"\u003C!DOCTYPE html\u003E\u003Chtml xmlns:xlink=\u0022http://www.w3.org/1999/xlink\u0022 xmlns:xsi=\u0022http://www.w3.org/2007/XMLSchema-instance\u0022 xmlns:mml=\u0022http://www.w3.org/1998/Math/MathML\u0022\u003E\n  \u003Chead\u003E\n    \u003CMETA http-equiv=\u0022Content-Type\u0022 content=\u0022text/html; charset=utf-16\u0022\u003E\n    \u003Cmeta name=\u0022viewport\u0022 content=\u0022width=device-width, initial-scale=1\u0022\u003E\n  \u003C/head\u003E\n  \u003Cbody style=\u0022font-family:sans-serif; font-size:100%;\u0022\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000001\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u00222831914d6e544dde8bff5522b308b448\u0022\u003EThursday, 22 July 2010\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000003\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00225912fe3606514ad5995200030c9cf23c\u0022\u003EThursday, 22 July 2010\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000002\u0022\u003EMr Speaker took the Chair at 2 p.m.\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000004\u0022\u003EPrayers.\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000005\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022d4944569b3ae4855a855bc2498c5f791\u0022\u003EBusiness Statement\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000007\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u002204a94dff15f6405ca30e170715f5e121\u0022\u003EBusiness Statement\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u0022cd94e137faaa4a768055916c3812b722\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000006\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022cd94e137faaa4a768055916c3812b722\u0022\u003EHon GERRY BROWNLEE (Leader of the House):\u003C/span\u003E When the House resumes on Tuesday, 27 July, priority will be given to the Committee stage of the Appropriation (2010/11 Estimates) Bill, known as the estimates debate. Further in the week we would expect to make progress on the Ngati Tuwharetoa, Ruakawa, and Te Arawa River Iwi Waikato River Bill, which will have its first reading. The expectation is that other bills on the Order Paper will be dealt with. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022 data-id=\u0022688258d330b4469dae739fc4e5cdc311\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000008\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022688258d330b4469dae739fc4e5cdc311\u0022\u003EHon DARREN HUGHES (Senior Whip\u2014Labour):\u003C/span\u003E I thank the Leader of the House for his update. I wonder whether there is any legislation resulting from the Government\u2019s change of policy this week in respect of mining on schedule 4 lands. The Government announced that extra land would be included on schedule 4 of the Crown Minerals Act, rather than being mined. Will that result in any amendments to that Act, which is legislation that I know the Minister of Energy and Resources is all over. \u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u0022f7eab4bcb5cd45ddbec5a72d7689a2dc\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000009\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f7eab4bcb5cd45ddbec5a72d7689a2dc\u0022\u003EHon GERRY BROWNLEE (Leader of the House):\u003C/span\u003E On the question of the latter, I would expect some amendments to that Act to be introduced later in the year. On the question of the former, work is proceeding. \u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000010\u0022\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022 id=\u0022c7cfd9bc6f03446e8d6203fb3b3ebc41\u0022\u003EQuestions for Oral Answer\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000011\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022ccdd86c8c147454f8c03d843a75e87b0\u0022\u003EQuestions to Ministers\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000012\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022c6f5c4f262704afcb8db81e2f97431a6\u0022\u003ECommunity Max\u2014Performance\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022 data-id=\u002287aaa1ed567d4e22ad545ce52d043025\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000013\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022\u003E1. \u003Cspan class=\u0022HpsByToc\u0022 id=\u002287aaa1ed567d4e22ad545ce52d043025\u0022\u003EHon ANNETTE KING (Deputy Leader\u2014Labour)\u003C/span\u003E to the Minister for Social Development and Employment: What reports has she received on the performance of the Community Max scheme?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022 data-id=\u00227a07180301804e2ab00c2dbfe0fa9c8c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000014\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227a07180301804e2ab00c2dbfe0fa9c8c\u0022\u003EHon PAULA BENNETT (Minister for Social Development and Employment):\u003C/span\u003E I have received many reports on the success of the Community Max programme, and I will quote four of them: \u201CIt would be good to find a way to keep similar programmes going. There\u2019s a real gap there that needs to be filled.\u201D; \u201Cthe Community Max scheme that I visited in Thames demonstrated positive gain for the community and individuals involved,\u201D; \u201Ca step in the right direction\u201D; \u201CAny initiative that creates opportunities for young people is to be welcomed,\u201D. Those are all direct quotes from Opposition members. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000015\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002268fba70c7cc644df9dbf964941181594\u0022\u003EHon Annette King\u003C/span\u003E: Was one of those successful Community Max programmes in the Kaik\u014Dura electorate where the National member of Parliament Colin King claimed yesterday that 90 percent of the young people involved in that programme moved into full-time work; if so, why did she refuse to listen to her colleague when he asked for it to continue and said: \u201Cmy argument with the Minister for Social Development and Employment fell flat.\u201D, with the funding being removed; and do not the young people in Mr King\u2019s electorate deserve the same support?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000016\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f9a2b08105e0479b96d1a1390eaaf03f\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: Let me be quite clear that the member came to see me. He specifically asked for a meeting to talk to me about that issue and I listened. Yes, his request for Community Max to continue in that area and have additional resources\u2014of course, nothing had been cut; it was simply that the time and the money were up\u2014did fall flat. To put it in perspective, 81 young M\u0101ori people are on the unemployment benefit, not just for Blenheim but for Blenheim, Nelson, and the whole of the West Coast. As the member would be aware, there are about 21,000 of them throughout New Zealand. So some other areas are in more need. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000017\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022efeedca4c2e746e29b894214752007eb\u0022\u003EHon Annette King\u003C/span\u003E: What checks have been put in place to ensure Community Max projects using subsidised workers on short-term contracts do not undercut successful and legitimate existing businesses, putting them at risk of having to lay off permanent staff?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000018\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e6907902f7b645919fb400905da057d0\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: There is always some tension there, particularly when one is going into a programme. But as the member\u2019s own colleagues have identified, this has been incredibly successful and has been very, very well-received in communities. There are some questions around contracts, in so far as how we make sure they are community-based programmes and that they are doing stuff that would not normally be done. Certainly the reports I have seen to date have had positive results, and it has been positive in that area.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000019\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e1ead03-bf7f-496a-a02f-ce52859c58c1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f3aa292d524e46d8abc1c0f4bbb52746\u0022\u003EHekia Parata\u003C/span\u003E: Can the Minister comment on the impact Government programmes like Community Max and Job Ops have had on youth unemployment?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000020\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a6250360160b495cbf10f47dac0d43db\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: The programmes are having an effect and in some areas it has been quite significant. For example, in the last 7 weeks the number of young people on the unemployment benefit in Auckland has reduced by 7 percent. That may not sound like much but when unemployment is going up in other areas and for other groups, that is incredibly positive and is the result of Job Ops and Community Max.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000021\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221b938d3619d942779d2e10c12e539072\u0022\u003EHon Annette King\u003C/span\u003E: What has been her response to Mike T\u0101maki, who operates the T\u0101maki Heritage Group in Christchurch, who wrote to her recently telling her that the Community Max programme there has put at risk the employment of his employees, undercutting his successful business of 25 years, and how can she claim that Community Max is a great success if all the scheme does is to employ 10 young people for a short term but throws 10 permanent, loyal people on to the dole?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000022\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022676be532f1134a0fb1269553ad4f77e2\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: Yes, I have seen that letter from Mr T\u0101maki. I think there is room for 10 extra young people in Christchurch to be doing cultural activities and to be learning on the ground. I think that there is room for that, and I will encourage it. A few weeks ago this scheme was the greatest thing and we were being asked why were we not extending it, and today it is not successful and Labour thinks it is the worst thing, so I cannot quite work where Labour stands on it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000023\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ec266512-9fe8-47da-883e-48f046ee5059\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225286c2ce655b45c9b821f245e00f156e\u0022\u003ETe Ururoa Flavell\u003C/span\u003E: Has she visited or received any visit from young people enrolled on the Community Max scheme, and what has been their experience of the programme?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000024\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a78454443d80448eb06269f4b8d870ff\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: Actually, a fine member of Parliament in this House corralled me about 2 months ago and wanted me to meet some young people who were here and who were seeing successes from the Community Max programme. That member was the member who asked the question himself, Te Ururoa Flavell. There were 100 young people from the \u014Ctaki area who were here, and the light was going on for them. A real difference was being made in their lives, and positive effects from that, and the representations from the member and his party meant that we extended the programme.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000025\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002293a3799d95ca4006b999683a23448f1c\u0022\u003EHon Annette King\u003C/span\u003E: If checks do exist, could the Minister explain why a community project in \u014Cp\u014Dtiki received considerable funding to build what has been called \u201Can unsightly zigzagged path\u201D up Makeo Mountain, sacred to Ng\u0101ti Rua hap\u016B, with no authorisation from the hap\u016B and no authorisation from the landowner, who was forced to take out trespass notices to stop the project?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000026\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a6befcac14a54410a6a4ac9080e2ceaa\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: To put that one into perspective, we are talking about four young people and a supervisor. I will not get involved in local politics in a small area like that and make a judgment call on who did or who did not. I will say that that particular programme has finished; it has been completed. It went on for 6 months, and all four of those young people are in work.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000027\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002209a5b71a-ca7e-4e7c-9e09-f9e63f18aa12\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00228e44630b77f044c9a6187d77ed525a9e\u0022\u003EHon Annette King\u003C/span\u003E: In light of that answer, what has been her response to Ng\u0101ti Rua, who wrote to her on 8 July\u2014and as of 2 days ago she had not responded to them\u2014setting out their concerns for her, including asking for accountability for the damage done, the illegal removal of flora and fauna, the remains of an unsightly path, desecration of a sacred site, and the lack of respect shown for the hap\u016B and the community in that area; has she responded, and does she intend to?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000028\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002263776108-58dc-4cab-baf1-95282c61d0de\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022904b1487f1754847ba7e34a04d32d986\u0022\u003EHon PAULA BENNETT\u003C/span\u003E: That letter was received in my office on the Monday that has just been. I am advised that the department met with the parties involved yesterday, and that it has been resolved and they all feel they have had a satisfactory outcome. They are all pretty excited that four young people who did not have opportunities are now in work and are moving ahead. That is the advice I have been given.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000029\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022ff75980a32b14e40b39d5199a65e8759\u0022\u003EEconomic Challenges\u2014Addressed by Economic Programme\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022 data-id=\u00221fb20e64d0784042bf24bb91056a96be\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000030\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E2. \u003Cspan class=\u0022HpsByToc\u0022 id=\u00221fb20e64d0784042bf24bb91056a96be\u0022\u003EAARON GILMORE (National)\u003C/span\u003E to the Minister of Finance: What is the main economic challenge facing New Zealand and how is this being addressed by the Government\u2019s comprehensive economic programme?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022 data-id=\u002268455a5877cc422d8342417eb52e1c85\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000031\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002268455a5877cc422d8342417eb52e1c85\u0022\u003EHon BILL ENGLISH (Minister of Finance):\u003C/span\u003E New Zealand\u2019s main economic challenge is that our growth rate fell sharply from about 2005. The economy, from about then, became heavily reliant on unsustainable Government spending and excessive borrowing for housing speculation. So we went into recession before the global financial crisis. Our average per capita growth rate for the 3 years to 2008 was negative 0.5 percent per year. The Government has sought to address this challenge by means of a substantial tax reform programme, a multibillion-dollar infrastructure programme, sorting out the Government\u2019s finances, which were left in a mess, improving skills and education, and cutting red tape. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000032\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002218294dd496094e89abb9b60466a9ef77\u0022\u003EAaron Gilmore\u003C/span\u003E: What are the main symptoms of the significant imbalances that have been built up in the New Zealand economy over the past 5 or 6 years?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000033\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a6b1e92a3860412c971cc21adac2a20b\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: There are two main symptoms. One is that the tradables sector, which is exporters, tourism, and import-competing industries\u2014the earning side of the economy\u2014went into recession in about 2004. There have been no net new jobs in agriculture and manufacturing since 2002. Since then, however, the non-tradables sector, the spending part of Government and domestic industry, has grown by about 10 percent. The second symptom is a sharp rise in New Zealand\u2019s net external liabilities, which have grown from about $100 billion in 2000 to about $170 billion this year. They are forecast to increase to $250 billion\u2014or one-quarter of $1 trillion\u2014by 2014. Both of these trends need to be turned round.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000034\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022336bf943cb624d7caf66071f2765dfc1\u0022\u003EHon David Cunliffe\u003C/span\u003E: Given the cancellation of the much-touted programme to mine national parks and the failure so far to fund the roll-out of broadband, can he confirm that the only comprehensive economic programme left for the Government is its policy to reduce or destroy labour rights?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000035\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022efa596d9836f4a51a315c7ff61c84aa8\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: No. Our programme needs to be comprehensive in order to turn round the mismanagement of the previous Labour Government, which caused the significant imbalances that I just talked about. From 2002 there have been no new jobs in agriculture and manufacturing, although on the other hand the Government sector and domestic housing, spending, and consumption spiralled out of control.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000036\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002262169264f47241eb9d7f3fac90cffa5c\u0022\u003EAaron Gilmore\u003C/span\u003E: What early signs of progress has he seen that some of New Zealand\u2019s economic imbalances are being turned round?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000037\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002273c99c47d856469883d3ca23f3219319\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: First, the economy is actually growing now instead of shrinking, as it was in 2007 and 2008. The tradables sector has grown by 3.4 percent in the 9 months to March 2010\u2014faster than the non-tradables sector. That would be the first time since December 2002 that our earning capacity has grown faster than our spending. Finally, New Zealanders are being more careful with their spending. Per capita private sector consumption has grown by only 1 percent in the past year, after consistently increasing at above 4 percent per year between 2002 and 2007. Household debt is also easing, after a decade of rapid growth under the previous Government.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000038\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e981eb387e354d768312ac986615c343\u0022\u003EHon David Cunliffe\u003C/span\u003E: Is it not true that skills and technology are some of the primary drivers of productivity, and that productivity is one of the key issues that is holding back New Zealand; if so, why did the Government scrap the research and development tax credits, cut the Skills Strategy, cut education, and cut the Fast Forward fund?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000039\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224389504938c84ff0b6b793368ef9cde4\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: We ditched a whole lot of verbose, meaningless strategies that the previous Labour Government spent millions of dollars on workshopping, drafting, redrafting, and publishing, because none of them had worked. The evidence for that is that under the previous Government, growth virtually stopped, our spending went out of control, our earning capacity was throttled, and New Zealand built up record amounts of debt. We are changing that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000040\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b62b1e3187e741369955650c9cf8bcff\u0022\u003EAaron Gilmore\u003C/span\u003E: What economic policy prescription would put these early signs of recovery at risk and cost thousands of jobs?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000041\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224c025a007f414fc597a3ad19b50f81de\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: Pretty much anything that the previous Labour Government did, and anything that the current Opposition promises to do.