Sabin Mike: Dairy Industry Restructuring Amendment Bill — Third Reading 
Text is incorporated into the Bound Volume 
Sabin Mike: Dairy Industry Restructuring Amendment Bill — Third Reading 
[Sitting date: 24 July 2012. Volume:682;Page:3833. Text is incorporated into the Bound Volume.] 
MIKE SABIN (National—Northland) 
: 
 This is a short call but I am pleased to take a call on the third reading of this very very important bill for all New Zealanders the Dairy Industry Restructuring Amendment Bill. The overarching aim of this bill is of course to ensure that New Zealand has the most efficient dairy industry that we can possibly have. The Dairy Industry Restructuring Act was passed some 10 years ago. It was an innovative and quite unique approach for this country and indeed globally that maximises our trade opportunities out there in the big wide economy and also provides the opportunities and competitive balance which are required domestically. It has provided a tremendous platform and we can see that by the level of growth in Fonterra. Dairying is now recognised as earning this country twice what the nearest sector behind it does and I very much want to commend the farmers and Fonterra for the passion and the work that they do for themselves and this nation. It is very important. This bill introduces a new regime related to Fonterra’s milk price setting and of course the proposed capital restructure that we have been discussing today as Trading Among Farmers. 
Interestingly enough earlier this year I met with a number of farmers as the policy proposal rolled forward and it would be fair to say that about 90 percent of them raised significant issues with the following matters. They were around square curving and the ability for competitors to take milk at a time and a price that suited them; the virtual processes and a little bit of smoke and mirrors that has evolved in the 10 or so years since Fonterra was created; and the ability for competing companies to take their 50 million litres of milk ad infinitum. All these matters are being addressed as part of this legislation and I am very happy to say after many conversations and meetings with famers that they are very much satisfied with the direction that the National Government is taking. I will also say that the issue of Trading Among Farmers actually was very much a background issue and continued to be so certainly in my electorate. 
Just very briefly on the farm-gate milk price in essence what we have is a situation where this bill will provide a greater level of transparency. A regulatory agency will release a report to add value to this transparency and I think this is in the interests not only of Fonterra but also of all New Zealanders and competitors and it is about having the appropriate balance. Trading Among Farmers—I only have one comment to make on this and that is that this bill enables it; it does not impose it. The member Steffan Browning said that Fonterra does not have a mandate after the 66 percent vote returned because he believes that not enough people voted. I am not sure how he worked that out—perhaps he has a crystal ball he could share with other members in the House. He also thinks that because it is not a one farmer one vote system it is patently unfair. I would like to point out to that member that in actual fact Fonterra set the terms of its vote. Fonterra certainly advertised and made Fonterra shareholders very much aware that the vote was going on and they participated in that vote. By anyone’s count that is a mandate and I would suggest that the contribution of Mr Browning that Green member is about as much use to this House as teats on a bull. For that reason I am very pleased to support this bill and to commend it to the House.