8. Question No. 8—AgricultureTODD MULLER (National—Bay of Plenty) to the Minister of AgricultureQuestion No. 8—Agriculture8. TODD MULLER (National—Bay of Plenty) to the Minister of Agriculture: Does he have confidence in New Zealand's agricultural sector?Hon DAMIEN O'CONNOR (Minister of Agriculture): Absolutely.Todd Muller: What actions is the Government taking to improve agricultural business confidence which is at a 14-year low?Hon DAMIEN O'CONNOR: I'm proud to announce that New Zealand farmer confidence has risen for the second quarter in a row. I will acknowledge that farmer confidence did take a hit when we first came into Government but what we have seen is that since more and more farmers started not attending National Party meetings their confidence has lifted consistently particularly in the last two quarters.Todd Muller: What does he say then to the agribusiness sector survey which says the level of agriculture sentiment is minus 80 percent the worst in 14 years?Hon DAMIEN O'CONNOR: I'm not quite sure how that member refers to sentiment. Can I say that for the second straight year there has been an over $7 billion increase in gross exports a 7 percent return. Dairy exports in May this year were up 15 percent. The measures of confidence across the sector are numerous. I acknowledge that there are some sectors that are less confident the dairy sector in particular and anyone who has been listening to the reports from Fonterra would be concerned as are their farmers and it would be fair to say that since 2011 2017-18 Fonterra made many many mistakes both at governance and at senior management level. I have to—SPEAKER: Order! Order! Damien O'Connor will resume his seat. I mean the member's mike goes off when I stand up so he should work out that it's not worth going on afterwards.Todd Muller: What assurances can he give New Zealanders that the wider economy will not be put at risk by the Government's proposed introduction of a suite of new environmental policies when confidence is already so low in a sector that represents 56 percent of this country's exports?Hon DAMIEN O'CONNOR: In 2015 a KPMG report said there are some hard things that need to be done. The previous National Government buried their head in the sand and did nothing. This Government is proud to stand up and say that in the area of animal welfare in the areas of traceability and biosecurity and in the areas of water management and soil protection we are moving to lift the standards and to protect the long-term opportunities for farmers and for this country's economy. That Government did nothing was not prepared to take the hard calls and we are stepping up to the task.Hon James Shaw: What reports has he seen of farmers and agribusinesses moving to both enhance value increase profitability and restore environmental integrity to New Zealand and its brand?Hon DAMIEN O'CONNOR: At virtually every forum I go to around the country talking to farmers and farm leaders they acknowledge that we need to move ahead in these areas of water quality of animal welfare and of traceability because if we don't then the brand value that generations before us have built up in this country to sell quality exports will be undermined. The absence of any leadership and action from the previous National Government means that we have to do—SPEAKER: Order! Order!Todd Muller: Does he agree with the comments made by the Hon Shane Jones that many dairy farmers will find themselves struggling when they have to meet the new Government environmental requirements?Hon DAMIEN O'CONNOR: What I do agree with the Minister the Hon Shane Jones on is that Fonterra shareholders are bitterly disappointed with the performance of their company. From 2011 until 2017 that company has failed—SPEAKER: Order! Order! The member will resume his seat when I stand. The member will now start to address the question asked not another random statement.Hon DAMIEN O'CONNOR: I agree with many things the Hon Shane Jones says and his objective analysis of the dairy industry is one that I respect. He's from a dairy farm; I'm from a dairy farm. We understand what the dairy farmers are concerned about. Yes they want to know what the changing water standards will mean but they're more concerned with the performance of their own cooperative companies and because of the poor leadership—[Speaker gestures member to sit]