O'Connor Damien: Dairy Industry Restructuring (New Sunset Provisions) Amendment Bill — In Committee 
O'Connor Damien: Dairy Industry Restructuring (New Sunset Provisions) Amendment Bill — In Committee 
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Hon DAMIEN O’CONNOR (Labour) 
: 
 This is a very important bill and it is good to see the Minister of Agriculture in the chair. I am sure that he will be able to answer many many questions. 
The bill has taken quite a bit of parliamentary time. We did not filibuster at all at its first reading and it has been through the select committee process but I have to say up front in this Committee stage that it is a waste of time except for one provision and that provision is the reason Labour is supporting it. 
The bill ensures an ongoing supply of milk to independent processors. We will ask questions later about competitors to Fonterra and why they should be able to get this supply. The reason that Labour has supported this bill—and the day after the Minister introduced it he said it was redundant because he was conducting a full review because a bit of political weight had been brought to bear on him— 
Sitting suspended from 6 p.m. to 7.30 p.m. 
Hon DAMIEN O’CONNOR 
: We are looking at the title of the Dairy Industry Restructuring (New Sunset Provisions) Amendment Bill which includes the words “Sunset Provisions”. I hope no one takes those words to mean that the dairy industry is on the way out. But if this National Government were to get back in who knows? It would like to restructure the dairy industry— 
Chris Tremain 
: Yes they’re gone. 
Hon DAMIEN O’CONNOR 
: That is right—there is an admission. 
While the Minister of Agriculture is in the chair and able to answer a few questions following on from my speech earlier I want to ask him about the review of the Dairy Industry Restructuring Act regulations. I understand that the review took place and he may have before him recommendations on the review. Labour will support this bill which is an interim measure. As I said earlier it is possibly a waste of time but it guarantees supply to independent processors. 
The Minister announced that review and I understand that there are recommendations before him. I hope he can bring to the Committee some wisdom so that in discussing this bill we can know exactly his ideas for the Dairy Industry Restructuring Act regulations into the future. Is he going to remove them? Is he going to ensure there is access to other independent processors either for export or for domestic? Labour’s preferred position is that there be ongoing supply for domestic production but the supply for the export competitors of Fonterra needs to be seriously looked at. It is important to put that issue on the table. Labour supports this bill not to guarantee supply to competitive exporters into the future but to ensure that there is ongoing supply to the domestic market. 
There are a lot of questions around the dairy industry at the moment. We spoke about some of them earlier when debating the Environmental Protection Authority Bill and the likelihood that it will be looking at a large-scale expansion of the dairy industry. That is all well and good and we like to see that but only with the right environmental protections. 
One of the big questions hanging over the industry is the level of foreign ownership. The National Government has allowed Synlait to be purchased by majority foreign shareholding. 
The CHAIRPERSON (Lindsay Tisch) 
: Clause 1. 
Hon DAMIEN O’CONNOR 
: That is right. That issue is around the restructuring. Synlait takes milk through the Dairy Industry Restructuring Act regulations. Synlait currently— 
Hon David Carter 
: Clause 1. 
Hon DAMIEN O’CONNOR 
: Yes it does. The Minister is trying to say no. It takes milk— 
The CHAIRPERSON (Lindsay Tisch) 
: We are on the title clause 1. 
Hon DAMIEN O’CONNOR 
: That is right. It is the Dairy Industry Restructuring (New Sunset Provisions) Amendment Bill. The Dairy Industry Restructuring Act regulations enabled many companies to take milk and to set up in competition with Fonterra. 
We do not want to be confused about titles or anything like that. We need to know that this bill is basically about an odd commercial arrangement that was laid down when Fonterra was set up. The reasons were that Fonterra’s dominant position in the market required some access to milk to be assured for independent and innovative producers. We did that but we have seen emerge some large export competitors of Fonterra who continue to access this milk and it is important that we review the situation. I hope the Minister takes a call and explains where he has got to with that matter.