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000042\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022b7a76e3e2ee34da8a0f155ba62fb3c10\u0022\u003EMining in Conservation Areas\u2014GDP Growth Projections\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022 data-id=\u00229431967cdd134a61b3a137f69c8e24ff\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000043\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E3. \u003Cspan class=\u0022HpsByToc\u0022 id=\u00229431967cdd134a61b3a137f69c8e24ff\u0022\u003EHon DAVID CUNLIFFE (Labour\u2014New Lynn)\u003C/span\u003E to the Minister of Finance: By what amount will the cancellation of the Government\u2019s plans to mine sensitive conservation land reduce GDP growth projections in the next 5 years?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022 data-id=\u002269a29012993f4b49b16df8576cf0880c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000044\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002269a29012993f4b49b16df8576cf0880c\u0022\u003EHon BILL ENGLISH (Minister of Finance):\u003C/span\u003E It will not have any effect.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000045\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e434a43915eb404fbce8daef31f2d3fc\u0022\u003EHon David Cunliffe\u003C/span\u003E: Why, if there was no projected GDP impact from mining, did John Key describe it as central to the Government\u2019s plans for a step change in the economy?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000046\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002229adb1adf7dd4a979019940ecfdd863b\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: Because we have a visionary and aspirational Prime Minister who can see what this economy needs over the next 10 years. That is backed up by a Minister of Energy and Resources who has done an excellent job of building a profile of that industry. After the Government\u2019s decisions on schedule 4, investors now have certainty and encouragement to expand mining and resources significantly. I expect that it will show up in the GDP figures in the future.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000047\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002250b9bdb6bdb6413c899f691478f3f37f\u0022\u003EHon David Cunliffe\u003C/span\u003E: What contribution to GDP growth projections will the proposed fire-at-will labour legislation make, and is it true that the Government\u2019s step change plan is now centred on reducing the cost of labour?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000048\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220b09c91525c24798afca232873dae616\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: I do not know what legislation the member is referring to as \u201Cfire-at-will\u201D, but I can confirm for the member that the Government has announced that it will extend the 90-day trial period. We believe it will give businesses, particularly smaller business, more confidence to hire, and give employees who need it a better opportunity to get their foot on the bottom rung of the ladder.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000049\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00220bfa5b74-8933-458a-99d4-bbd75d9898d0\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002240927737602e4bd4a3c5ef68fd2892cb\u0022\u003EChris Auchinvole\u003C/span\u003E: How has the output of mining and related sectors changed in recent years?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000050\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022befafd31b25f4aa28076c40db307c97a\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: Mining is one of the sectors that exports and competes directly with the rest of the world. This sector performed poorly under Labour\u2019s mismanagement. Currently output from tradable industries remains below 2002 levels. By contrast, output from non-tradable sectors has grown by over 20 percent. The mining analogy is apt. Labour mined the economy for all it was worth with no thought to the future. It left the country with a pile of toxic sludge, and we are cleaning it up.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000051\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221d553034f8264061b4985b4f22148e0f\u0022\u003EHon David Cunliffe\u003C/span\u003E: Given the cancellation of plans to mine sensitive conservation areas, the tyres of the national cycleway going flat, and the end of the 9-day working fortnight, is the dangerous proposal to reduce labour rights now the centrepiece of the Government\u2019s strategy for jobs and growth?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000052\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022603bdcf9a3f148b4974e5bd62b9e4d5d\u0022\u003EHon BILL ENGLISH\u003C/span\u003E: One of the centrepieces of the Government\u2019s strategy for jobs and growth is the multibillion-dollar infrastructure investment programme, which is employing thousands of skilled New Zealanders at a time when no one else would be employing them. Another policy at the centre of our plan to turn round the economy is the significant decreases in income taxes and a switch to consumption taxes. We believe, unlike that party, that savings, investment, work, and exports are good, and that over-consumption and too much borrowing are bad. I understand that the Opposition has the opposite view.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000053\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022adcefcbef128490dae707cf2dfb866bf\u0022\u003EAquaculture\u2014Improvements\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022 data-id=\u0022a3252768f84942bc9b00c561a6d9fd28\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000054\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003E4. \u003Cspan class=\u0022HpsByToc\u0022 id=\u0022a3252768f84942bc9b00c561a6d9fd28\u0022\u003ESHANE ARDERN (National\u2014Taranaki - King Country)\u003C/span\u003E to the Minister of Fisheries and Aquaculture: What recent announcements has he made about aquaculture?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022cbb83aab-9566-44c4-9029-8bda4aaca7f2\u0022 data-id=\u0022db08026773534b6f8ca336c0075df979\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000055\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022cbb83aab-9566-44c4-9029-8bda4aaca7f2\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022db08026773534b6f8ca336c0075df979\u0022\u003EHon PHIL HEATLEY (Minister of Fisheries and Aquaculture):\u003C/span\u003E The Government has today announced further steps of aquaculture reform, which is a key priority for our economic growth agenda. These decisions will boost aquaculture\u2019s potential to reach the industry\u2019s goal of $1 billion in annual sales by 2025. They are about enabling the sustainable use of our natural resources to build the economy, to create new jobs, and to get more people into work, especially in the regions. I thank the Ministry of Economic Development for working with the Ministry of Fisheries on this matter.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000056\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022223059d9181f4ed9a180d874fd213341\u0022\u003EShane Ardern\u003C/span\u003E: What does this mean for the current backlog of existing aquaculture applications?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000057\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022cbb83aab-9566-44c4-9029-8bda4aaca7f2\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022137d5a07a9c447d2ae88049ea4508bdd\u0022\u003EHon PHIL HEATLEY\u003C/span\u003E: Currently more than 60 applications relating to an area exceeding 8,000 hectares are awaiting a decision. Under the previous Government they were waiting, waiting, and waiting. But now we will see those applications progress. This reform will effectively free-up the bottleneck that kept the industry\u2019s growth in limbo for many, many years while the previous Government talked, talked, and talked.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000058\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00222102c1523f6e49d2979ae8a2f68ee0b1\u0022\u003EHealth Services\u2014Cuts\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022 data-id=\u0022e3e7cba27a4443b69d622a2f23988647\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000059\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022\u003E5. \u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e3e7cba27a4443b69d622a2f23988647\u0022\u003EHon RUTH DYSON (Labour\u2014Port Hills)\u003C/span\u003E to the Minister of Health: Is he comfortable with the numerous announcements of health cuts in the last 20 months?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022 data-id=\u0022c9a3bf377f384e67b1f3b08e190d650e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000060\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c9a3bf377f384e67b1f3b08e190d650e\u0022\u003EHon PETER DUNNE (Associate Minister of Health)\u003C/span\u003E on behalf of the Minister of Health: There have been no cuts in the health budget in the last 20 months. In fact, Government funding for health services has increased by $1.3 billion in that time, $1 billion of which has gone to district health boards.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000061\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002231e4f70016a54ead9511162272b23719\u0022\u003EHon Ruth Dyson\u003C/span\u003E: Does he think that the people who are waiting in corridors without even a corridor bed at North Shore Hospital\u2019s emergency department will agree with him about no health cuts, or will they find his total lack of action to help them rather confusing, given his noisy attacks against health staff at that hospital on this very issue in the winter of 2007?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000062\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022667a267089904b86a068c3aee8861d05\u0022\u003EHon PETER DUNNE\u003C/span\u003E: I should point out to the member that funding for that particular district health board has increased by over $100 million in the last couple of years. The issue of how it deploys that funding is a matter for the district health board. Perhaps I could give the member an analogy. This is about reprioritisation, in just the same way as the previous Government reprioritised $110 million out of the health system just before the last election. [Interruption] \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000063\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ac169d29-4849-42c2-a4a7-f344fd416503\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d53fc5c8d5c0468b9a2bcd25069dbcbe\u0022\u003EMr SPEAKER\u003C/span\u003E: The member has to have a reasonable chance to ask a supplementary question.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000064\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022200681e3650d44caba8c6c6378515a5c\u0022\u003EHon Ruth Dyson\u003C/span\u003E: What does he say to the nurses in Taihape, at \u014Ctaihape Health, who have been told to take a 30 percent pay cut or the hospital in which they work will be closed?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000065\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220c714a071c234feb9952e7002affa212\u0022\u003EHon PETER DUNNE\u003C/span\u003E: The advice that I have received is that that matter is currently the subject of negotiations with the Whanganui District Health Board. It is grossly inappropriate for Ministers to intervene in an industrial relations process\u2014something that I thought the members of the party opposite would well understand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000066\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022cfdabe42-521a-4dca-afab-3e781731a130\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002202bd7ac6bf824458bd5cb75f89d23d19\u0022\u003EDr Paul Hutchison\u003C/span\u003E: What recent reports has he seen on improved front-line services?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000067\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d0861e9afe3c48f9add703f5c85a9576\u0022\u003EHon PETER DUNNE\u003C/span\u003E: I have seen some reports that indicate a number of improvements over the last 20 months. For instance, we now have shorter emergency department waiting-times, a record rise of some 13,000 patients getting additional elective surgery last year, shorter waiting-times for cancer treatment, higher levels of fully immunised 2-year-olds, and over 240,000 New Zealanders now getting access to medicines that they were not getting previously.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000068\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002261c86d61bb2f4b209f5870d02a42178d\u0022\u003EHon Ruth Dyson\u003C/span\u003E: What does he say to the good people of Taihape, who face losing all their locally delivered front-line health services if their hospital is closed; or will he wash his hands of that responsibility as well?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000069\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cd28e982ac8f4a37b20a9e71cb1d64d1\u0022\u003EHon PETER DUNNE\u003C/span\u003E: The member is jumping to a number of unwarranted conclusions. There is no suggestion that the closure of that hospital is in the pipeline. The reality is that the matter of the processes that are being gone through between the staff of the district health board and their employer should be left to resolve itself.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000070\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e09c1fb3395045a4aeb9192989c379e8\u0022\u003EHon Ruth Dyson\u003C/span\u003E: What, if anything, will he do to support the elderly man who has dementia and Parkinson\u2019s disease who is being held in Rimutaka Prison not because of his risk to the community but because nobody can find a health-funded home for him to live in?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000071\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f555a23a-d230-4f03-80ba-a44e6ec8bd29\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c7a77215b2834ff9a76293b92b14f926\u0022\u003EHon PETER DUNNE\u003C/span\u003E: If the member cares to take up that case directly with the Minister\u2019s office, it will be addressed.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000072\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022848812c089b64e1abdb021915b739d75\u0022\u003EGovernment Procurement\u2014Reform\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022 data-id=\u00222a5b531e5f7845a4ada8a4168a202d3b\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000073\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022\u003E6. \u003Cspan class=\u0022HpsByToc\u0022 id=\u00222a5b531e5f7845a4ada8a4168a202d3b\u0022\u003EJO GOODHEW (National\u2014Rangitata)\u003C/span\u003E to the Minister for Economic Development: How will the Government\u2019s procurement reforms provide value for money?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u0022927f81216a3e4cb4929c58b6aac9179e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000074\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022927f81216a3e4cb4929c58b6aac9179e\u0022\u003EHon GERRY BROWNLEE (Minister for Economic Development):\u003C/span\u003E Yesterday I announced the awarding of the first of a series of State sector - wide contracts, with more to come into effect progressively during July. This will create great value for money and will save the taxpayer millions of dollars.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000075\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022437285eda86f4d1db11d9abbeeba1dee\u0022\u003EJo Goodhew\u003C/span\u003E: What is the targeted saving to the Government once the first four contracts are in place?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000076\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a74aeabc27ed4c638376d8e35e291824\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: Once all of the contracts are in place they are expected to save more than $115 million over the next 5 years. This harnesses the collective buying power of the whole of the State sector. The benefit to the Government and to taxpayers will be significant, gaining the best value for money.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000077\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00222aa0b524-c38d-45aa-bd5b-99c5927085f4\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00229dfbcb809c3944f3af0a2da058c0247e\u0022\u003EClare Curran\u003C/span\u003E: What process did he use to ensure that New Zealand - owned companies were given full consideration as part of the tendering process?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000078\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022da76e5002981440fa8842b2ba89b92a8\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: I am confident that the department has used appropriate tendering procedures to ensure that New Zealand manufacturers had a fair go. But I would say that if the member can show me that she uses New Zealand - manufactured computers, laptops, single multifunctional printing devices, photocopiers, printers, passenger vehicles\u2014which, I understand, have not been produced in New Zealand for some years now\u2014and office consumerables, then I would be interested to know.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000079\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00220f924f2864d746569f69ba762d5e55ec\u0022\u003EMining in Conservation Areas\u2014Minister\u2019s Intentions\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u00226d92019468f14c10a60c76e823f182e9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000080\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E7. \u003Cspan class=\u0022HpsByToc\u0022 id=\u00226d92019468f14c10a60c76e823f182e9\u0022\u003EHon DAVID PARKER (Labour)\u003C/span\u003E to the Minister for Economic Development: Does he agree with the Dominion Post article \u201CFrom step change to a giant U-turn\u201D regarding the Government\u2019s plans for mining, and what plans in his capacity as Minister for Economic Development does he have to replace that step change?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u00229ce08e0febca4979af1e4194c04617d7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000081\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00229ce08e0febca4979af1e4194c04617d7\u0022\u003EHon GERRY BROWNLEE (Minister for Economic Development):\u003C/span\u003E No; and if the member had been listening yesterday he would have heard a list of the initiatives this Government is undertaking to enhance the development of the New Zealand economy. Achieving an economic step change for New Zealand is not reliant on one single sector of the economy, as the member seems to wish to suggest. We want a balanced economy with widespread markets and a broad range of products and services. The member should know that one swallow a summer does not make. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000082\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b2c190ea52dd43e78286be7faf0c0c9c\u0022\u003EHon David Parker\u003C/span\u003E: Has the Minister seen the pages on his own Ministry of Economic Development website entitled \u201CRegional Development\u201D and \u201CIndustry Development\u201D, which list about eight initiatives, all of which were put in place under Labour, with no new additions from him?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000083\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a8602c29e96f4bb98d594a18b42942c0\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: I have seen the website. I am aware of those many initiatives, but I would say that the one stark difference between this Government and the Labour Government is that where those programmes have been seen to have value and to be able to make a difference, we have funded them; Labour did not. For 9 years it did not fund them.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000084\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d9b5baf4ac4b4beca07d29731994c9cb\u0022\u003EHon David Parker\u003C/span\u003E: Has the Minister seen the very lonely update on his own ministry\u2019s website under \u201CNZ Economic Development\u2014Recent Updates\u201D, which has only one entry, the Large Budget Screen Production Grant introduced under Labour and retained without amendment under his busy watch?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000085\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002212d7f0c94fe3469d9483472a93946557\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: The Ministry of Economic Development website is an excellent place to find out what that Government department is doing, and I recommend others look, as well.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000086\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022a744a9a7-a2e8-401b-abfb-aec22a3818c8\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ad090c8f8e8c43a5b3cb9658625e97e0\u0022\u003EKatrina Shanks\u003C/span\u003E: How can the Government assist the development of the New Zealand economy?