Anderton Jim: Meat Board Amendment Bill — First Reading 
Anderton Jim: Meat Board Amendment Bill — First Reading 
[Volume:630;Page:2361] 
Hon JIM ANDERTON (Minister of Agriculture) 
: 
 I move  
That the Meat Board Amendment Bill be now read a first time. 
 At the appropriate time I intend to move that the bill be referred to the Primary Production Committee for consideration and that the committee present its final report on or before 27 July. 
The Meat Board Amendment Bill clarifies the provisions within the Meat Board Act 2004 regarding the allocation of access to meat export quota markets. The bill will uphold the original objectives of the Meat Board Act 2004. But by removing potential ambiguity in the original drafting the legislative framework will ensure that the Meat Board can continue its longstanding practice of allocating quota to producers of export-qualifying meat who are registered meat exporters regardless of whether they currently export meat products. 
The bill also clarifies the fee collection powers of the board. Once again this is to remove a potential ambiguity to make it clear that the board may charge fees to applicants for quota whether or not they have exported meat. I wish to make it clear that the bill does not modify the original objectives or intent of the Meat Board Act 2004 or the policy of the Meat Board in regard to the allocation of meat quotas or the charging of fees. The sole aim of the bill is to remove potential ambiguity and thereby improve business certainty for all market participants and for the Meat Board which is the administrator of the meat quota allocation. 
The bill then is technical in nature and limited in scope. In these circumstances I anticipate—hopefully anyway—that the committee’s consideration will be of shorter duration than usual. 
Under the Meat Board Act 2004 the Meat Board allocates monitors and manages all tariff quotas for meat of New Zealand origin. These quota markets in the European Union and the United States enable New Zealand meat products to enter those markets on preferential terms with low or zero tariffs. Our meat industries are very much dependent on export markets. Around 83 percent of lamb production and 87 percent of beef production is exported. Approximately half of all New Zealand’s meat exports go to the European Union and the United States tariff quota markets. I must say to the House that when I was speaking to the National Farmers Union in the UK recently I found that farmers in Britain were a bit gobsmacked to hear those figures and find out how export-oriented our agricultural sector is. 
Quota access is of significant value to the industry obviously and to the economy. The viability of New Zealand’s meat industry depends to a significant extent on sustainable access to these preferred markets. Since at least 1997 the Meat Board has allocated quota on the premise that meat industry participants who produce export-qualifying meat and hold an export registration certificate are eligible to receive quota—whether or not they are currently exporting meat products. Export registration certification is easy to obtain and does not limit the number or type of exporters. The amendment bill will reaffirm the Meat Board’s approach to quota allocation which will ensure that the financial benefits associated with New Zealand’s preferential access to quota markets will potentially be widely available to industry members. That is the point of the original Act which this amendment bill will clarify. It includes some 30000 sheep beef and dairy farmers as well as those involved in the meat-processing and exporting sectors of the meat industry. 
Although the New Zealand public may not fully recognise the economic and social importance of our land-based industries the Government—and I am sure many members of this House—see the primary sector as critical to both our economic and social well-being. New Zealand primary industries collectively provide two-thirds of our export goods. Primary industries therefore provide the foreign exchange to pay for imported goods and to maintain our living standards. Put simply New Zealand’s social and economic well-being is dependent upon the success of our primary industries. There will be no First World health education environmental or even infrastructural systems unless those sectors of industry are successful in New Zealand’s interests. 
Over the last 15 years productivity growth in agriculture forestry and related industries has outperformed the rest of our economy. Again that is a fact I do not think many New Zealanders fully appreciate. Although the New Zealand economy recorded relatively modest average productivity growth of around 1.3 percent during that period our primary sectors averaged productivity growth of 2.8 percent which is more than 100 percent of the national average. Other manufacturing industries achieved just 1.1 percent. Those are remarkably successful figures. 
The meat industry makes a significant contribution to the New Zealand economy in terms of its contribution to the gross domestic product employment and export earnings. From 1986 to 2002 the contribution of agribusiness to New Zealand’s economic performance rose from 14.2 percent of GDP to 16.5 percent. So rather than those industries being a set of sunset industries they are in effect a set of sunrise industries that we should be very grateful to have on our books. In the year ended June 2005 $4.6 billion worth of meat products were exported which accounted for around 15 percent of the total value of merchandised exports from New Zealand. 
The New Zealand meat industry is a high-performing and very productive sector by international standards. It has continuously improved its productivity over the last few decades. The industry has also achieved significant product development over the last 30 years. In 1971 90 percent of export lambs were sent overseas in carcass form; today it is less than 5 percent. Many of us will remember times when freezing chambers around New Zealand were full of frozen lamb carcasses which were then rendered down for pet food or fertiliser. 
The profitability of sheep and beef farms over the last 5 years has been very good. We need to build on those successes if we are to confront the challenges our economy faces. Some of those challenges of course are the need to harness our creativity the need to join global networks and work together to maximise our potential the need to be customer focused and the need to adapt to the rapid changes of the global economy. To achieve those things we need a competitive domestic meat industry. By clarifying the quota allocation and fees provisions in the Act of 2004 we will promote business certainty in the meat industry and thus maintain the meat industry’s substantial and positive contribution to the well-being of all New Zealanders. I commend the bill to the House.