SpeechRt Hon DAVID CARTER (National): For anybody who is still listening to the debate that contribution was Mark Patterson New Zealand First who spent 10 minutes telling this House why he shouldn't be voting for this legislation and then said he will vote for this legislation. I cannot understand New Zealand First who claims it's the champion of the rural sector out there imposing the zero-carbon bill and fuel taxes galore and with an opportunity to show solidarity tonight to every dairy farmer in New Zealand that opportunity has been ignored by New Zealand First.I was trying to think of a charitable way to describe this legislation over the lunch break and it is lightweight legislation by a lightweight Minister of Agriculture.I know more about the history of this legislation than anybody probably in this House. I know that Damien O'Connor claims credit for the original legislation in 2001 but the background to that was these negotiations started in 1998. I was the Associate Minister for agriculture and I was involved. At that stage Damien O'Connor there were heavyweights involved. The Hon John Luxton—Hon Damien O'Connor: You didn't have the guts to do it.ASSISTANT SPEAKER (Hon Ruth Dyson): Order! Sorry the Hon Damien O'Connor please stop that sort of comment.Rt Hon DAVID CARTER: Thank you Madam Speaker. At that time there weren't lightweights involved in this discussion; they were heavyweights. The Hon Bill Birch the Hon John Luxton the Hon Bill English and men of that ilk were approached by two major dairy co-ops to come together to form Fonterra. That is the history of this legislation. The donkey work was done by the National Government prior to the 1999 election. Damien O'Connor then became the Minister of agriculture. He claims credit for the formation of this idea and that is not correct. It is erroneous or at the very least duplicitous.But having put two major competitors together there were issues around the Commerce Commission. At that stage Fonterra would have been collecting 97 percent of all milk produced in this country. There had to be some restrictions on Fonterra. There had to be the ability for competition to come into this industry. You could argue that that legislation was about Fonterra being on trainer wheels and tonight there's the opportunity to take the trainer wheels away from Fonterra get this House out of its business and let the dairy industry foster. But the lightweight Minister has missed that opportunity supported by New Zealand First. This legislation would not go through if New Zealand First really believed it was the saviour the representative of rural New Zealand. They are missing a golden opportunity.Having said that and having been involved in the initial discussions around the formation of Fonterra I want to put on record here tonight that I have been extremely disappointed with the financial performance of Fonterra over many years. I say that sincerely because it is the biggest company in New Zealand the standard of living of every New Zealander is affected by the performance of Fonterra. One thing the Hon David Bennett said in his contribution is overseas it is well regarded. It is an international icon. But here in New Zealand it hasn't performed financially as it should. It promised to us as the original foundation Ministers involved in these discussions that it would become the Nestlé for New Zealand. It has failed to do so. I say to this House tonight that one of the things that the original legislation ensured was the opportunity for other competitors to come into this industry. We've got the likes of Oceania Dairy Synlait and Talley's organisation there now and thank God we've got them because they've been one test against the performance of Fonterra.Subsequently to the original legislation we then moved to the trading amongst farmers trying to give opportunities for Fonterra to raise the necessary capital that it needs to prosper. I feel very very sorry for any investor who has bought shares in Fonterra from the time trading amongst farmers started because they have lost considerable equity and the returns have been minimal and in this year they will be nil.Hon Damien O'Connor: The member supported trading among farmers. Rt Hon DAVID CARTER: We delivered trading amongst farmers and it has been a failure—it's been a failure. This is the stupidity—ASSISTANT SPEAKER (Hon Ruth Dyson): Could the member move towards the bill—just passing reference or a little more on the bill that we're debating. It's the first reading.Rt Hon DAVID CARTER: This is about the bill Madam Speaker. It's about Fonterra's failure to perform and you Madam Speaker are affected by the failure of Fonterra to perform. And here's the opportunity to actually get this House out of it to let Fonterra stand on its own two feet and not have it coming back every three years or four years for dairy industry restructuring legislation.I think that 18 years on it's time to take the training wheels off let Fonterra go. Let it compete adequately with the Synlaits and the Oceania Dairies and the Mirakas; let it have a go. Give farmers the opportunity to produce their milk and for them to decide who is the best processor for them to cooperate with.What I totally disagree with is this open and entry clause which Damien O'Connor is persisting with that a farmer can actually make a choice to go to another processor and then a year or so later change his or her mind and this legislation means Fonterra must take them back again. What sort of hurdle is that to Fonterra. What you've got is a completely changed dairy industry Damien O'Connor from what we had in 1998. Since that time we've got an industry now which I would describe as stainless steel - capacity reached. I'd go further Mr Damien O'Connor to say dairy cow numbers have reached their peak in this country. The situation is totally different to what it was when these discussions occurred in 1998. So take the shackles away. New Zealand First should've realised the folly of their position.This is an industry which can be iconic. It can really provide for the standard of living of every New Zealander but it needs the opportunity to do so. The only part I think I totally agree with in this legislation is the need for provision of some domestic competition. Supply more to Goodman Fielder; 250 million litres up to 350 million litres that would be on a par with the population increase that's occurred in this country since 1998.But let us internationally get out there perform for the benefit of New Zealand. Don't shackle and protect an industry that actually wants the trainer wheels taken off them Damien O'Connor. Let it have the opportunity to maximise its economic potential because it hasn't done so and I think it can argue one of the reasons it hasn't done so is the shackling of the dairy legislation.So I say to this Government Think again—think again about the legislation you're passing here tonight." There was an opportunity 18 years on from the original passing of the legislation to let it go; but no the Government's intent on missing that opportunity.I am absolutely staggered that New Zealand First as a party that actually claims it's got an interest in New Zealand agriculture has marched into the lobbies of the Ayes to vote with the Government without thinking about it. Mark Patterson smirks over there because he's a good guy but this will be the sort of legislation if he supports he'll have one of the shortest parliamentary careers of all times three years and three years only. There's still a chance Mark Patterson talk to your New Zealand First colleagues get them to see reason and change your mind."