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000087\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022296d8f45201e4423b3d158a2dadf2088\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: The economic step change in New Zealand will be achieved by working towards developing a more dynamic economy with a diverse range of export sectors and a range of markets for those goods. I simply ask the member to consider exactly what is going on in the New Zealand economy at the moment. Prior to the election, we had 5 years of going backwards, 5 years of negative growth, and 5 years of exports going down the tube. We now have projections of 170,000 new jobs over the next 4 years and household incomes rising over that time by some $7,000, and, as Mr English explained to the House before, for the first time since 2002 the tradable sector now exceeds the non-tradables. These people do not have a clue how an economy would work.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000088\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225adf068936e0410498ae5efc7220e0fc\u0022\u003EHon David Parker\u003C/span\u003E: Why, when John Key last December said that there would be many new moves in the economic development space and promised a step change to catch up with Australia, is there scant evidence of the plan and no targets or dates before 2025 against which National is willing to be judged?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000089\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002287acd7077b5443e283b44ec46e44be1a\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: I have just outlined two very, very significant measures that New Zealanders tangibly feel. I think the member needs to stop believing his own rhetoric, stop puddling around in his dream that one can change the economy by winning Lotto, and look at some of the real things that this Government is doing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000090\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022faf7c04c11b3488483269ff068703578\u0022\u003EHon David Parker\u003C/span\u003E: I seek leave to table copies of the pages of the Ministry of Economic Development website\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000091\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ac169d29-4849-42c2-a4a7-f344fd416503\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a144e79007634994a74fb55117465eca\u0022\u003EMr SPEAKER\u003C/span\u003E: We will not be doing that. It is available to all members.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000092\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00227d3fcf89bd1a4006ab1eb3f5ad8e9a7a\u0022\u003EViolence, Domestic\u2014Police Safety Orders Issued Since 1 July 2010\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00225f1453f8-c44e-4ce6-b699-64d600322276\u0022 data-id=\u00221fb6acfd09eb4fed8c8b31a428f70ac8\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000093\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225f1453f8-c44e-4ce6-b699-64d600322276\u0022\u003E8. \u003Cspan class=\u0022HpsByToc\u0022 id=\u00221fb6acfd09eb4fed8c8b31a428f70ac8\u0022\u003ECHESTER BORROWS (National\u2014Whanganui)\u003C/span\u003E to the Minister of Justice: How many on-the-spot police safety orders for victims of domestic violence have been issued since the Government\u2019s amendments to the Domestic Violence Act came into force on 1 July 2010?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022803002d1-e810-4bd8-b8e7-2e97d0d6f626\u0022 data-id=\u0022266d3d5888b64994a8ca28e96718f894\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000094\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022803002d1-e810-4bd8-b8e7-2e97d0d6f626\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022266d3d5888b64994a8ca28e96718f894\u0022\u003EHon SIMON POWER (Minister of Justice):\u003C/span\u003E I am advised that between 1 and 21 July the police issued 198 safety orders. These orders give the police the power to remove a potentially violent person from the home for up to 5 days in situations where there are no immediate grounds for arrest but where, in their judgment, there is a likelihood of further violence occurring. I see these orders as being a vital tool, because they are designed to stop domestic violence from escalating and they tackle the problem before it could be too late.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000095\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00225f1453f8-c44e-4ce6-b699-64d600322276\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022fd7cadc9cbec445d92d560e632eac93d\u0022\u003EChester Borrows\u003C/span\u003E: How many police safety orders have been breached so far?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000096\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022803002d1-e810-4bd8-b8e7-2e97d0d6f626\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002294010d83649d48119d206471a23963a9\u0022\u003EHon SIMON POWER\u003C/span\u003E: Sixteen of the 198 police safety orders issued since 1 July have been breached. That means that, to date, in 92 percent of cases the orders are working as intended. I would like to make it clear that any breach is serious and unacceptable. However, I am confident that these orders will continue to be vigilantly policed.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000097\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00220ee528dc-7870-4553-95ed-5ec0cab60f07\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cd2a0b7bcbdb48f08d7f8ed9d125c60d\u0022\u003ECatherine Delahunty\u003C/span\u003E: T\u0113n\u0101 koe, Mr Speaker. T\u0113n\u0101 koutou katoa. Is the Minister concerned that the Ministry of Justice is not able to provide statistics on domestic violence perpetrators who have been issued with protection orders more than once, and that victims of domestic violence have to pay for their protection orders?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000098\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022803002d1-e810-4bd8-b8e7-2e97d0d6f626\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d0a3845419614e9e845950af106b95d2\u0022\u003EHon SIMON POWER\u003C/span\u003E: The original question was about police safety orders, not protection orders. The two are different. But I am happy to take the member\u2019s question and look more closely at it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000099\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022b70f155bbccd41e7b56620ac37098b27\u0022\u003EInterest Rates\u2014Lending Practices and Vulnerable Consumers\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022 data-id=\u0022578a35c63b9e47f697e7da243b2ce082\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000100\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003E9. \u003Cspan class=\u0022HpsByToc\u0022 id=\u0022578a35c63b9e47f697e7da243b2ce082\u0022\u003ECAROL BEAUMONT (Labour)\u003C/span\u003E to the Minister of Consumer Affairs: Does she think that there is a serious problem with fringe lenders who are lending to vulnerable consumers at extremely high rates of interest or in an irresponsible manner?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022 data-id=\u0022da6451701dc54c63be941c8636c26258\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000101\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022da6451701dc54c63be941c8636c26258\u0022\u003EHon HEATHER ROY (Minister of Consumer Affairs):\u003C/span\u003E Yes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000102\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002234bf42b3bb734942b413df8a6c3ad9a8\u0022\u003ECarol Beaumont\u003C/span\u003E: Is the Minister willing to work with Labour and other parties to find real solutions to the exploitation caused by loan shark activities?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000103\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002213662dab7dc34d1ab7cb97a0a8a21c88\u0022\u003EHon HEATHER ROY\u003C/span\u003E: I am willing to talk to anyone, and I have talked with the member on numerous occasions. The fact is that credit and fringe lending is a very complex area that requires comprehensive solutions. As I have said to the member, although her Credit Reforms (Responsible Lending) Bill\u2014which was debated in the House last night\u2014had considerable merit, it was too limited in scope. There would have been undesirable, unintended consequences from its implementation that would have most affected the very people whom it aimed to protect. The Government already has a large number of measures in place to deal with the issues that were raised in Ms Beaumont\u2019s bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000104\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a28243f4650243fabaf6ccf67d256b97\u0022\u003ECarol Beaumont\u003C/span\u003E: Why has the Minister delayed work on the review of the Credit Contracts and Consumer Finance Act, which she has consistently provided as an example of the Government\u2019s work on dealing with the problem of fringe lending?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000105\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022fe5fcf803fca4ad9b53a909b1315f8ef\u0022\u003EHon HEATHER ROY\u003C/span\u003E: The review of the Credit Contracts and Consumer Finance Act, which the member is referring to, has not been deprioritised, as she has claimed a number of times. It has been reprioritised alongside the consumer law reform. We need to fix the issues in the Credit Contracts and Consumer Finance Act and the Credit (Repossession) Act that are not working, and there needs to be thorough analysis of the impacts on credit providers and consumers.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000106\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226e1ead03-bf7f-496a-a02f-ce52859c58c1\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002287d56d2171dd4d3b966daa95fd5675f8\u0022\u003EHekia Parata\u003C/span\u003E: What legislative reform is the Minister considering that will provide enhanced protection against usurious lending practices for all New Zealanders, and what assistance is currently available until these changes are implemented?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000107\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223fe38f402ff44ba2adb37861ef0b721f\u0022\u003EHon HEATHER ROY\u003C/span\u003E: The Government is looking at comprehensive measures to address these issues with real solutions. That includes a review of the Credit Contracts and Consumer Finance Act, work in progress to address problems with credit repossession law, and work in progress to extend the hardship provisions in the current law. There is also work as part of the securities law review that looks at measures to ensure that consumers are treated fairly. By 1 December financial service providers must be registered and belong to a disputes resolution scheme. My consumer law reform process is under way, and the Minister of Commerce and I are working closely to ensure that fringe lenders and unscrupulous lending processes and practices are covered by these measures.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000108\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00228deeb45b485e4029b31bfc1dd4274bbe\u0022\u003ECarol Beaumont\u003C/span\u003E: When will the Minister stop reviewing and start doing in relation to the harmful activities of loan sharks, who cause damage to some of our most vulnerable families?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000109\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022852c4f0b723f45cf9ca18785ab255c2d\u0022\u003EHon HEATHER ROY\u003C/span\u003E: I think the member did not hear the answer to the previous question. We have a number of initiatives under way. The financial service providers legislation introduced by the previous Government, will come into effect on 1 December in relation to the registering of financial service providers. In order to register, all financial service providers must belong to a disputes resolution scheme. The consumer law reform process is under way.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000110\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002275a05f96-2474-4c90-a6ea-cf7b5798e03e\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002225b09743fc9240fa8ab1c94ab72631c0\u0022\u003EHon Ruth Dyson\u003C/span\u003E: What are you doing, though?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000111\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226c1d5df8-ac1d-4ce1-a778-202845cfc69f\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223eafce014dd5476f8843abf7039d8c1f\u0022\u003EHon HEATHER ROY\u003C/span\u003E: This is exactly what I am doing, if the member would like to listen. The consumer law reform process will consider measures to protect vulnerable borrowers, such as protection against unfair contract terms and unconscionable content. It is important that these things happen quickly, and I am working as fast as I can to ensure that they do.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000112\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00223578e539b89944b7b8f93b468367a757\u0022\u003EPetroleum Resource\u2014Customary Rights\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022 data-id=\u0022250cbbc6a665415d91efaf6e0d54aedc\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000113\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E10. \u003Cspan class=\u0022HpsByToc\u0022 id=\u0022250cbbc6a665415d91efaf6e0d54aedc\u0022\u003EDAVID CLENDON (Green)\u003C/span\u003E to the Minister of Energy and Resources: Does he agree with Crown Minerals\u2019 testimony to the Waitangi Tribunal\u2019s inquiry into the management of the petroleum resource, which confirmed that the Crown has an obligation under international law and the Treaty of Waitangi to investigate claims of customary rights?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u0022741b112e5552454fa509b8ab252f39b7\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000114\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022741b112e5552454fa509b8ab252f39b7\u0022\u003EHon GERRY BROWNLEE (Minister of Energy and Resources):\u003C/span\u003E I understand that the comments referred to by the member came at the end of a very long cross-examination in front of the Waitangi Tribunal, and I do not want to make any comment on that matter at all. But I say that New Zealand is a sovereign coastal State and the Crown is therefore the only legal person that has any right to explore, exploit, conserve, and manage natural resources on the continental shelf as recognised by the United Nations Convention on the Law of the Sea and ratified by the Continental Shelf Act 1964. I suggest that if the member wants to argue that the United Nations has it wrong, he needs to take that argument to a different forum. He may also like to consult with his colleague Dr Kennedy Graham, who is an expert on the effect that United Nations declarations such as this one can have.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000115\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224dee7b0c92974eaf9563233f4b692123\u0022\u003EDavid Clendon\u003C/span\u003E: Does the Minister agree with Crown Minerals\u2019 testimony that the ownership of oil in the exclusive economic zone is \u201Ca live issue\u201D?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000116\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002232092622d59e4a2bab0ac85fb0d2ddad\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: No, I do not. Section 10 of the Crown Minerals Act reserves all petroleum, including that in the foreshore and seabed and the outer limits of the territorial sea. Section 5A of the Continental Shelf Act refers back to the United Nations Convention on the Law of the Sea, which I spoke of before, and makes it clear that all rights that are exercisable by New Zealand in respect of the continental shelf and its natural resources for the purposes of exploring the shelf and exploiting its resources are vested in the Crown.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000117\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e2e2ee61-b3b9-4a89-bcc3-5b7be76c5825\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022f036b0d0702a47158a0d8c1c733490bf\u0022\u003ERahui Katene\u003C/span\u003E: Is the Minister aware that in its 2003 report the Waitangi Tribunal found that the expropriation of the pre-existing M\u0101ori rights to petroleum arose from a context that was riddled with breaches of the Treaty; and what will he do to assure iwi that further breaches will not be created either through his actions or those of Crown Minerals?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000118\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002207cdae96535c4097b223e78e142bbe5b\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: Firstly, there is no intention to overturn the 1937 Act that nationalised the particular minerals that the member mentions. As for ongoing participation, I have given in verbal form my commitment to the aggrieved parties in the most recent case that we would do better in the future.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000119\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002240b7645bc928408c906ce534f53fd0f7\u0022\u003EDavid Clendon\u003C/span\u003E: Does the Minister agree with Crown Minerals\u2019 testimony to the Waitangi Tribunal that the Crown does not own the oil in our exclusive economic zone?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000120\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220ee1e38002c9439ba7b96d3b143812d7\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: No. I refer the member to the answer I gave just a few minutes ago.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000121\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022187e4099-cc16-4bb8-8379-82c881af1724\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002280dad45be26546eaba415600dfbf045a\u0022\u003EDavid Garrett\u003C/span\u003E: How can he possibly disagree with the contention that the Crown has an obligation under international law to investigate M\u0101ori claims to petroleum, when he is part of a Government that has signed up to the United Nations Declaration on the Rights of Indigenous Peoples?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000122\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227d4fa639a56644df849bad1830892ddf\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: Quite simply, because I do not entangle the requirements of both declarations.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000123\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00223f951a9f833f4864b88e24a3d6b38866\u0022\u003EDavid Clendon\u003C/span\u003E: Is the Minister saying Crown Minerals was wrong when it said the Crown does not own the oil in our exclusive economic zone?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000124\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220687cbec36d948d6a49da36d0d727eef\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: The questioner asks me to agree with the proposition he set out in his primary question. I made the point that I will not make a comment on that, and I will not do so now.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000125\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022187e4099-cc16-4bb8-8379-82c881af1724\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00222682d887b8f840e78b0d39ea319b4515\u0022\u003EDavid Garrett\u003C/span\u003E: Can he rule out granting compensation to iwi for the confiscation of petroleum resources, as required by articles 10, 26, and 32 of the United Nations Declaration on the Rights of Indigenous Peoples; if not, why not?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000126\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00220d094298f0f04c638b9037209b212ce6\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: Quite apart from the fact that domestic law takes precedence over United Nations law, although United Nations declarations can clearly give credence to domestic law, I am afraid that I am not able to bind any future Government.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000127\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022749d1b20e17948af926dd00c905ec4bf\u0022\u003EDavid Clendon\u003C/span\u003E: Does the Minister believe he acted appropriately when he disregarded a claim raised by Te Aup\u014Duri iwi about ownership of oil off the Reinga coast?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000128\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ec9b215644c344d895f68985cc9de410\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: No. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000129\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00220e7e8da2-a6a1-41bb-aeb0-a49be255a293\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022357de3284978480e83a262f84b9b51d6\u0022\u003EHon Nanaia Mahuta\u003C/span\u003E: How does the Minister reconcile his answers with the requirement to engagement effectively with iwi, and with the Government\u2019s expressed support of the Declaration of the Rights of Indigenous Peoples; and why is the Minister ignoring comments of support party MP Hone Harawira with regard to deep-sea mining in Northland?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000130\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022ccd9bfedd8dd4decbc56b0d1e26a5cc8\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: The Government is currently engaged in a very, very constructive dialogue with our support partner the M\u0101ori Party about the future of the foreshore and seabed. Quite clearly, customary rights and territorial rights will be better recognised under the new arrangements than the previous Government was prepared to allow.