Carter David: Dairy Industry Restructuring Amendment Bill (No 2) — Second Reading In Committee Third Reading 
Carter David: Dairy Industry Restructuring Amendment Bill (No 2) — Second Reading In Committee Third Reading 
[Volume:644;Page:13750] 
Hon DAVID CARTER (National) 
: 
 I think the important section of the bill is around clause 2 “Commencement”. This legislation has to be passed by 31 December 2007. The date is important because it was the original date on which the allocation to Fonterra of these licences was set. The history goes back to the issue around quota allocation being very difficult to determine at the time of the dairy industry’s restructuring in 2001 when the Dairy Industry Restructuring Act was going through Parliament. 
I point out that although the Act went through Parliament in 2001 the discussions on the deregistration of the New Zealand Dairy Board and the opening up and restructuring of the industry actually commenced through the late 1990s. I think Parliament should record today the efforts made by a former Minister of Agriculture the Hon John Luxton who drove this process and initiated it. It was something that at the time was not widely accepted by some of the dairy— 
R Doug Woolerton 
: While he and Wyatt Creech were starting up a cheese factory. 
Hon DAVID CARTER 
: Well Mr Woolerton says that they managed to start up a cheese factory which was a very successful initiative. It was allowed by this very legislation and it is something that that member ought to applaud instead of knocking. But that member is at the stage when he is living in the last century I assure members. Mr Woolerton is living in the last century but I just say to him—I have a few things I want to say but I do not want to use up my time—that this industry has been moving on for a long time. It is time that “Rip Van Winkle” woke up and took the chance to look at what has happened because we should be very proud of this industry. 
I say to the Minister in the chair Jim Anderton that one of the interesting little developments in the Primary Production Committee was to be found in the definitions. We found to our surprise that the whole of the quota issue is determined by the amount of milk solids collected on New Zealand farms. Through this process we found to our absolute amazement that the word “milksolids”—and I say it as one word because we found there was a reason why it had to be one word rather than two words—had never been defined in legislation. So we have included that definition to make sure it is there in the legislation so that any subsequent allocation is made on that basis. 
The other issue I will touch on which I did not mention in my first contribution is around the calculation of quota and the ability of companies now to do that over a period of three seasons. This was something that struck the select committee. The select committee members know because of the climate change issue as much as anything else about the issue of droughts affecting particular regions. It is certainly something that is on the minds of the select committee members. 
For example if Westland were to be devastated by a drought in any one particular year then more than that year would be affected in production terms. The effect of that drought could flow over 1 year 2 years or even 3 years. The select committee recognised that and has therefore given the ability for the calculation of quotas to be on the basis of recognising the effect on more than 1 year or 2 years’ production but in actual fact 3 years’. 
I think those are the main points but one that is certainly of annoyance to members on this side of the Chamber is the fact that the Government after having had this bill on the Order Paper for some time has not been able to move it in normal sitting time. Here we are now in urgency driving the bill through all its stages so that the Governor-General can get it on his desk prior to the Christmas break sign it and make sure it is done. 
This issue has been around since early 2000. The Government has had 7 years and now here we are in the very last dying days of this Parliament—in fact in the dying days of this Government I suggest—rushing it through all its stages. 
Dr Ashraf Choudhary 
: Dream on! 
Hon DAVID CARTER 
: Ashraf Choudhary laughs but he is the only member on that side of the Chamber who is laughing. At least this bill is finally being attended to and for that I congratulate the Minister.