Guy NathanNEW ZEALAND HORTICULTURE EXPORT AUTHORITY AMENDMENT BILLThird ReadingHon NATHAN GUY (Minister for Primary Industries): I move That the New Zealand Horticulture Export Authority Amendment Bill be now read a third time. The New Zealand Horticulture Export Authority Amendment Bill will update the New Zealand Horticulture Export Authority Act 1987 and will make some of the key provisions in the Act more flexible and clearer for the industries involved. The Act is of critical importance to our horticulture sector. Most of the industries in the sector are small but with many producers and exporters. The Act provides a framework for producers and exporters to collaborate on the export marketing of their products.This is an enabling piece of legislation. Producers and exporters decide whether to come under this framework and once they are under the framework they decide on the marketing strategies for their export produce. Grade standards are a key component of their marketing strategies. The Primary Production Committee recommended a number of changes to the bill in response to submissions received. As I said in my second reading speech the changes recommended by the Primary Production Committee provide greater clarity and will improve the implementation of the amendments proposed in this bill. I want to thank the members of the Primary Production Committee. They did an outstanding job under the leadership of Ian McKelvie. The Government has supported all of the recommended changes that came through that committee.The bill will make a number of changes to the Act and I just want to go through those. There will be increased flexibility for the industries from the proposed multi-tier export licensing provision with industries being able to choose up to five tiers of markets. They can choose to retain their current one-tier model if they like. This change is about choice and empowering industries to optimise their returns from different markets. There will be more clarity around the entry and exit requirements. The industries will retain their ability to choose if and when to enter and exit from this export framework.There will be more clarity certainty and transparency around the authority's funding and around the fees and levies that producers and exporters will be charged. The updated fines will improve the effectiveness of the enforcement provisions in the Act. The current fines were set in 1987—almost 30 years ago.There will be greater need for our industries to collaborate in the markets in the future as we continue to successfully market our produce and retain our reputation for exporting high-quality and safe produce. The Horticulture Export Authority framework has proven over the last 29 years or so that it works for the industries and those industries will continue to benefit from this framework long into the future.We all know in this House—and particularly on this side of the House—that our primary sectors are indeed innovative from orchard to farm and right through to the plate. We are breeding new highly successful cultivars at one end and developing new high-value markets at the other. Our horticulture export sector has diversified into new markets. We are exporting produce to over 100 countries a year now. In 1995 39 percent of our horticultural exports by value went to the European Union and 20 years later in 2015 only 21 percent went into that market. Our industries are developing new markets as the Government seeks to improve market access for these products around the globe. Population growth and increasing prosperity through Asia is resulting in increasing demand for our premium horticulture products. That will continue into the future. For our industries to benefit from this with premium prices in the growing and new markets we must not only remain innovative and competitive; we must also collaborate together in these markets. The New Zealand Horticulture Export Authority Act provides that framework for collaboration.With the upcoming changes to the Act our industries will have a more flexible tool to target specific market opportunities in these different markets and to minimise the cost which is hugely important. It is a small entity. It has very low overhead costs and this bill will not change that. The bill updates and futureproofs the existing provisions in the Act and it provides more options and clarity for the industries. I commend this bill to the House.