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000131\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00222c3088f7ed34464fb79394c8cddb91dc\u0022\u003EDavid Clendon\u003C/span\u003E: Will the Minister commit to undertake a thorough investigation of Te Aup\u014Duri\u2019s claim to ownership of the oil in the Reinga Basin, and will he commit to reporting back promptly to them the findings of that investigation?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000132\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c37492e2ad1e47ac833cf05e2106b9f0\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: No.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000133\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022cf61ac04e2074a69a28e220c5d845b6d\u0022\u003EBiofuels\u2014Biodiesel Grants Scheme\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022 data-id=\u0022d83742042c64410da521b3fa42a1ff71\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000134\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003E11. \u003Cspan class=\u0022HpsByToc\u0022 id=\u0022d83742042c64410da521b3fa42a1ff71\u0022\u003ECHRIS HIPKINS (Labour\u2014Rimutaka)\u003C/span\u003E to the Minister of Energy and Resources: How much funding has been granted to date under the Biodiesel Grants Scheme, and is he satisfied with the scheme\u2019s progress?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022 data-id=\u00224b2f6b911f644ebca539500120371f7a\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000135\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00224b2f6b911f644ebca539500120371f7a\u0022\u003EHon GERRY BROWNLEE (Minister of Energy and Resources):\u003C/span\u003E So far the figure granted is $230,332. I do not want to express either satisfaction or dissatisfaction with that. Rather, I wish to express my profound disappointment that an industry that promised so much has delivered so little despite such an extraordinary available subsidy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000136\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a4741838077f4b4b94efa375df946cb0\u0022\u003EChris Hipkins\u003C/span\u003E: How many of the 240 jobs he claimed in May last year would be created by the Biodiesel Grants Scheme have actually eventuated, particularly given that only five companies have signed up for the scheme, no new companies have signed up since July last year, and less than $230,000 of the $36 million has actually been taken up?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000137\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221dd67ff767c943fb85fb918c8447b27e\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: As I said, I am extremely disappointed by the failure of this industry to respond to the Government\u2019s stimulus. I think the fact that it has failed serves as testimony to the mistruths put in front of this House by the member and his colleagues.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000138\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002259424357c4964337b3cd0f490264155b\u0022\u003EChris Hipkins\u003C/span\u003E: Does he stand by his statement in the House that there is no doubt that biofuels will play a big part in our energy mix in the future; if so, what is his response to Ecodiesel chairperson\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000139\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ac169d29-4849-42c2-a4a7-f344fd416503\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022fb1083e5cda8461c9410476ef0ee8e8e\u0022\u003EMr SPEAKER\u003C/span\u003E: I am on my feet. Whoever interjected just then is lucky; I could not see who it was. All of us at times get a frog in our throats and lose our voices. I invite the member to have a drink of water, and I invite members to give him a reasonable chance to ask his question.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000140\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002284a8beb437334e4aae335c148bbf7b64\u0022\u003EChris Hipkins\u003C/span\u003E: Does he stand by his statement to the House that there is no doubt that biofuels will play a big part in our energy mix in the future; if so, what is his response to Ecodiesel chairperson Lindsay Fergusson\u2019s comment that the scheme will work only for small-scale producers and those who \u201Care not the future of the bio-diesel industry in New Zealand.\u201D?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000141\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022283ae73e432a40b49c2e186a37c7224e\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: I stand by my statement that bio-diesel will play a bigger role in the future, simply because I think that that is what will happen. I do not put a time frame on that. The reality is that if people do not buy the product, we cannot sell it. That is the problem the industry has. It has failed to sell the product.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000142\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221dbd2811-8e58-4ffb-848d-31c0eaa9690a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002262ac5367e3404489b7f20b55f333c979\u0022\u003EChris Hipkins\u003C/span\u003E: Why should the public of New Zealand have any confidence in anything that this Minister says when his Biodiesel Grants Scheme has been a total flop, the revised Energy Strategy he has been promising for 18 months has not eventuated, his Electricity Industry Bill has been panned by critics, and his plan to mine national parks has been left in tatters; or is this just the usual standard of ministerial performance people can expect under a National Government?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000143\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a7c1beda2292488d91e1880d5dfafce4\u0022\u003EHon GERRY BROWNLEE\u003C/span\u003E: I think the crackly voice performance we heard from the member before indicates that he is a very young man, and none of what he said is true.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000144\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022225b168fd70047f79e0e49ec1b8be5a8\u0022\u003ERoad User Charges System\u2014Improvements\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00228a1cb04e-8a86-44d1-9004-6e158e220339\u0022 data-id=\u0022968b21abc1b74825a330be46183aa127\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000145\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00228a1cb04e-8a86-44d1-9004-6e158e220339\u0022\u003E12. \u003Cspan class=\u0022HpsByToc\u0022 id=\u0022968b21abc1b74825a330be46183aa127\u0022\u003ETIM MACINDOE (National\u2014Hamilton West)\u003C/span\u003E to the Minister of Transport: What efficiency improvements is the Government making to the road transport system?\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00224a244152-977c-48d2-bf53-4f3a369a27a9\u0022 data-id=\u0022ef9fe4bb47724e71910b490f8134f777\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000146\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a244152-977c-48d2-bf53-4f3a369a27a9\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022ef9fe4bb47724e71910b490f8134f777\u0022\u003EHon STEVEN JOYCE (Minister of Transport):\u003C/span\u003E The Government has announced major changes to the road-user charges system that will simplify and modernise a key part of New Zealand\u2019s transport operation. Changing the definition of licence weights, removing supplementary licences, removing the confusing time licence system, and simplifying the list of exempted vehicles will all reduce compliance costs and simplify administration processes for industry and Government. This will reduce transport costs for our businesses and help make getting exports to markets cheaper.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000147\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00228a1cb04e-8a86-44d1-9004-6e158e220339\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022e219a269a8404121ab7219fd4e2eec03\u0022\u003ETim Macindoe\u003C/span\u003E: What has been the response of the transport industry to these changes?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000148\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a244152-977c-48d2-bf53-4f3a369a27a9\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002284e1259e9bec4962adbd1793e75a9d7b\u0022\u003EHon STEVEN JOYCE\u003C/span\u003E: The transport industry has been very positive about these changes. I have spoken to a number of operators who are very enthusiastic, and the Road Transport Forum said the Government has \u201Crecognised the inherent waste and inefficiency in the current RUC system. It is very refreshing to be working with Government on these issues for the overall benefit of the economy.\u201D Truckers already receive 6 weeks\u2019 notice of any road-user charge increases, which the previous Government refused to do, and we have allowed for electronic distance recording and electronic display of road-user charge licences. In addition, the revenue from road users is now largely invested back into the roading network. By our creating a modern, fairer, and more efficient road-user charge system, the industry is free to get on with the job of helping New Zealand grow.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000149\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002239965d274e7544d38af5ddd0badd616a\u0022\u003EHon Darren Hughes\u003C/span\u003E: Why does he choose to put a\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000150\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e6b4dc55-3561-49a8-a871-ae005354ef90\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002235cd177300824d639d047690665c294c\u0022\u003EHon Gerry Brownlee\u003C/span\u003E: It\u2019s Youth Week.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000151\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002257ed058055bc4ccfb70f41e8384b6fad\u0022\u003EHon Darren Hughes\u003C/span\u003E: I think you have had your day, Gerry.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000152\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ac169d29-4849-42c2-a4a7-f344fd416503\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00229ea645a52fd44864a33536996502d522\u0022\u003EMr SPEAKER\u003C/span\u003E: I have to be able to hear the supplementary question, and the member\u2019s own colleague, the Minister, has to be able to hear the supplementary question.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000153\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002208e3eec6b4e4445ba074b75777e4390a\u0022\u003EHon Darren Hughes\u003C/span\u003E: Why does he choose to put greater emphasis on getting people to their holiday homes more efficiently, at the expense of other transport modes that would also result in greater efficiency of the road transport system, such as committing to an airport-to-city rail link for the city of Auckland?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000154\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a244152-977c-48d2-bf53-4f3a369a27a9\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224708bdeeb586441190dd79b883075544\u0022\u003EHon STEVEN JOYCE\u003C/span\u003E: The member opposite once again shows a disturbing misunderstanding of economics and economic efficiency. The reality in this country is that 85 percent of passenger transport occurs in private vehicles, and that will continue to occur. The highway that the member referred to is massively more used than almost the entire current rail system in Auckland.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000155\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022b2567d3e-a09c-47b4-bd50-2f5bb4049762\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022be0e46b2df5843fda1170b0d4782df5c\u0022\u003ESue Moroney\u003C/span\u003E: Is he aware that around 60 people met in Te Kauwhata this week to support the establishment of a passenger train service between Hamilton and Auckland, and does he agree that that service could improve the efficiency of road transport for those stuck in traffic on Auckland\u2019s southern motorway every morning and every afternoon?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000156\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a244152-977c-48d2-bf53-4f3a369a27a9\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022058642df47414494aba5e1e39e19e4e2\u0022\u003EHon STEVEN JOYCE\u003C/span\u003E: I am doing this from memory, but my understanding is that the cost of subsidising a passenger on a train from Hamilton to Auckland is something like $15,000 or $16,000 per trip. It would be cheaper to hire a helicopter to fly someone from Hamilton to Auckland than actually to subsidise that train service.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000157\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00225a0a7febb0254404898d6bc3c36c01f8\u0022\u003EFood Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000158\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022dcef3e71fb504ab9bfe05b79c26b8b41\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022 data-id=\u002286c27d0b7830489eaed5d8bb8b23d580\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000159\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002286c27d0b7830489eaed5d8bb8b23d580\u0022\u003EHon KATE WILKINSON (Minister for Food Safety):\u003C/span\u003E I move, That the Food Bill be now read a first time. At the appropriate time I intend to move that the Food Bill be considered by the Primary Production Committee. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000160\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThis bill restates and reforms the law relating to trading in food in order to achieve the safety and suitability of all food for sale in New Zealand. It does this by providing for risk-based measures that minimise and manage the risks to public health and by requiring the persons who trade in food to take primary responsibility for its safety and suitability. The bill also provides certainty for food businesses in terms of their obligations and of how their activities will be regulated. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000161\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe food industry is vital to the New Zealand economy. It comprises 35,000 to 40,000 manufacturing, importing, retailing, and service businesses, and up to 200,000 additional part-time food premises. It also provides jobs for 20 percent of the working population. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000162\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe retail value of food and beverages is an estimated $13.8 billion per annum, and the food service sector\u2014restaurants, cafes, and the like\u2014has been valued at an estimated $5 billion. New Zealand\u2019s food sector accounts for at least 10 percent of gross domestic product. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000163\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe export revenue from food products and food ingredients produced in New Zealand is estimated to be $15 billion per annum. This means that food exports represent more than 50 percent of the total merchandise exports from New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000164\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003ESignificantly for an export-led recovery for New Zealand, the domestic food regulatory regime is the platform for exports. The New Zealand domestic standard is used as the basis for negotiating access arrangements with our trading partners. This can minimise the often excessive importing-country requirements that may be imposed but which do not go towards food safety. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000165\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill will replace the Food Act 1981, which, at nearly 30 years old, is outdated and inefficient. As a consequence, the Food Act 1981 and its subordinate legislation\u2014in particular, the Food Hygiene Regulations 1974\u2014have led to considerable inconsistency in application across New Zealand, they have resulted in the imposition of unnecessary compliance costs, and they do not do enough to protect consumers or to reduce food-borne illnesses. None the less, the Food Bill maintains those aspects of the current regulatory regime that work well. For example, it maintains the role of the Government as the principal regulator, it retains a local government role in the regulation of food premises, and there remains a role for independent third parties to act as verifiers for food businesses. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000166\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill seeks to reduce the prescriptive nature of the existing system and to move to an outcomes-based regulatory regime. The new regime will require all food businesses to apply the risk-based measure assigned to their sector. The bill provides for a number of different risk-based measures. This will allow food businesses to be regulated relative to the degree of risk that a particular sector or food-selling activity generally poses. For example, a baked goods fund-raiser will no longer have the same regulatory requirements that a bakery has. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000167\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill proposes four risk-based measures. The most comprehensive of these in terms of compliance requirements is the food control plan, and the least comprehensive is the food-handler guidance. The food-handler guidance is an educative measure for the food safety information that is particular to a food-selling activity. Food-handler guidance will be prepared by the New Zealand Food Safety Authority and provided directly to territorial authorities and relevant sectors. Those operating under the food-handler guidance will need to meet the requirement only of preparing or selling safe and suitable food. They will not be subject to any specific regulatory requirements. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000168\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill will also introduce specific and, in part, new requirements for imported food. All persons importing food will have the duty to ensure that the imported food delivers the same safety and suitability outcomes and meets the same standards that apply to domestically produced food. Furthermore, every consignment of food imported into New Zealand will now require a registered importer. The bill contains a regulation-making power relating the categorisation of imported food and the particular criteria that can be applied to each category. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000169\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe combined effect of the provisions on the face of the Food Bill and the regulation-making powers will be the establishment of a comprehensive imported foods framework. The framework is capable of closely regulating and controlling food imports. It will ensure rapid responses to the specific risks that a particular food or food from a particular source might pose before that food enters the New Zealand food supply. Furthermore, the framework places specific duties and obligations on the persons involved in the importation of food. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000170\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EMany food businesses will be required to be verified against their allocated risk-based measure. The amount of verification required will depend on the risk-based measure assigned to a particular sector. The bill enables the chief executive to recognise and approve both the public and private agencies and persons to conduct these verifications. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000171\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe role of territorial authorities has been maintained and clarified. Among other functions, territorial authorities will operate as a registration authority and an enforcement agency for certain food businesses. A territorial authority may also become a recognised agency and may conduct the verification of food businesses. It is anticipated that territorial authorities will have a 5-year window in which they will have the exclusive right to verify certain food businesses. This will help provide a degree of continuity for those businesses that are currently subject to territorial authority inspection. The bill will maintain the capacity in territorial authorities to undertake the full range of food safety and related activities, and it will reduce transaction costs for businesses in relation to compliance and enforcement, particularly during the transition period. The bill will also enable the Minister, subject to appropriate consultation, to set national outcomes relating to the performance of territorial authorities in carrying out their functions, duties, and powers. