Salesa JennyEnvironment and Oceans and Fisheries Hon EUGENIE SAGE (Chairperson of the Environment Committee): Tēnā koe Madam Chair. I'm very pleased to introduce the annual review 2020-21 debate on the environment sector with a very brief summary of the Environment Committee's examination of performance of Predator Free New Zealand the Environmental Protection Authority (EPA) the Climate Change Commission the Ministry for the Environment and the Department of Conservation.The Environmental Protection Authority spent $33.2 million last year. And the committee noted that 2020-21 was the fourth year in which the EPA has operated a deficit budget model and has been funding its work programme from reserves. And while the EPA received an additional $1 million to reassess the regulatory controls on chemicals we heard that the authority was only able to reassess nine of the 43 substances on its priority chemicals list—all of them synthetic pyrethroids as well as hydrogen cyanamide.Moving on to Manatū Mō Te Taiao—Ministry for the Environment. In contrast to the EPA the Ministry for the Environment had 30 percent more revenue in 2020-21 up to $124 million with spending of $119 million. And it had more than 150 additional full-time staff compared to the previous year. This increased funding recognises that the ministry is responsible for major reforms in climate change resource management waste and fresh water. And the committee questioned and discussed with the Environment Secretary issues in each of these areas. One of the suggestions the Auditor-General made was that the ministry improve the links between how it measures the impacts of its work and the environmental outcomes that it seeks to achieve. On climate change we heard that the ministry had heard more than 10000 public submissions on policy proposals for the emissions reduction plan and that of course is due to be released by the end of May this year.The Primary Sector Climate Action Partnership—He Waka Eke Noa—is also due to provide its recommendations to the Government in May on the design of a farm-level emissions pricing system for implementation by 2025. The ministry told us that it was both working with the He Waka Eke Noa partnership while also preparing for the backstop option of agriculture coming into the emissions trading scheme (ETS) at a 95 percent free allocation if this is required. And committee members raised the concerns of rural communities about the effects of carbon farming and offsetting through planting permanent pine forests and changes to the ETS settings there. And we certainly heard that the ministry recognised the importance of having an equitable transition strategy as we shift to a low-emissions economy.Moving to He Pou a Rangi—the Climate Change Commission. Like the Ministry for the Environment the Climate Change Commission has engaged in substantial public consultation. It received and analysed more than 15000 submissions on its draft advice to Government on how Aotearoa should reach our 2025 emissions targets. And that public feedback contributed to the commission's 33 recommendations in Ināia tonu nei: a low emissions future for Aotearoa. So here the committee questioned and discussed the modelling and analysis which supported the commission's recommendations the processes for offshore mitigation given the current 100 million tonne deficit in emissions reduction from domestic action which will need to be met through offshore mitigation. We looked at the performance of the ETS and the policy measures which complement the ETS because it alone can't achieve the level of emissions reduction that is required to meet our targets and budgets: measures such as the Clean Car Discount possible biodiversity credits and how we discourage deforestation of pre-1990 forests. And the commission noted that it is still developing the systems and processes that it needs to report on all the performance measures in its statement of expectations.And with Te Papa Atawhai—Department of Conservation—they had a 14 percent increase in revenue last year up to $590 million. And for the third year running the Auditor-General noted that the department's management control environment needs improvement and we heard that the department was rolling out a $62 million corporate services work programme to improve performance here. And we had very wide-ranging discussions with the new director-general Penny Nelson. And the committee also invited both the ministry and Te Papa Atawhai for a joint hearing and examination of Mahi mō te Taiao—Jobs for Nature. I thank the select committee staff the Office of the Auditor-General and all of the staff working in the agencies in the environment sector for their work. Kia ora. CHAIRPERSON (Hon Jenny Salesa): I call on the Minister for the Environment and for Oceans and Fisheries. And can I remind members that we have 45 minutes from the beginning of the session for answers and questions with the Minister.