Locke Keith: State-Owned Enterprises (AgriQuality Limited and Asure New Zealand Limited) Bill — Third Reading 
Locke Keith: State-Owned Enterprises (AgriQuality Limited and Asure New Zealand Limited) Bill — Third Reading 
[Volume:640;Page:10137] 
KEITH LOCKE (Green) 
: 
 The Green Party has had somewhat mixed feelings about this bill but we do agree with the previous speaker and with Doug Woolerton that competition in the area of meat inspection is not necessarily beneficial. It can easily drive down the quality of the product and make it difficult to ensure that there is not some damage to or disease in the meat that is sent to market. When the previous speaker spoke on the question of whether competition is always good my friend Doug Woolerton yelled out “Air New Zealand” and I think that is a case in point. The wages and conditions of workers at Air New Zealand were driven down as a response by Air New Zealand to competition and I am scared that there will be a driving down of quality and a driving down of the conditions of workers if competition is allowed in this case even though it would be between two State-owned enterprises. 
If we look at the meat industry we see that that has happened a lot in the past. I used to work in the meat industry for a few years and the workers were pretty regularly under attack as there was competition between the meat companies for product—beef mutton and lamb—coming in from the farmers. The competition was often based on driving down the wages of workers. I think the Public Service Association which covers many of the workers in meat inspection is worried as well that that will happen if there is competition. 
Eric Roy talked about the problems the meat industry is having at the present time. That is true; meat prices have been down. We read articles in the papers about PPCS being in a difficult position in debt and things like that. We can see that that is a situation where if there is a competitive environment in meat inspection the meat companies might put pressure on these competing meat inspection services to come forward with a lower price. How would that be achieved? It would be achieved by putting the meat through more quickly with less quality in inspection and perhaps with lower wages for the staff involved. The lower the wages go the less skilled the workers are and then there are problems. As indicated before it is quite important if we are to provide guarantees and to coordinate with others around the world in terms of preserving safety in food standards and preventing diseases from going around the world and perhaps taking hold in New Zealand to have a real quality inspection system. 
The reason why the Greens have mixed feelings on this legislation is that one of the problems in merging these two State-owned enterprises is that we then have a monopoly State-owned enterprise and we do not necessarily think that that is the best form of organisation for a monopoly. We would favour a Crown-owned entity where at least there is more openness more ability for the Government to step in and where there will not be purely commercial criteria operating. We have seen the problem with some State-owned enterprises recently. For example the Solid Energy State-owned enterprise has gone really over the top in spying on protesters. The Minister Trevor Mallard had to criticise Solid Energy for putting spies in protest groups. 
We have had other cases where State-owned enterprises have got a little bit out of control; New Zealand Post went a little bit funny for a while. The Green Party position is that a Crown-owned entity would be a better model. Quality can be preserved with a publicly owned service; we saw that for years when the Ministry of Agriculture and Forestry inspectors were running the show. The ministry was in essence a monopoly. We had very good meat inspection through that service. That is the background we are working from. 
I know how easy it is to lower quality; I have worked on the chain and I have worked as a meat grader and I know that meat can be pushed through a bit too fast. The meat might not be graded properly or the meat inspectors might let certain diseases through by not paying sufficient attention. So I think it is important that we have the quality guaranteed by a transparent public body and as was indicated public bodies are recognised around the world too. People want a Government sign-off internationally when we export our meat and do not want to be reliant on a private agency. 
It is good that there was that Supplementary Order Paper to add in a role for the Commerce Commission; that gives some control over the situation. But the Green Party would certainly prefer a Crown-owned entity. Therefore rather than vote for the bill the party has decided to abstain to make the point that it thinks there is not enough openness in the system when it is a State-owned enterprise. Thank you.