Tirikatene RinoRINO TIRIKATENE (Labour—Te Tai Tonga): Thank you Mr Chair. I'm pleased to take a call in the committee stage of the Dairy Industry Restructuring Amendment Bill (No 2). I want to really focus on the core provisions of what we are doing with this piece of legislation. It is all about as my colleague Joanne Luxton said providing certainty for our South Island dairy farmers the whole dairy sector. If we look at clause 4 in Part 1 it really goes to the heart of it because Subparts 5 and 5A of Part 2 of the Dairy Industry Restructuring Act (DIRA) those provisions have been activated under the 2001 principal legislation. That was because the market threshold which was set in the legislation at 20 percent had been assessed to be in excess of that. So we had all of these legislative triggers that had been activated which led to the Minister requesting that the Commerce Commission produce a report but it also activated—Hon Ruth Dyson: Did they do it?RINO TIRIKATENE: They did; they did a very fine report. In fact the Commerce Commission felt that there was sufficient competition and the industry wasn't quite ready for full deregulation. So that's what we're doing here today ensuring that the provisions of DIRA which have been in place since 2001 will continue for all farmers in the South Island and processors as well.So let us think: what would happen had we not passed this legislation? It would throw the entire dairy sector of the South Island into disarray because the provisions of Subparts 5 and 5A of the Act are far-reaching. As I said it's activated a process a trigger point and the cancellation basically of the regulations that have long applied. So what we would do in one fell swoop by failing to pass this legislation is throw all of the dairy sector into disarray. They would not know whether they would be obliged—who would collect their milk whether they would still be able to apply for open entry into Fonterra or whether they would still be entitled to be able to give 20 percent of their milk supply to a different processor.So the reasons why we are doing this as I've said—it's very important that we maintain the status quo that we provide certainty for our South Island farmers and as it states here in repealing the provisions of the expiry which are imprinted into Subparts 5 and 5A we need to ensure that those provisions don't come into effect so that indeed as I've mentioned the status quo can remain. Our farmers of the South Island can be at ease they can wake up in the morning as they do and get to work on their farms and they will know exactly what will be taking place.Now that's not to say that change is not on the horizon and that's why running parallel to this piece of legislation there will be a review being carried out. As the Commerce Commission said there needs to be a pathway to deregulation but that needs further discussion further consultation with all of the industry because again these are big issues that need to be discussed. Setting the right thresholds—again based on the Commerce Commission's recommended 30 percent threshold effectively again the status quo should remain because currently Fonterra's supply that they don't have is around 24 percent.So it's really important that we pass this legislation. We started it under urgency and it's really important that we continue that process so we can again provide comfort certainty to the South Island dairy sector but also parallel to this we will continue the path have full consultation with the sector to ensure that there is a clear pathway to deregulation which will occur and that will provide a larger picture for our dairy sector in the future. But for the time being it's very important that this legislation—that the triggers that are in place are cancelled so the status quo can remain.