8. Question No. 8—AgricultureTODD MULLER (National—Bay of Plenty) to the Minister of AgricultureQuestion No. 8—Agriculture 8. TODD MULLER (National—Bay of Plenty) to the Minister of Agriculture: Does he stand by his statement in the House on 27 August that in stating the cost to farmers of meeting the Government's proposed new water policies would be 1 to 2 percent My estimate was based on my personal experience and talking with farmers. It was a guesstimate." and if so has he received any official advice that has changed his "guesstimate"?Hon DAMIEN O'CONNOR (Minister of Agriculture): Yes I stand by my estimate and nothing has changed it. The freshwater document includes some 14 pages of modelling. We're going to build on that as part of consultation as we hear more from farmers. There are many farmers who are doing great work to protect waterways and boost their profitability. For example Southland farmer Mark Anderson is using different methods to slow down the water cycle so that the land filters the water. He says "It's going to clean up our rivers and it's a healthier way to farm." Anderson told Stuff that he wishes he had made the changes 15 years ago.Todd Muller: How does he square his guesstimate with the Landcare report Modelling the impact of freshwater mitigation scenarios: results for the Ruamahanga catchment which estimates that total farm revenue will fall between 7 and 46 percent when the impact of the multiple proposals are combined?Hon DAMIEN O'CONNOR: I am very aware that different catchments around the country will have to use different methods to reduce their nitrate output. We are determined to have good quality water in this country—in rivers in lakes and on the beaches. I think most New Zealanders deserve that. The modelling that some people have done is accurate but some of the scaremongering by the National Party is completely unhelpful and all it's doing is scaring good farmers who want to get on and do the right thing.Todd Muller: How does he square his 1 to 2 percent guesstimate with the AgFirst report Modelling of mitigation strategies on farm profitability released by the Ministry for the Environment that states that the cost of shifting to a five-metre fencing set back on a representative Waikato - Bay of Plenty dairy farm will be 40 percent of earnings before interest and taxes over a 10-year period?Hon DAMIEN O'CONNOR: What we have is a discussion document with a number of proposals that we are putting out in front of farmers. I know there are many organisations going out there and doing their estimates. Can I say Mr Speaker—[Interruption] Can I say Mr Speaker in my view—SPEAKER: The member can say and some of us would like to hear.Hon DAMIEN O'CONNOR: Thank you. In my view the cost to the average farmer in this country when we've finally come up with the proposals will be far less than the annual bonus he got from Fonterra as a senior executive.Todd Muller: Pathetic. How does he square his 1 to 2 percent guesstimate with reports by Local Government New Zealand and Landcare that show that over half of the Waikato-Waipā catchment and close to 100 percent of the Clutha catchment would need to be afforested to achieve nitrogen and sediment bottom lines?Hon DAMIEN O'CONNOR: We haven't made decisions on these issues. That's why we have a discussion document out there. If that member continues to go round the country and paint the worst possible scenario when in fact the vast majority of farmers in this country are trying to do their very best the changes they will have to make will be far less than anything he or his mates project. Can I say that many many farmers welcome this move and when I go round and talk to catchment groups they say "We're getting on and investing. We are tidying up our waterways but there are some laggards in the system and we want Government assistance to make sure that those laggards get on and do the right thing." That member is supporting the laggards.Rt Hon Winston Peters: Is Fonterra supporting his initiatives despite having to recover from appalling mismanagement economically in the past?Hon DAMIEN O'CONNOR: In spite of some disastrous decision-making by both governance and senior management over the years Fonterra understands the need to have clean water in New Zealand to back up its international image around the world as a country of producers of the finest food from the best environmental management in the world. Fonterra sent out a letter supporting our moves to clean up the waterways and I'm thankful for a new level of governance and management in that company—a company that was let down by previous management disasters.Todd Muller: That letter that went to the Fonterra shareholders that you just quoted—was that the same letter that said "Fonterra utterly rejects the Government's dissolved-in-water nitrogen levels as totally unpractical"?Hon DAMIEN O'CONNOR: Absolutely I—[Interruption] Can I say Mr Speaker—SPEAKER: Order! Order! I say especially for the member who's generally better behaved than he is now: when he asks a question he should not lead the group of people who are stopping the answer being heard.Hon DAMIEN O'CONNOR: Can I say that it would be unusual if Fonterra agreed with every single thing that the Government put up but can I say that Fonterra absolutely supports the improvement of waterways in our country where they are degraded and they're not degraded everywhere. That's one of the issues that we're happy to have a discussion about with Fonterra and any other farmer around this country. That's why we're out there listening to their views. It's a shame the previous Government didn't.Todd Muller: Will he listen to farmer leaders who are asking the Government for 12 weeks to submit on 2000 pages of supporting documentation for the freshwater policies because they need a fair time to actually read and respond or will he say as he said last week "No; six weeks is enough—maybe a two-week extension if you're lucky. This has all largely been signed off"?Hon DAMIEN O'CONNOR: As I explained to farmers last night at a meeting in Greymouth we have extended the submission time. We do understand it's a busy time of the year but the standard period for consultation is about six weeks. This is a discussion document and most of the farmers that I speak to are intelligent they are forward-thinking and they can put in a submission within the six-week period. Maybe he's talking to the wrong people."