Sabin Mike: Dairy Industry Restructuring Amendment Bill — First Reading 
Sabin Mike: Dairy Industry Restructuring Amendment Bill — First Reading 
[Advance Copy - Subject to minor change before inclusion in Bound Volume.] 
MIKE SABIN (National—Northland) 
: 
 I am glad to take a call on this very important bill the Dairy Industry Restructuring Amendment Bill. For the sake of the House’s knowledge not only am I the member of Parliament for Northland but I also have a little bit of skin in the game in the past as a dairy farmer of some 4 years although it did seem like 40 years at the time I must say. Diving around in ditches wondering what my arm was doing in the piece of a cow that it should not really be in trying to rescue calves—I reflect on that with great heart and the due respect I afford our dairy industry for the immense contribution that they make all jokes aside to this nation. I am also a member of our caucus committee and fortunately have the opportunity to sit on the Primary Production Committee as a substitute although I very much hope that I am able to contribute in a full-time role on the select committee as this bill makes its way through the process.  
Back on 24 January the House will recall that the Minister set out a series of proposals about this bill. It has been over 10 years since the Dairy Industry Restructuring Act was first instigated and make no mistake—and I think it is acknowledged across this House—that we have Fonterra because of the Dairy Industry Restructuring Act. It provides for a platform internationally that gives us the most effective economic capability while providing some domestic competition and tension and I think everyone wins in this scenario. But some 10 years on it is fair to say that it is time to look at the policy settings it is time to look at this legislation and therefore we find ourselves discussing this bill.  
Can I also point out that it is important that there is heavy discussion and debate around this not only in this House through the select committee process but on the streets leaning on farm strainer posts and so forth because it is so important to this nation. It is no great surprise to anyone that the dairy industry is almost double the size of the nearest export earner behind it. It is in everyone’s interests that we absolutely achieve the best platform for Fonterra for our dairy industry moving forward. Therefore I welcome this process and I welcome the submissions that will no doubt be heard at the select committee from perspectives across the board.  
The dairy industry is very important to Northland; in fact it underpins our economy an economy that does have its challenges. I was fortunate after the initial proposal and discussion to hit the road to be amongst farmers and to listen to their concerns. Interestingly enough the two concerns that they raised the most were in actual fact around the conditions under which their competitors received milk the level playing field that needed to be achieved in that regard and the issues around virtual processors. So I welcome the opportunity for those within the industry to bring forward their concerns around what was to them something that we very seriously needed to look at and certainly need to apply our thoughts to.  
Can I just say at this stage as the last speaker that I would like to reflect on some of the important messages that this debate has touched on and the things that I think we need to reflect on as this bill moves through this process and that we try to find consensus in something that is very important to this nation and to the foundation blocks of our economy.  
The changes to the Dairy Industry Restructuring Act are about ensuring that we have the most efficient dairy industry in New Zealand and that we are at the forefront of this industry globally. It is a $13 billion company—$13 billion. This bill enables Fonterra to raise capital and reinvest and grow further in the industry. This bill will improve the transparency of and the confidence in Fonterra’s farm-gate milk price setting. It is important to note that there is a disconnect between the public’s understanding of the farm-gate milk price and what they see in the supermarkets.  
This bill will also primarily embed Fonterra’s current milk price governance arrangements in legislation it will require Fonterra to publicly disclose information on its milk price setting and it will introduce an annual milk price - monitoring regime to be undertaken by the Commerce Commission.  
There is nothing to hide from in terms of transparency. The devil is in the detail. I welcome submissions on this. However let us not forget that with this bill the time has arrived. This industry is too important to New Zealand not to get this right and I welcome the opportunity to participate in this process moving forward.