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000172\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill continues the current provisions relating to the recovery of costs that are not directly or indirectly met by the Crown. The provisions require the Minister and the chief executive to take all reasonable steps to recover the costs associated with administering the new Food Act. New provisions for cost recovery also set out those functions and duties for which territorial authorities may recover costs. The bill will also require that any cost recovery undertaken must be equitable, efficient, justifiable, and transparent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000173\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill modernises the enforcement and offence provisions, and it substantially increases the penalties from those set almost 30 years ago. The low penalties currently available under the Food Act 1981 have been the subject of judicial comment in the past, with one judge describing them as archaic. A number of cases over the years have involved serious harm and risk to consumers. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000174\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThis bill sends the clear message that the Government is serious about food safety by ensuring that the available penalties are appropriate to the 21st century food-trading environment. For example, under the Food Act 1981, a prosecution for selling food that is unsound or unfit for human consumption or that is contaminated can involve a maximum penalty of $5,000 for an individual. Under this bill, a person convicted of a comparable offence could expect, at the maximum, a penalty of 2 years\u2019 imprisonment and a $100,000 fine. A body corporate committing the same offence under this bill could receive a monetary penalty of up to $500,000. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000175\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EThe bill also contains regulation, standard, and notice-making powers. Of particular importance is the ability for the Minister to adopt joint food standards to give effect to New Zealand\u2019s obligations under the Australia - New Zealand joint food agreement. There is also the ability to adopt domestic-only food standards for those limited and exceptional circumstances in which New Zealand might need to opt out of a joint food standard. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000176\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022136da8c4-afc7-483e-a39c-c66812f71774\u0022\u003EI commend this bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022 data-id=\u0022322f8c6e237b47c3a008e569b353b40d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000177\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022322f8c6e237b47c3a008e569b353b40d\u0022\u003EDr ASHRAF CHOUDHARY (Labour):\u003C/span\u003E It is quite interesting to see Kate Wilkinson speaking in the first reading debate on the Food Bill. I am not really sure who the Minister for Food Safety is at this stage, because the Food Safety Authority was merged into the Ministry of Agriculture and Forestry on 1 July. It is still not clear who is running the show on the Food Bill. Is it the Minister of Agriculture or is it the Minister of Conservation, who is also the Minister of Labour? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000178\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002286a91f80317e40119be0f100944f5bc8\u0022\u003EHon Darren Hughes\u003C/span\u003E: Who would know?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000179\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227eeb3f8b2f2c4b29ae93d3e1300b48b7\u0022\u003EDr ASHRAF CHOUDHARY\u003C/span\u003E: Who would know? This Minister, Kate Wilkinson, has mucked up the 90-day bill she introduced, and she has mucked up the lives of many workers in New Zealand. This is the same Minister who was rolled over by Mr Brownlee in the mining area. The Minister of Conservation has been part of that mining plan in association with Mr Brownlee. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000180\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EThis bill refers to imported and exported food in New Zealand. In New Zealand, our main business is food. We produce food for about 60 million people. Of course, we consume a very small proportion of that food. We have about $20 billion worth of food that is exported and about $22 billion worth of estimated annual turnover in the food area. We employ over 20 percent of the workforce in the food area\u2014that is, in production, processing, retail, and all that. So it is very important employment for New Zealand. It is very important for New Zealand\u2019s exports, as well as for the social fabric of society. This bill is an important bill that has been in preparation for a number of years. Looking back, I have to acknowledge the good work done by Lianne Dalziel, a former Minister for Food Safety, and Annette King, who had been in the forefront of preparing this bill and doing the background work for a number of years. The bill has now come to the House after a number of years of preparation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000181\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EI say that we support this bill being sent to select committee. We will have the opportunity in select committee to receive submissions from the wider sector. I hope the chairman of the Primary Production Committee will give submitters the opportunity to have plenty of time to submit on this bill, because this bill is, as the Minister just said, a major review after 30 years. The bill is huge. At about 400 clauses, it is a big bill. I think we need to give plenty of time for the submitters, whether they are in manufacturing, retail, exporting, or importing. I think we have to give enough time for people to submit on the bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000182\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EWe welcome the introduction of this bill. When we were in the office, we were proactive in recognising the shortfalls under the existing food regulations. We initiated the domestic food review, which identified the major problem of food-borne illnesses we have in New Zealand. Clearly, 18,000 cases of intestinal illness a year, with 1,000 of those requiring hospitalisation, is completely unacceptable. The review also identified the confusion resulting from three different food regimes and three different regulations operating simultaneously. Labour oversaw the first draft of the Food Bill, which we now see introduced to Parliament. We support changes to improve business certainty and to ensure that compliance costs are kept to a minimum. Given the current economic situation, it makes sense that food businesses that are subject to food control plans have the ability to sign up to a generic template that covers the whole sector. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000183\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EThere are, as the Minister said, a number of key tools in this bill that are important. As the Minister highlighted, one of the key areas is the food control plans. These plans are particularly related to high-risk businesses, like restaurants. Every restaurant around the country and similar businesses will have to have food control plans. Secondly, there has to be a national programme for the lower to medium-risk businesses\u2014for example, horticulture producers and meat producers. Those areas, which are in the low to medium-risk business category, will have to have some kind of national programme. Thirdly, we need to have food-handler guidance, particularly educational information for low-risk operators who, for example, do fundraising events like sausage sizzles, as the Minister mentioned before. We have to have some kind of guidance and information provided to those people. Fourthly, we must monitor programmes to determine safety and suitability of food. Those are four tools in the armoury of this bill to ensure that we have suitable and appropriate food for New Zealanders and for exporters. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000184\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EI come to a couple of specific areas. In terms of food plans, we support the concept of a schedule to establish those high-risk businesses subject to food control plans, those medium to low-risk businesses that will comply to a national programme, and those low-risk operations, such as fundraising activities, that will have food-handling guidance through education will suffice. We will be seeking a guarantee on that point that this bill will have no impact on the cake-stall holders or the sausage sizzlers. I am particularly worried because clause 93(2)(b)\u2014and I highlighted this earlier in a question to the Minister\u2014states that a person or food business that is subject to food-handler guidance is liable to prosecution if they fail to comply with those requirements, as it is an offence against the Act. There are issues like that, and there are some fishhooks that we still need to look at. I am sure that some of those issues will come through at the select committee and we will look at the details. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000185\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EIn terms of the costs to the operators, we need to pay close attention to any increased cost incurred. According to documents released to Labour under the Official Information Act, fees in Dunedin have already jumped by $300 for some operators after territorial authorities raised their charges when they found their current charges inadequate. We also note that in the interim many territorial authorities have eased up on forcing compliance because they know the new legislation is coming. We hope that when the new legislation begins to impact, and the adjustments are made, it does not bite too hard on the small operators that have been disadvantaged through the economic recession. In relation to importers, I think this bill is very important for imported food. I am personally really concerned about some of the food we import, particularly from some developing countries where food regulations and hygiene are not very good. This bill will hopefully take care of some of those issues that we face every day in small shops like dairies. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000186\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002212f01718-dc1f-4307-b0b3-451098ab73df\u0022\u003EThe Food Bill requires every consignment of food to be imported by a registered importer. I think it is very good that those importers should be registered, whether directly or as an agent for a person importing food. The bill requires the chief executive to keep and maintain a public register of registered importers. I think that is very good. There should be a register for people importing food. These requirements do not exist currently, and they will enable more effective communication with, and targeting of, importers in situations that present risk, and when otherwise necessary. In the final analysis, I say that we will be very keen to pay particularly close attention to some of the costs incurred, to ensure that there are not too onerous problems for the Kiwi sausage sizzlers, and to address those kinds of issues.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022 data-id=\u0022db54b1582d584ac2a958e5b4458ada3c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000187\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022db54b1582d584ac2a958e5b4458ada3c\u0022\u003ESHANE ARDERN (National\u2014Taranaki - King Country):\u003C/span\u003E I rise in support of the Food Bill. I thank the Minister for Food Safety for showing confidence in the Primary Production Committee by suggesting that later on she will move that this bill be referred to that committee. I also assure the previous speaker, Ashraf Choudhary, that in the Primary Production Committee there will be a fair, open process, and we will give submitters fair time to submit. I think it is in the best interests of the whole of Parliament to get this bill right. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000188\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EAs the Minister said in her opening comments, 200,000 small businesses across New Zealand are involved in the food selling and catering business\u2014a domestic economy of $5 billion. Of course, as an export nation\u2014and New Zealand is an export nation\u2014well over 50 percent of our exports come from primary sector industries, despite figures that Treasury constantly puts out. Most of those primary sector exports are food in some form or another. It is essential that New Zealand get this right. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000189\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EAs the Minister said, a few issues need to be addressed. It is substantial legislation. We have had for some time in this country a whole range of different bits of legislation, many of them outdated. The Food Act itself dates back to 1981. There are also, of course, the food hygiene regulations from 1974, the Animal Products Act 1999, the Wine Act 2003, and many, many others that I am sure will be impacted by the passing of this bill and the work that the select committee does in terms of how that interface takes place. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000190\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EThe previous speaker mentioned an issue that comes up politically all the time\u2014he will make a fine contribution, I hasten to add, on the select committee. He has a science background, a Massey University background, and a whole life experience in the production, I guess, of food. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000191\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EOne of the issues that come up all the time and that was raised by the previous speaker is the issue of the school barbecue, the fund-raising event, the cake stall, and that kind of thing. We must ensure in our endeavours to make sure that we are thorough in our work around food safety and the marketing and sale of food, both domestically and internationally, but that we do not put in place a whole lot of costly compliance and regulation, and unintended consequences for those who want to be involved in community activities such as the school barbecue or, in the rural electorates, the school calf day. Unfortunately, the State has a bit of a reputation of being heavy-handed, over the top, and sometimes ridiculous in the compliance requirements that it places on those people. Putting in place a framework that can accommodate both that and also imported and exported food so that we absolutely guarantee our \u201C100% Pure New Zealand\u201D brand, which is so valuable to us\u2014in fact, it is the No. 1 brand for New Zealand\u2014is an essential piece of work for the Government and the select committee to carry out. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000192\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EThe number of reported cases of illness in New Zealand in recent years related to food-borne bacteria or diseases has been too high. So there is a need for a stringent framework around those who work with and handle food, and who work within the food industry in the catering of food for domestic consumption, etc. At the same time, our integrity internationally is at risk if we do not make sure that food exported from New Zealand meets the highest possible international standard that it is reasonable to expect an exporting nation to meet.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000193\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EThere have been a number of claims\u2014I know that as a constituent MP I field them regularly\u2014that the compliance costs placed on our exporters, because we are very determined to maintain the integrity around the \u201C100% Pure New Zealand\u201D brand, are such that it seems unfair that importers of food into New Zealand do not appear to have to meet that standard. I do not know whether that is factual, but it is often asserted. This is an opportunity, I guess, for those who feel as though they have evidence that there is a double standard in terms of what one must do to export from New Zealand, as opposed to competitors for that same product importing into New Zealand, to bring forward their claims and substantiate them. If they are proven to be correct, I am sure there will be an opportunity to highlight some of that in the process that we have before us. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000194\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00221c818ce2-6ca3-4c4a-9e6a-2e3a67d070e1\u0022\u003EThis is a very important piece of work that Parliament will undertake. I suspect it is one of those pieces of work that will go on below the radar, but one never knows. I give Parliament the assurance that the Primary Production Committee will carry out its work in a thorough, open, transparent, and fair way. All of those who are involved in the process will no doubt have their opportunity to participate in it. Thank you for the opportunity to contribute today. This is a fine piece of work, and I look forward to it going through the Parliament.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022 data-id=\u0022c10f38bad00b4900b073ebe55c6743c3\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000195\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c10f38bad00b4900b073ebe55c6743c3\u0022\u003EIAIN LEES-GALLOWAY (Labour\u2014Palmerston North):\u003C/span\u003E It gives me a lot of pleasure to rise and speak this afternoon on the Food Bill. At first glance it looks like a fairly technical bill, but nevertheless it has very important flow-on effects into other areas of legislation. It was very good to see the Minister for Food Safety get up and speak. She sounded so confident. I think she feels very secure in this area; it is a bit of a change from earlier in the week. It is nice to see the Minister looking so positive and secure on this Thursday afternoon after what has been, it has to be said, a bit of a rough week for her. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000196\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EIt is also nice to speak following the previous speaker, Mr Ardern. He is a good chair of a good select committee, the Primary Production Committee. It was nice to hear that he was talking about an open and inclusive process\u2014a bipartisan process, I am sure. I know that one of the members opposite, Sandra Goudie, is on that committee. She could learn a thing or two from Mr Ardern. Lately she has had a few problems on the select committee she chairs, the Law and Order Committee. There have been a few walk-outs by Opposition members due to the totally partisan, unfair, and opaque system that she has been running in that committee. Maybe those two members could sit down over a wine tonight and have a discussion about their relative positions. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000197\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EThis bill provides a regulatory framework to enable businesses to take primary responsibility for the sale of safe and suitable food. Food businesses will be regulated relative to the degree of risk posed by the food-selling activity that they are engaged in. A number of risk management tools are included in this bill: food control plans for high-risk businesses such as restaurants; national programmes for medium to low-risk businesses, such as horticulture producers; food-handling guidance and educational information for low-risk operators, such as those engaged in fund-raising activities like cake stalls and sausage sizzles, which probably every member in this House has been engaged in; and monitoring programmes, set by regulation, to impose measures in specific circumstances for determining the safety and suitability of food. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000198\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EThe bill provides certainty for our food businesses in terms of their obligations under the law and how activities will be regulated. It introduces specific requirements for imported food. All persons importing food will have a duty to ensure that it meets the same standards as domestically produced food, and every consignment of food imported into New Zealand requires a registered importer. Importantly, this bill maintains the role of Government as the principal regulator. I think it is very important that we note that. It retains a local government role in the regulation of food premises. The bill has modernised the penalty provisions. The current provisions are out of date and inadequate for 2010 and beyond, so that is an improvement. It sets out exactly what the base statutory requirements will be for each type of food and trading activity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000199\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EBasically, the bill takes a whole range of things that have been in different pieces of legislation, tidies them up, and brings them into one Act so that things are clear and understandable for the people who are operating within the framework of this bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000200\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003ELabour is absolutely supportive of this bill, as our previous speakers have indicated. Of course, Labour initiated this process when it was in Government, which is no doubt why the Minister feels so secure about it. It is a good, robust, and solid process that was started by the Labour Government, unlike some of the dodgier, more interesting things that the Minister has initiated under the National Government. I think Labour was proactive in recognising the shortfalls in the existing food regulations. Back in 2003 Labour initiated a domestic food review. That review revealed a number of shortfalls relating to the complexity of the regulations and the difficulty with enforcement. Although most food is controlled under the Food Act, other food is regulated under the Animal Products Act 1999, the Wine Act 2003, and the Agricultural Compounds and Veterinary Medicines Act 1997. We have a whole host of regulations under those Acts as well, so bringing everything into alignment under this one Act makes a lot of sense. