Connell Brian: Animal Products (Dairy Products and Other Matters) Bill — In Committee 
Connell Brian: Animal Products (Dairy Products and Other Matters) Bill — In Committee 
[Volume:624;Page:19145] 
BRIAN CONNELL (National—Rakaia) 
: 
 I thank the Minister for Food Safety for taking a call. I thought she made some fair points and her contribution was reasonably balanced. I have to ask her a question though in relation to her saying that a part of this bill is to facilitate entry of products into overseas markets. That does pose a question about what we have been doing in the last 30 to 40 years in this industry. 
Hon Annette King 
: There could be new markets. 
BRIAN CONNELL 
: The Minister says there could be new markets but I have tried to build an argument that the expertise in this industry is such that it has the ability to get into new markets. I have already said in a previous call that Fonterra now operates in 42 countries around the globe. 
The Minister made a second point and I thought on balance it was also fair when she talked about the need to balance the standards we want with those standards imposed by overseas countries. I find myself agreeing with that somewhat but I wonder how hard we work in Government to convince particularly our European markets just how exacting we are in the standards we impose on our dairy industry in this country. That industry is not subsidised unlike the ones the Minister is comparing it with. It is very hard to get more blood out of a stone when the industry is already performing to very exacting standards. 
I pose the question and I posed it before of just how necessary some of this stuff is. I go through the bill and see that we are putting definitions into legislation and members of the Committee might be interested to know that under clause 5(2) “dairy material” is now “milk extracted from a milking animal;”. That is one definition of it; the second is “any material derived or processed from milk extracted from a milking animal”. I know that Mr Perry said that he had milked cows so he will be interested to know what a “dairy processor” is. Under the definition “dairy processor means a person who for reward (otherwise than as an employee) or for purposes of trade carries out dairy processing; and—(a) includes—(i) a farm dairy operator:”. 
Edwin Perry 
: How do you work that out? 
BRIAN CONNELL 
: I do not know but I thought that might bowl the member over. In the following subparagraph a “dairy processor” is also “(ii) a transporter of dairy material from a farm dairy to a place of processing or manufacture:”. This is an industry as I have said that contributes something like $5.5 billion to New Zealand’s export earnings yet we thought we had to tell the industry those things! I found the definition of “dairy product” quite interesting—one lives and learns. Under the definition it “(a) means animal product that having originally been dairy material—(i) has been delivered to the place of sale for consumption or for end use for purposes other than consumption; or (ii) has left New Zealand’s territorial waters in the course of its export:”. 
I have one last point that I thought was worth mentioning for the benefit of people like Dr Hutchison Mr Mark—in his capacity of having owned a number of dairy farming estates—and Mr Perry. I thought they might want to know what a “farm dairy” is. It is “a place where milking animals are milked”. Just for the sake of clarity the definition goes on to state that it is a place where they are milked on a permanent basis or on a temporary basis. But the key is that it is a place where dairy animals are milked and its surrounds could include stockyards milking yards or feedlots. I ask the Minister in the chair whether we really need to tell an industry that operates in 42 countries around the world and that contributes $5.5 billion to our export earnings how to suck eggs. Because that is what we are doing. That is the very issue I was bridling against before when I said that what we are being threatened by here is unnecessary legislation and red tape. 
Clause 1 agreed to. 
The question was put that the amendment set out on Supplementary Order Paper 330 in the name of the Hon Annette King to clause 2 be agreed to. 
Amendment agreed to and clause 2 as amended agreed to. 
The Committee divided the bill into the Animal Products Amendment Bill (No 2) and the Animal Products (Ancillary and Transitional Provisions) Amendment Bill (No 2) pursuant to Supplementary Order Paper331. 
Bill reported with amendment. 
Report adopted.