O'Connor Damien: Dairy Industry Restructuring (New Sunset Provisions) Amendment Bill — In Committee 
O'Connor Damien: Dairy Industry Restructuring (New Sunset Provisions) Amendment Bill — In Committee 
[Volume:672;Page:18523] 
Hon DAMIEN O’CONNOR (Labour) 
: 
 I will take a second call on clause 4 which is the substantive part of the Dairy Industry Restructuring (New Sunset Provisions) Bill. I refer to two aspects and people who are listening to this debate will probably be a bit confused as to why we are going round in circles a bit. It is because there are so many contradictions in this bill. There are so many significant precedents and issues relating to the next set of dairy industry reforms on possible recapitalisation. 
The first aspect is the new definition of “dairy farm” which was referred to by the chairman of the Primary Production Committee. It is a really important definition. Although it is in a little subsection of new section 147 in clause 4 it is absolutely crucial. The questions of who owns a dairy farm who then is entitled to shares in Fonterra and where the milk goes are all absolutely vital components of any change in the dairy industry. The unique aspect about dairying is that it is the biggest industry in the country and it is the only industry substantively fully owned by New Zealanders. The fact that all of the others are owned for the most part by foreigners is a disgrace. The dairy industry remains in New Zealand’s hands so the definition of “dairy farm” and thereby “dairy farmer” will be absolutely essential. Mr Ardern I know understands the significance of this issue. We must take note of the definition that is made here and in any amendments to it we must make sure it serves the purpose we want and demand from legislation which is the protection and betterment of New Zealand. 
The next point relates to the Commerce Commission. The trigger that we talk about—and which we are changing so we are going round and round here—was the market-share thresholds that would have triggered the Commerce Commission and the Minister to investigate the issue of competition in the New Zealand market. They have been pushed out effectively but as we have pushed them out to ensure ongoing supply to domestic producers or other independent processors we have seen at the same time an investigation by the Commerce Commission begin. So this is kind of bizarre: we have the Minister announcing a review and saying that most likely there will be other legislation coming forward and the Commerce Commission undertaking an inquiry—not an investigation yet but an inquiry as to whether it should hold an investigation—into the issue of competition. All those things are going on and we are pushing this bill through which again must in summary be called an academic exercise. 
I go back to the substantive issue of the Commerce Commission asking the question of whether there is competition in the New Zealand market for milk products for milk and for the benefit of consumers. That is the first focus and priority that we have. In terms of competition offshore I am less concerned about that. I think we must have collaboration cooperation and coordination in our offshore sales and marketing. That should occur and for those companies that are independent and think they can go out there and beat up on Fonterra or on one another I say just look over the fence at the meat industry and take some lessons from that. 
In terms of competition for domestic supply and production of milk products there is a question to answer and I urge the Commerce Commission to be brave—it does so every now and then; not very often I have to say—and to front up and undertake an inquiry into the way that the milk is distributed to well-meaning innovative domestic suppliers of milk products. I welcome that because that is what we need here so that consumers are not paying more than they should. 
In terms of the export supply the Minister should be undertaking work. He is indicating that he is looking at it again and I think most of the dairy industry along with Labour is fully supportive of that move. 
I take issue with some of the snide remarks made earlier by members opposite. There is a sound understanding of primary production of its value and of the way it operates within the Labour Party—believe me. In fact it is far better understood than in the National Party. Most of the good legislation in this Parliament has been passed by Labour Governments and I stand on that record. 
Hon Dr Jonathan Coleman 
: Oh come on Damien. 
Hon DAMIEN O’CONNOR 
: Mr Coleman should take some history lessons and he would find that out as well.