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000201\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EA number of food premises are covered by the Food Hygiene Regulations 1974 and are inspected by territorial local authorities. Some businesses are exempt from this process because they have opted out and shifted into a voluntary food programme. These operators, more often than not, are supermarkets and manufacturers. They will probably be ahead of the game here; they will be prepared for this bill when it is enacted. These food safety programmes are administered by public health units and the New Zealand Food Safety Authority. Again, bringing everything into alignment under one Act makes a lot of sense. There has been a lot of inconsistency, duplication, and complexity. Many operators apparently have not been aware that the Food Act 1981 existed, let alone known who administered it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000202\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EI will just reflect on a news story that came out of Palmerston North in the last few days. One of those people who may have been struggling with the food regulations is a character known as the naked pie man. He is a well-known celebrity in Palmerston North. He owns the Central Pie and Smoke Shop, which is just up the road from Bootleggers\u2014a popular student establishment. The naked pie man has been in Palmerston North for a number of years. In fact, it has been so long that I can remember him from my student days at Massey University. I have been a customer of the naked pie man. The 2 or 3 a.m. pie just before jumping into a taxi to head home is a nice alternative to a kebab. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000203\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EThe naked pie man has come into a bit of strife in the past few days. He was the only operator in Palmerston North to receive a D grading for his food-handling service. Apparently, it all came down to a few lost bits of paperwork and a few hiccups in the process, which he did not quite understand. Hopefully this legislation will make things a little bit more streamlined for our naked pie man and he will be able to get his rating back up to something a little bit more respectable. To be fair, he will have to display that D rating, but to be honest I do not think the students will be put off very much. I do not think his business will suffer too much. But it is buyer beware, and everyone who walks into his shop will know that he has a D rating. I am quite sure that good, streamlined legislation like this will assist in getting him back on track. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000204\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EIt is important that we have food safety and food-handling regulations because there is a massive number of cases of intestinal illness each year; it is estimated to be about 18,000 cases every year. Of those cases, 1,000 require hospitalisation, which is not bad out of 18,000. I suspect that a few more cases than that probably require people to go to their general practitioner. We know that an awful lot of those cases cause people to need a few days off work. In fact, workplace absenteeism due to illnesses relating to poor food hygiene is estimated to cost about $86 million a year. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000205\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EA lot of those people would have a couple of days off, the boss would not mind too much, and there would be no requirement for a medical certificate or anything like that. But thanks to the Minister in charge of this bill, who happens to also be the Minister of Labour, all those poor people who have caught a bit of a tummy bug will now be sent along to their doctor for a medical certificate. They will clog up that service for all the people with genuine problems that their doctor could fix. That will slow down the process, but hopefully the Food Bill will stop so many people from needing so many days off work, and stop them from having to go to the doctor for a medical certificate and clogging up our medical systems. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000206\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EI have a concern. What will happen if someone gets one of these illnesses in his or her first 90 days in a new job? Does that mean that people might be out on their ear without any recourse whatsoever just because they got a little bit sick and had to have a few days off? Does it mean that they will be out the door with no recourse whatsoever? \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000207\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EAgain, I think this is a very important bill. It is so appropriate that Kate Wilkinson is in charge of this bill, because if it achieves its outcome\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000208\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224711157dcba74e5f8bec0411fe454c46\u0022\u003EHon Darren Hughes\u003C/span\u003E: In charge?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000209\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022c3e0fcb003624fb3b6b728567c9ca1f6\u0022\u003EIAIN LEES-GALLOWAY\u003C/span\u003E: It is a loose term to say that she is in charge. If the bill achieves its outcomes it may stop a lot of the problems that she has introduced to the New Zealand workforce through some of the other work she has been doing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000210\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022248d16d883cc45f1a15c87168a41a50a\u0022\u003ESandra Goudie\u003C/span\u003E: Talk about the Food Bill. Hello!\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000211\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221fa7c19c34ba4fe88b22109f5f28b593\u0022\u003EIAIN LEES-GALLOWAY\u003C/span\u003E: I am talking about the Food Bill. I think it is an important bill that will hopefully stop people from getting ill, which will be an important part of keeping people at work and productive. We will not lose $86 million a year in productivity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000212\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022490ccdbf-7c22-4e12-98f2-f3aa08f8e676\u0022\u003EThis is a good bill. It is an excellent bill because it was started under a Labour process. Labour is pleased to see it go to a select committee, where people will have the chance to have their say on it. We look forward to its progress through the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022 data-id=\u0022cee30e6ab2994781b9f8e46011135892\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000213\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022cee30e6ab2994781b9f8e46011135892\u0022\u003ESUE KEDGLEY (Green):\u003C/span\u003E We have heard a lot of gobbledegook today about outcome-focused regulatory regimes, reducing business compliance, and so forth. I am quite sure that if anyone is listening to Parliament today, that person would be none the wiser about what this 342-page Food Bill is about than they were at the outset of the debate. I thought I would begin by reading the Ministry of Health warning or concerns about a Cabinet paper on this bill, a copy of which I obtained under the Official Information Act. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000214\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EThe Ministry of Health said: \u201CWe have a concern that the options that were reviewed and the whole paper on this bill focuses very much on improving business certainty and reducing compliance costs, with no discussion on any impact of achieving food safety.\u201D It says the Cabinet paper makes no mention of the fundamental purpose of food safety, which is to protect human health, has no discussion of the extent of food-borne illness in New Zealand, and no discussion of whether the proposed changes are good, bad, or neutral for human health. It says this is a significant gap in the paper, which should say either that the changes will improve the protection of human health, in which case it should say why, whether it will make no changes\u2014and again it should give a justification for this\u2014or whether it will be worse for health, in which case it should include a description of what this might mean in a practical sense, in terms of the increased risk of food-borne disease and increased reputational risk for New Zealand producers. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000215\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EI think it is very important that we heed the warning of the Ministry of Health about this bill, because, as far as I can deduce, the bill introduces a risk management model to food safety by shifting the responsibility for food safety from the Government to the people who produce food. Once the bill is passed, it will not be the Government\u2019s responsibility but the food producers\u2019 responsibility to ensure food is safe, and they will have to manage all those risks. That sounds fine in theory, but if we look at other countries that have done this\u2014and I think particularly of America\u2014we see that they have essentially deregulated food safety from the Government to the food industry, and as a result of that there have been some quite spectacular public health disasters. For example, America got rid of its Government meat inspectors and said there would be no problem\u2014that the meat companies would provide their own inspectors. Anyone who has watched the move Food, Inc. will recall the massive E. coli food poisonings and deaths that resulted from inadequate food safety practices in the companies that, under this sort of regime, were supposed to be guaranteeing that food was safe. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000216\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EOf particular concern in this context is the fact that in New Zealand we import such vast amounts of food. Despite being a food-producing nation, we import $3.5 billion worth of food each year, including 145,000 tonnes of fruit, 41,000 tonnes of vegetables, 34,000 tonnes of meat, and 9,300 tonnes of fish. We have no idea where all of this ends up, because if we went round the entire supermarket with a magnifying glass, we would never find out where the 34,000 tonnes of meat imported into New Zealand might have ended up in the supermarket. It is like a modern detective story. Well, we will never find out that particular mystery, because, unlike any other Western country, we do not have mandatory country-of-origin labelling. We cannot work out which is which. None of that imported food has to meet the standards that our domestic growers are expected to meet, which is galling for them, particularly when imported food can be passed off as New Zealand food. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000217\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EThe other huge concern is that only a tiny fraction of the vast amount of food coming into New Zealand is tested at the border. Europe tests 10 percent of the imported fruit and vegetables, and it rejects 10 percent of all consignments of imported fruit and vegetables. What do we test? No one will believe this, but it has recently been verified in the Primary Production Committee that we test 0.25 percent. That is how much food we test, and even that, basically, is tested just for high-risk items, such as microbial contamination. We are not worried about things like illegal pesticides here. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000218\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EAnother issue that is of extraordinary concern in the context of this bill is that we do not even have to import food from countries that have food safety regimes in place. We can import food from unregulated countries. I know that people will not believe that this is true, but if they do what I have done and trawl through the New Zealand Food Safety Authority website, they will come across this statement: \u201CNot all countries have well developed domestic food safety regulatory systems and individual supplier safety practices can vary.\u201D Although the New Zealand Food Safety Authority expects importers, where possible, to \u201Csource food from suppliers that are operating within a regulated environment \u2026 If the supplier is not operating within a \u2026 regulatory environment, an importer should place more emphasis on asking questions about how the food has been produced.\u201D That is code\u2014or gobbledegook\u2014for saying it is perfectly legal in New Zealand to import food from countries that do not have food safety regulations in place\u2014and I might say there is nothing in this bill that seeks to amend that in order to require that we import food only from countries with regulatory systems in place. I ask how transferring the food safety risk to importers that are importing from countries without a regulatory system in place will work. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000219\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EThe other issue is that the Minister for Food Safety said we have a rapid response to food risks. But let us look at our record. Just recently, at the end of last year, the state department of health in Texas found high levels of lead in dried plums imported from China. It immediately issued a recall of them all. I checked up and found that yes, we import a large amount of dried plums from China. I wondered what the Food Safety Authority might do. Well, what it did was to tell importers to check their dried plums, to see whether they might be affected. That was the end of the matter; there was no recall, and no action. Then, 6 months later\u2014let us wait for it\u2014the authority released the results of some testing of a small sample of imported plums, which I presume were from China. Can members guess what the authority found? It found illegally high, non-compliant levels of lead in the plums, but still it did nothing. It was all perfectly safe, the authority said 6 months later. That, of course, was a typical response. It was almost a knee-jerk public relations response from the New Zealand food safety regime to downplay the results and assure consumers that there was absolutely no threat to their health. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000220\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EOne really worries about the context of our incredibly slack approach to food safety, particularly the safety of imported food. Until recently, anyone could import food into New Zealand. It was open slather. We did not even need to know who the importers were. Then the authority finally began to require importers to list their name and address with it. The good thing that this bill will do is to finally set up a register of importers, so that the Government will know who is importing food into New Zealand and will possibly be able to trace the food back to its source in the event of a food safety concern. But the truth is that despite all of the Minister\u2019s talk about this outcome-focused regulatory regime\u2014that is true; she said it is aimed at providing business certainty and reducing compliance costs\u2014it is doubtful whether it will deliver the same level of food safety outcomes at a lower cost. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000221\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaaad191-62cf-43e8-a772-63a71dbf4d4a\u0022\u003EThe real purpose of this bill seems to be to deliver the same level of food safety outcomes as previously, but at a lower cost. However, the truth is that when we consider the context of the slack approach that this Government and previous Governments have taken towards food safety, the vast amount of imported produce coming into New Zealand, the infinitesimal amount of testing at the border, the fact that we can import food from countries that do not even have regulatory regimes in place, and the fact that until now we have not even known who has been importing our food, I am afraid to say that we are not confident that this bill will really be the great leap forward in terms of food safety in New Zealand that many people have said it will be. The bill is 342 pages long. We will approve its referral to a select committee. I can assure the Government that I will be asking many questions and will seek to figure out whether any of the vast 342 pages of legislation will make a blind bit of difference in terms of improving food safety.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022 data-id=\u002231e62ae6aa524a95980a16592950c48c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000222\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002231e62ae6aa524a95980a16592950c48c\u0022\u003EHONE HARAWIRA (M\u0101ori Party\u2014Te Tai Tokerau):\u003C/span\u003E From what I can tell, this Food Bill talks about defining what is and what is not food\u2014apparently cookware is not food. As if we needed to come to Parliament to find that out! It talks about establishing steps in the food safety chain, it talks about providing greater consumer protection, and it talks about promoting the positive endorsement of food safety\u2014all of which should benefit New Zealanders, both M\u0101ori and non-M\u0101ori, on marae, in homes and community facilities, and in businesses right throughout the country. But I note from the comments from Sue Kedgley of the Green Party, in particular, that the bill still leaves a lot of questions about imports and standards unanswered. The M\u0101ori Party will support this bill at its first reading. We will watch for comments and submissions on the bill during the select committee process.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022 data-id=\u00227c179356de364116aa1db2cb5a45b024\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000223\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00227c179356de364116aa1db2cb5a45b024\u0022\u003ESANDRA GOUDIE (National\u2014Coromandel):\u003C/span\u003E I am pleased to take a call on the Food Bill. For the edification of Miss Kedgley from the Greens, I say that this bill will make it easier for food businesses to understand how safe food needs to be produced\u2014and that is exactly as it should be\u2014with the least amount of bureaucracy and red tape to do that.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000224\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022\u003EI note that a h\u0101ngi takeaway has just popped up in one of the bypasses of my electorate. I applaud that entrepreneurial spirit and hope that that takeaway\u2019s owners did not have to jump through too many hoops to set themselves up as one of the many food businesses throughout New Zealand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000225\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022\u003EI remind people that this Food Act has not been updated for 30 years, and our current regulatory system is not as effective and as efficient as it could be. That is something that has been said time and time again throughout New Zealand by all sorts of people who want to do things within their communities. One of the keys things, as Ashraf Choudhary said, is that we do not want to penalise or obstruct in any way the community-based fund-raising activities like cake stalls or sausage sizzles, which are a big part of many communities\u2019 fund-raising efforts. I know that many share the same sentiment, which is that none of us would like to see those efforts impeded in any way, as we all enjoy backing our schools and communities in those events.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000226\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022\u003EOne of the other areas mentioned is our export and our import sector. Shane Ardern made a great contribution on that, so I will not speak for any length about that aspect of the legislation.