so that it can check their eligibility. I am sure they will find that the hour taken to fill in such a registration form is worthwhile.