Delahunty Catherine: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeDelahunty Catherine: Oral Questions — Questions to Ministers[Sitting date: 23 June 2015. Volume:706;Page:4619. Text is incorporated into the Bound Volume.]8.CATHERINE DELAHUNTY (Green)to the Minister for the Environment: Does he support the continued Landcorp conversion from forestry to dairy despite the impact dairy farming has on freshwater quality and the ongoing loss of forest as a carbon sink?Hon Dr NICK SMITH (Minister for the Environment):Approval for these conversions is a decision for the Waikato Regional Council and the Taupō District Council relative to their regional and district plans or if appealed to the Environment Court. The Government is requiring a strengthening of these councils’ plans and rules in respect of freshwater quality with the 2011 national policy statement and the 2014 minimum standards. I also note that Landcorp is contractually bound to do these over $200 million worth of conversions and to manage the farms until 2049 under a deal approved by the then Government in 2004.Catherine Delahunty: I raise a point of order Mr Speaker. The Minister addressed the first leg of the question extremely well but there is a second leg that was not addressed about the loss of forest as a carbon sink.Mr SPEAKER: If the Minister would be kind enough to address the latter part about the ongoing loss of forests as carbon sinks.Hon Dr NICK SMITH: If any forest is lost as part of the deal they are required to meet those through the emissions trading scheme obligations. The price of the emissions trading scheme has been quite low historically but members should note that from 1 January this year when international units have no longer been available the price is currently sitting at about $6.80 and so there is a financial obligation for the loss of those forest sinks.Catherine Delahunty: Is it OK for a Government-owned farm operator to sacrifice the health of the Waikato River for increased dairy production in the upper catchment while displacing a carbon sink with yet another source of greenhouse gas emissions? Is that OK with the Minister?Hon Dr NICK SMITH: The difficulty for the Government is that contractual obligations were entered into in 2004 that oblige Landcorp to be able to convert those farms. My understanding is that a number of about nine farms have been converted; about 29 are proposed in the deal. There is an expense to Landcorp of something over $200 million and it would be in breach of those contractual obligations if it did not proceed with those dairy conversions. The job of Government is in terms of the regulatory regime and that is why we have put in place a national policy statement and minimum water quality standards which the Waikato Regional Council is required to implement into its regional plan.Catherine Delahunty: Given the fact that the Parliamentary Commissioner for the Environment and the OECD economic survey have highlighted that standard mitigation measures such as repairing planting struggle to keep up with nitrogen losses what action is the Minister taking to reduce the density of cows on farms which is the source of nutrient pollution?Hon Dr NICK SMITH: The report by the Parliamentary Commissioner for the Environment complimented the Government on the very first freshwater national policy statement which we introduced in 2011. I commend my colleague Amy Adams on the very hard work that went into putting the minimum standards into that national policy statement. The Parliamentary Commissioner for the Environment noted the momentum that has taken place across New Zealand in getting those national standards implemented at a regional level and that is what we need to see through if we are to deliver the step change in these impacts on water quality.Catherine Delahunty: Given that mitigation to date as is highlighted in the other parliamentary commissioner’s report of last week has not protected lakes such as Karapiro from turning pink from pollution will he admit that his strategy for protecting water from excess nitrogen from cow waste is failing?Hon Dr NICK SMITH: Quite the opposite. I would point to a lake like Lake Taupō and the progress that we have made with the specific initiative there. I would look at a lake in my colleague Todd McClay’s electorate where he has worked hard and Lake Rotoiti I am advised is the best it has been in 25 years. I would look to the partnership that this Government has formed in the Manawatū and the progress that has been made in that catchment. I openly acknowledge that there is more work to do and that is why the Government has been quite open about the next steps it intends to take around improving freshwater management with a discussion document by myself and the Ministry for Primary Industries planned for later this year or early next year to ensure that we take those next steps.