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000227\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002225f8c78b-f301-4aca-a936-366f00a26bc9\u0022\u003EThe Food Act 1981 and its subordinate legislation, particularly the Food Hygiene Regulations 1974, have led to inconsistencies in application across New Zealand. This is a wonderful opportunity to deal with those inconsistencies together and have much more comprehensive legislation dealing with all of those matters that have been raised, in particular the issue of not penalising the efforts of our small communities in trying to ensure that we have safe food production in our large commercial enterprises.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022 data-id=\u0022f510f97575574eb1a50a57b731437237\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000228\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f510f97575574eb1a50a57b731437237\u0022\u003EHon DAMIEN O\u2019CONNOR (Labour):\u003C/span\u003E The Food Bill is indeed substantive legislation\u2014370 pages makes for quite a lot of reading. That is as it should be, because the production of food is the key driver for New Zealand\u2019s economic wealth and will be for many years into the future. It is appropriate that we have a bill that has been in the development stage for many years. The bill was initiated by the previous Labour Government and it has finally been brought to the House. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000229\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EMost people have said they welcome the bill\u2019s introduction. Labour will support it because it does a number of good things in terms of alignment and improvement in the way that food is regulated in this country. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000230\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EI will go back one step and explain why it is so important that we get this right. The Federated Farmers conference in Invercargill not so long ago heard from a number of speakers that the opportunities for this country in the future in terms of food production are huge. We have a wonderful future in selling into the growing markets of China and India. These countries are growing in affluence, and people want better-quality food, they want to know where the food comes from, and they need to know it is safe. So the opportunities are unlimited, but we have to do it right. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000231\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EThe issue is not just about exports. We need to have a best-standards regime in New Zealand\u2014international standards, that is\u2014because it is very hard to tell the world that we export the best-quality food but do not have the best-quality food within our own shores. That is the reality. Many people in the agriculture and food industry will tell members that when manufacturing for export the standards are higher than the standards necessary for domestic consumption\u2014and that is not the way it should continue. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000232\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EI guess that the misalignments and the number of pieces of legislation governing food production have been in part responsible for that. The previous Government saw the wisdom in bringing all food production under one piece of legislation. There was extensive consultation around the industry and, for the most part, the industry fully supports this door-stopper of a bill. I am sure that you, Mr Assistant Speaker Barker, like many members of Parliament, will have read it. I am sure the Minister has read it from front to back and twice over. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000233\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EBrand New Zealand must be upheld; the integrity and safety of our food production must be absolute. No one can have any doubt that we should be, and are, the country of finest food production in the world. In this legislation we have aligned the standards and, as the previous speaker said, made the system easier. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000234\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EI am not sure that making it easier is the objective of the bill. It should not be; it should be making the system better\u2014that is, more consistent and more effective. It should guarantee that those from this country who go offshore or sell into the domestic market can say they know how the food was produced, where it came from, and that it is safe for consumption. As previous speakers have said, there are far too many cases of food-borne illness in this country. They cost us something like $80 million a year. That is a huge cost to pay just for not eating the right food or not handling it correctly. We must try our best to reduce that, aside from all the issues of our reputation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000235\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003ELet me go through some of the processes in the bill and the basic concept of companies having a food plan. If they are substantive producers of food, they will have to develop their own food plan. There will be a template, I understand, which means that sectors or businesses do not have to keep reinventing the wheel, and I think that is a very smart move. Too often, through the Resource Management Act or other legislation, we place an obligation on organisations to come up with their own safety plan or whatever. There will be a template, and companies or organisations can have a look at that and see how it applies to them. There will be the ability for them to have their own food plan if they fall outside the basic parameters laid down. So no one will be exempt on the basis that they do not quite fit the square box, and we welcome that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000236\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EThere will be some questions on the issue of self-policing. The basis of it is developing one\u2019s own food plan, having standards, and maintaining those standards. The meat industry, for example, is under huge pressure at the moment. I am not quite sure whether we could rely on the meat industry to police its own standards of processing and export. We need in many cases to have an oversight body, which will be a local body in many cases. It will have to monitor the food plans. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000237\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EAlthough we would be relying on self-policing, ultimately there must be a penalty regime and an oversight body that can step in, because when pressures come upon any business or organisation, people tend to cut corners. We cannot afford to have any food business\u2014be it a restaurant, a takeaway bar, or a major exporter\u2014cutting corners in that area. As I have said, our reputation is at risk here. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000238\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EA custom-made food plan\u2014a plan that applies to a certain organisation and falls outside the ability to use a template\u2014will be overseen by the territorial local authority, or by the Ministry of Agriculture and Forestry, ultimately. Of course, there are some questions\u2014and this may not be the time to raise this issue\u2014but with the Food Safety Authority now being merged back into the Ministry of Agriculture and Forestry, there are questions of expertise, or a possible dumbing down. The Minister is shaking her head, and I hope she is right. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000239\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EI know that the Ministry of Agriculture and Forestry is often consumed by its trade interests. It will on many occasions advise Ministers that we should not provide any assistance because it might impact on our trade reputation offshore. Well, we have to make sure that the Ministry of Agriculture and Forestry does not compromise its advice to Ministers or its operation of policing the food legislation. It should not compromise that in any way. The ministry has to take a close look at itself and assess whether it can objectively maintain the highest standards and not be subject to issues of trade, industry lobbying, or whatever. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000240\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EThe food handler guidance regime was of concern when Labour looked at this legislation. I am referring to the ability for people to have sausage sizzles and engage in fundraising activities. I know that there was a concern that we might have the food police\u2014the food Nazis was the nasty term at that time\u2014coming in to stop people selling sausages. That is not the case. Schools and organisations like St John Ambulance, fire brigades, or whatever, who have sausage sizzles on a regular basis or sell other forms of food need to know they can continue to do that. We certainly intend that to occur. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000241\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003EI am sure that the Primary Production Committee, when following the process on this bill, will try to uphold that, but I have to ask the Minister, the Ministry of Agriculture and Forestry, and local authorities to ensure that we do not have overzealous people policing sausage sizzles. I know that people wear gloves at most of them. The old days of having a smoking, wheezing enthusiastic school secretary handing us a sausage\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000242\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00224a11ce4e-9fb3-4738-b0be-5a9f81d975da\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022981e83226eea43159e026485a1169f62\u0022\u003EHon Maurice Williamson\u003C/span\u003E: They taste better with a bit of cigarette ash.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000243\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022cbc74ce385004cd19196ea657815e025\u0022\u003EHon DAMIEN O\u2019CONNOR\u003C/span\u003E: Well, yes, they did taste different, and I guess they helped build up our immunity to many things, but I think those days have long gone. We have to ensure that in upholding higher standards we do not open the door for an overzealous local council rep to come along and shut those events down. I think we reached a good compromise in that area, and I hope we can maintain that during the select committee\u2019s deliberations and, finally, back in this House.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000244\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022471dee54-f59e-4497-b3d3-c39044ce7169\u0022\u003ELabour supports the bill. We have been very proud to be part of its development. We support the Government in bringing it to the House and ensuring that we have in place the best system of food management in the world so that we can rightfully uphold Brand New Zealand and say that we will now, and in the future, produce the highest quality food for top-end consumers, be they in China, India, the European Union, or the US. I commend the bill to the House, and I recommend and support its passage through the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022 data-id=\u0022637bf54df4ee48d3b463ee61d47f20d5\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000245\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022637bf54df4ee48d3b463ee61d47f20d5\u0022\u003ECOLIN KING (National\u2014Kaik\u014Dura):\u003C/span\u003E It is a pleasure to address the Food Bill at its first reading. Having listened to all the speakers who have spoken before me, I say that I think those who are listening would come to understand that having somebody looking over the shoulder of everybody who is producing food for sale would be quite impossible, and therefore we need to have a good, solid, reliable food plan that the business itself fully understands. On that basis this is why the bill is so good. It makes it easier for business to fully understand their responsibilities, their requirements, and their undertakings in the preparation of food for sale and food provided for a whole range of things. I just want to clear up that point, because when we use the term \u201Ceasier for business\u201D it can be construed at times that we are actually taking shortcuts, but, really, in this context in the Food Bill, \u201Ceasier for business\u201D means that it is clear and understandable, and well and truly articulated. Business can effectively take ownership of it, they can write up their own food plans inside the framework that has been designed, and then they can be audited by the local territorial authority against the food plan that they have designed. This all comes under the overall auspices of central government, so that has to be very good. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000246\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022\u003EI will take a couple of moments to draw people\u2019s attention to the parts of the bill that I think add value. Clause 94 clearly articulates the exemption for certain persons involved in community-based fund-raising activities. The only point I would raise is that the proposed transition from the existing food regulations to the Food Bill, when it is enacted into law, is said to take 5 years, but I certainly hope that it does not take 5 years before we start sorting ourselves out around sausage sizzles, cake stalls, and preserves.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000247\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022\u003EOn the other side of it, I will turn to schedule 1, which covers food sectors subject to food control plans. I think this part clearly improves the bill considerably because, again, it enshrines in legislation those parts and the very purpose and intention of that framework. It does not give anybody the excuse or the opportunity to say that it was not clearly articulated. Obviously, there have been considerable inconsistencies throughout the country in the way local authorities have insisted on standards. I believe that this bill certainly makes an improvement. The Government feels that this bill is indeed an improvement over the previous Government\u2019s bill as it includes a massive schedule covering what the food control plans will look like. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000248\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022\u003EIt is also worth noting that a considerable amount of this bill is set down for the purpose of articulating infringement offences. It goes right through the whole process, which is considerable. Again, the whole tenor of this bill puts the responsibility back on those people who are governed by it\u2014those people who are in the food business. I think that that is very appropriate, when we consider that just over a year from now we will be hosting one of the largest sporting events in the world, and possibly the largest sporting event that New Zealand will host.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000249\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022015f8825b43c4835bfa13002e1c7a23d\u0022\u003EHon Darren Hughes\u003C/span\u003E: That sheep-shearing competition?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000250\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022524986957f624f0f93c01c4c67f8c84a\u0022\u003ECOLIN KING\u003C/span\u003E: I would like to think it is, but it is not. That competition is headed off by a nose by the Rugby World Cup. On that basis one\u2019s mind is cast back to 1995 when we were over in South Africa. We had an incident that could have cost this country the second World Cup win.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000251\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c437bda8-4741-4ac5-89ab-b0818e1ab9fa\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022377a80e440614d06bd68dfa1e815005e\u0022\u003EHon Darren Hughes\u003C/span\u003E: It did.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000252\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022ffff330f-1757-41d6-9973-25244f0fdada\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002242e4abb8341c4cfa9e816b68d29c4d9d\u0022\u003ECOLIN KING\u003C/span\u003E: I take the member\u2019s comment that it did; I would not go as far as to say that. When we have our 85,000 to 90,000\u2014maybe even 100,000\u2014visitors here in 2011, I am sure they will return home after having had a very, very enjoyable experience, after the Primary Production Committee has applied itself to getting out any gremlins from this legislation so that it works effectively and it serves possibly our largest industry now, if not in the future, which is tourism. If we have people coming here and they know that our lamb in the EU or the US is one of the highest protein value products they can buy, they will also expect the exact same from our tourism industry. But if we do not have the food standards, the food preparation, and the certainty to present to our tourists, then we are failing them miserably. It is with great enthusiasm and pleasure that I support this bill, and I commend it to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022 data-id=\u00228be0ddd02e044b8faab618e3b60988ff\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000253\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00228be0ddd02e044b8faab618e3b60988ff\u0022\u003EDAVID SHEARER (Labour\u2014Mt Albert):\u003C/span\u003E It is my pleasure to take a call on the Food Bill. As has been said by others, this bill has support throughout the House, simply because it is good, common sense legislation. There is a myriad of regulations and by-laws, both at the local level and at the national level, that regulate the sale and distribution of food. The key thing, as other speakers have pointed out, is that when we can attribute an estimated cost of about $80 million to lost work opportunities as a result of bad food-handling, this legislation is all the more important. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000254\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EOne of my colleagues pointed out that if people get a sickness such as diarrhoea as a result of poor food-handling and they have to stay home from work, there will now probably be an obligation to go to a doctor to get a medical certificate. Let us touch on that matter for a moment. Let us face it: it is a waste of time for people who are sick for a day to have to get an appointment to see a doctor, perhaps the next day, and to front up with a medical certificate to their employer. Instead of 1 day off work, they might need 2 or 3 while they go and get their medical certificate, which is apparently much needed! So I congratulate the Government for coming up with a suggestion that will result in more people being off work, rather than fewer.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000255\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EI come back to the key issue, which is the need for the Food Bill. A myriad of by-laws and regulations exist at the moment, which makes it extremely complicated and confusing for food sellers and operators. As has been pointed out, this bill is not meant to apply to charity barbecues or sausage sizzles, although I guess over time, particularly as a result of this bill and the additional education related to its implementation, we will hopefully see some improvement in that area. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000256\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EThis bill was begun, as has been pointed out, by the previous Labour Government as a result of need and the way the existing legislation had grown holus-bolus. We will support the bill to go to select committee. There is an enormous amount of work to be done on this tome, this door stop. We will be going through those issues in the select committee. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000257\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EI will highlight right now a couple of areas of possible concern. One is the amalgamation of the New Zealand Food Safety Authority with the Ministry of Agriculture and Forestry. This is important because I think that this Government is putting together agencies under the guise of efficiency and cost savings. I believe this will undermine their operations, particularly those of the Food Safety Authority when it is under the Ministry of Agriculture and Forestry. With this amalgamation we are seeing no real cost savings whatsoever. There are zero cost savings, yet a smaller organisation is amalgamating with a much larger organisation. Its key purpose and its key reason for being are possibly being threatened and undermined. That is an extremely important aspect of this move. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000258\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EThis move is also found in the science and innovation area; I applaud the Government for its change of name. Its amalgamation of the Foundation for Research, Science and Technology and the Ministry of Research, Science and Technology in a new, very good-sounding ministry\u2014the Ministry of Science and Innovation\u2014again does not really highlight enough what may happen as a result of this amalgamation. Let us see what might happen. We are looking at about $6.9 million to put these two agencies together. It will take at least 5 or 6 years, looking at Treasury\u2019s estimates, before that becomes cost neutral in terms of the savings. We ask ourselves why we are doing this, and the only answer I can come up with is that it makes the Government look like it is doing something for the sake of doing something. It is a great name, but $6.9 million is a very big price tag to change the name of an organisation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000259\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EMore important, it mixes the funding with the policy. Now policy and funding will be in the same agency. The great point about the Ministry of Research, Science and Technology\u2014and Labour itself looked at this\u2014was that it was able to give independent policy advice to the Minister, separate from its ability to fund different pieces of research. This change makes the Minister susceptible to the fact that funding will be mixed up with that policy advice. Funding could actually be directed by the Minister. That is not the intent of the legislation, at all. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000260\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003ETurning to another point, the search for a new head of the Ministry of Science and Innovation was a great opportunity to get some of the best thinkers and innovators internationally to head this new organisation. This organisation can lead our innovation, and can lead our economic drivers into the future. We have seen a 2\u00BD-week recruitment process to try to find a head for this new organisation\u20142\u00BD weeks. That does not enable a comprehensive international search to occur. We want this new agency to drive our economic growth, to get behind some of the science and innovation, and to get behind some of the commercialisation of the fantastic ideas that are out there in New Zealand. What we are seeing is a very half-hearted, \u201Cwink wink, nudge nudge\u201D recruitment policy to get the person who is going to be responsible for driving it. We could get somebody from Finland, Denmark, Singapore, or Israel\u2014the countries in the world that are really out there\u2014at the head of our innovation. Instead we will be getting, after 2\u00BD weeks\u2019 search, a person who will probably come from within the bureaucracy but who, I hope, has great credentials. More likely it will be someone with the same thinking, and very little new thinking, and will therefore provide very little in the way of new opportunities for New Zealand to get ahead. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000261\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EI believe that is a very sad indictment on the way that this Government is going about its reorganisation. It is a very sad indictment on the way that we are trying to get ahead in our economic growth. We had an opportunity to recruit a really world-class leader to head up our export, scientific, and innovation-led industries. Instead we will get somebody from within the bureaucracy who will get a wink, a nudge, and a tap on the shoulder. That is a wasted opportunity. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000262\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022dfa851f0-ef7b-4834-bc41-1b3b645a3495\u0022\u003EIf we did a proper recruitment process, if a local person was recruited on the basis of a wide international search, and if a New Zealander who was already working within our institutions was selected from an international search, I would say that would be a great pat on the back for that person. But we are not getting that. Instead, after a 2\u00BD-week desultory, narrow recruitment process we will be getting somebody who will not necessarily be the best. We will not know whether that person is the best. It is a bit of a shame.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022 data-id=\u0022be7d63ec86d8420c9cc7850cfd56e1b0\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000263\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022be7d63ec86d8420c9cc7850cfd56e1b0\u0022\u003ECRAIG FOSS (National\u2014Tukituki):\u003C/span\u003E In speaking on the first reading of this 340-odd-page Food Bill, I congratulate the Minister for Food Safety, the Hon Kate Wilkinson, on bringing this bill to the House and for the work, clarity, and productivity gains she is setting in place for New Zealand and for our families to enable further job growth in many of our lower-paid and lower-skilled industries. I genuinely congratulate her for some of the other work she is doing at the moment, and on the way she is managing to steer New Zealand in the right direction. I also congratulate the new Opposition spokesperson on agriculture, Damien O\u2019Connor. It is an interesting admission of failure on the part of the Opposition. The previous spokesperson failed to land a blow on the Hon David Carter, and, with previous history, I think Mr O\u2019Connor will also struggle. I recall that a few years ago he\u2014I think it was him\u2014struggled through his ministerial role. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000264\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EToday is Thursday, and a previous speaker mentioned the naked pie man in Palmerston North. Well, that is very interesting and for the sake of Hansard I had better not go there, but it did bring up all interesting sorts of play on words and things. I note that Hawke\u2019s Bay produces the best pies in New Zealand, year after year. It is very interesting because after this bill the New Zealand Productivity Commission Bill will come up for debate. In fact, this bill fits in very nicely with productivity gains for New Zealand. It simply provides clarity and certainty to those in this sector. As we all know, as other speakers have acknowledged, and as I acknowledge, the bill originated under the previous Labour Government. The potential growth and New Zealand\u2019s upside from anything related to food is very, very large indeed\u2014particularly from my region of Hawke\u2019s Bay, wine country\u2014especially in emerging Asian markets.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000265\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EI note very quickly a couple of points. The Food Bill will go to the Primary Production Committee, which I am on. The schedules in the back of the bill, particularly schedule 3 on page 299, which is about horticultural producers who do direct sales of their own produce to consumers, define that sector of direct sales. There has been a bit of mischief around that sector over time, but it is a tradition in places like Hawke\u2019s Bay, Wairarapa, and down south Nelson way to have honesty boxes out the front of orchards and places. The bill puts some perimeters around it that are not too stringent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000266\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EI congratulate the Minister and her officials for the way they have managed to pull this together. I am sure the select committee will find some amendments it may want to put in the bill on its way through that process. A point of interest, particularly to me, is in schedule 7 on page 328 where there are various changes to other Acts, particularly the Geographical Indication (Wines and Spirits) Registration Act. Being from the Hawke\u2019s Bay, we have a very large interest in all things wine and food as we are the food basket of New Zealand. I look forward to this bill passing through the House and contributing to it as it goes through the Primary Production Committee, and I look forward to it coming back before the House. Thank you.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000267\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EBill read a first time. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000268\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EBill referred to the Primary Production Committee.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000269\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u00228a0360ef8a604e5d90f4d231149ef08f\u0022\u003ENew Zealand Productivity Commission Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000270\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022519a8230c7654e61b639b0c76808e027\u0022\u003EFirst Reading\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022 data-id=\u0022c9fd09888d174677998315c3f027d804\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000271\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c9fd09888d174677998315c3f027d804\u0022\u003EHon BILL ENGLISH (Minister of Finance):\u003C/span\u003E I move, That the New Zealand Productivity Commission Bill be now read a first time. This legislation is another step in the Government\u2019s active programme to lift New Zealand\u2019s economic performance in both the public and the private sector. In the long run, productivity is the biggest determinant in wages and living standards of New Zealanders.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000272\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EAt the appropriate time I intend to move that the New Zealand Productivity Commission Bill be referred to the Commerce Committee, that the committee report finally to the House on or before 22 November 2010, and that the committee have the authority to meet at any time while the House is sitting, except during oral questions, during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 187 and 190(1)(b) and (c).\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000273\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe New Zealand Productivity Commission Bill is designed to establish a New Zealand Productivity Commission that will have a very broad mandate to investigate productivity-related matters in order to lift the overall well-being of New Zealanders. The commission\u2019s role and functions are modelled closely on the Australian Productivity Commission, which has an impressive track record in providing high-quality public policy advice.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000274\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe Productivity Commission will have three key functions on referral from responsible Ministers. Firstly, it will conduct inquiries into productivity-related matters. Secondly, it will conduct one-off reviews of existing regulatory regimes and agencies, and this process will include reviewing their efficiency and effectiveness. Thirdly, it will undertake regulatory impact analyses of specific regulatory proposals.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000275\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe terms of reference provided by responsible Ministers will provide the details of work to be undertaken, and all will be made publicly available. These terms of reference will cover the scope of the inquiry, the due date of the commission\u2019s final report, and consultation requirements. The last point is that there will be a general expectation that the commission will consult widely with stakeholders.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000276\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EProductivity has a broad definition that includes any productivity-related matters in the whole economy, in both the private and the public sectors. This will enable the commission to investigate a range greater than its Australian counterpart. To give a few examples, the commission would be able to investigate issues as diverse as disability care and support, or the contribution of the not-for-profit sector, in the same way that the Australian productivity commissioners looked into these topics. In addition to its inquiry functions, the Productivity Commission will be able to, on its own initiative, undertake and publish research about productivity matters in order to develop its own knowledge, and to assist its operations it will also be able to promote public understanding of productivity-related matters.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000277\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe New Zealand Productivity Commission will be able to undertake joint inquiries in research with overseas agencies such as its Australian counterpart. It makes sense for the two commissions to cooperate, given the Government\u2019s strong commitment to a single economic market between New Zealand and Australia. We also expect strong informal links to develop between the two commissions. The commission will be an independent Crown entity similar to the Law Commission and the Commerce Commission. This will allow important policy issues to be examined at arm\u2019s length from the Government of the day. It will have three to four part-time commissioners, and it is expected to have approximately 21 full-time staff to support them. To give effect to its independence, the commission will be able to determine its own procedures for its statutory functions and have access to statistical information, like other Government departments under the Statistics Act. To ensure transparency, the commission\u2019s work programme will be publicly available, and the commission\u2019s reports must be tabled in the House of Representatives as soon as practicable after they are received by the responsible Minister.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000278\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EOnce fully operational, the commission will have an annual budget of approximately $5 million by 2012-13. No additional Crown funding will be needed to fund the commission, as funding will be sourced from existing budgets of 29 Government agencies.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000279\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe establishment of the Productivity Commission is a concrete step that the Government can take to help to lift the living standards of New Zealanders. In introducing this bill, I acknowledge the contribution of my ministerial colleague the Hon Rodney Hide, and his particular focus on this issue. I also acknowledge the contribution of the Labour Opposition, in particular Lianne Dalziel, who, in her capacity as a Minister in the previous Labour Government, did quite a bit of hard work in respect of improving a regulatory reform process.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000280\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EWe see this Productivity Commission as an additional tool available in the service of public policy to help to lift the level of debate around what are increasingly complex issues. The days when it was possible for politicians to say that the answer was always to deregulate are over, and many of the regulatory issues impinging on productivity that are dealt with now are quite complex. So this commission is intended to create a higher level of debate and an institution that is at arm\u2019s length from the daily political hurly-burly of Government. In that respect, I commend the New Zealand Productivity Commission Bill to the House.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022 data-id=\u0022e3e60eeb5b6a4328864b4e68de1b4f0d\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000281\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022e3e60eeb5b6a4328864b4e68de1b4f0d\u0022\u003EHon LIANNE DALZIEL (Labour\u2014Christchurch East):\u003C/span\u003E I rise to advise the House that the Labour Opposition will support the New Zealand Productivity Commission Bill going to a select committee. However, we will use this first reading debate to indicate to the Government the changes that we would like to see occur with the legislation in order for us to support it beyond a select committee. I hope we are able to achieve the changes that we want to see occur with this legislation, because as the Minister of Finance stated in his introductory comments, those of us on this side of the House who have played a role in economic policy, commerce policy, and regulatory responsibility have taken the view that one of the areas of commonality between New Zealand and Australia that we could use as a platform for mutual growth is a shared productivity commission on a trans-Tasman basis. The Australian Productivity Commission is something that I hold in very high regard. I have said on more than one occasion that I would have liked to see that as a core focus of any Government\u2019s agenda, and build up that relationship into a single focus on how we engage with our closest neighbours on improving productivity right across the board. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000282\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EThis bill has an underlying flaw, and that is probably in its genesis. When the Prime Minister stated after the last election, in his promise to be ambitious for New Zealand, that we should catch up with Australia I think there were some people who felt that that actually lacked ambition in its own right. But here we have an opportunity to catch up with Australia, and we are missing the boat a wee bit in that regard. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000283\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EThe Prime Minister agreed, as part of the confidence and supply agreement with the ACT Party, to look at the concept of a Productivity Commission. I think, justifiably, the Minister of Finance has paid tribute to the Hon Rodney Hide, as the Minister for Regulatory Reform, for promoting this as part of the confidence and supply agreement and then delivering on that in joint signatures to Cabinet papers with the Minister of Finance. I do not think it is fair to not give him full credit for that because I do not think that the Government would have introduced this legislation without the work of the Hon Rodney Hide. I certainly pay tribute to him for that. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000284\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EThe 2025 Taskforce, on the other hand, which is led by Don Brash, was given the task of the \u201Ccatch up with Australia\u201D part of the deal. It seemed a rather odd appointment to me. I do not know whether anyone else thought it was strange that one would appoint to that role the person who was the Governor of the Reserve Bank at the time that the gap was created. Why one would put him in charge of the 2025 Taskforce to reduce the gap between New Zealand and Australia seemed absolutely bizarre to me. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000285\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EWhen we look at all of the proposals that have been put forward in the first report to the Government from the 2025 Taskforce, led by Don Brash, we see that it is even more surprising, because they are designed to take us further and further away from catching up with Australia. So it was not surprising to me when I read the Cabinet papers behind this bill that I found a very clear distancing between the proposal to have a Productivity Commission and the 2025 Taskforce. We are told in the Cabinet papers that they are, in fact, quite different. Let me quote the first Cabinet paper: \u201CThis work is distinct from the 2025 Taskforce. It is envisaged that a possible New Zealand Productivity Commission would be a permanent institution that carries out reviews and inquiries (and potentially other functions identified in the further analysis) based on a work plan agreed by the Government. The taskforce is an independent group of experts appointed for a three-year term to advise the Government on policies and institutions that will assist in closing the income gap with Australia by 2025.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000286\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EThe distinction that they are drawing is between having a work plan agreed by the Government, which means that the Government gets to set the agenda for the Productivity Commission, but the task force can do or say anything it likes and the Government can completely ignore it. Of course, the Government is doing exactly that, and I think I know why. When I picked up the Dominion Post last week, on 16 July 2010, I found this headline: \u201CBrash blows fees budget\u201D. That is because he does not know anything at all about productivity. He has managed to spend the entire 3-year budget for his meeting fees in just 1 year. I do not know\u2014how good is that! Don Brash is in this role and his meeting fees budget has been absolutely blown to smithereens in the first year. It is four times the amount earmarked for his first year on the task force. I do not think that this man can teach us anything about productivity, which is probably not surprising given the contribution that he made to the mess that this country found itself in after his period as the Reserve Bank governor. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000287\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EIf this bill has anything to do with catching up with Australia\u2014I would like to think that it does\u2014why is it narrower than its Australian counterpart? That is the question we have for the Government. We do not agree with the Minister who introduced the bill that this bill has a broader mandate. In fact, we are absolutely clear that it has a much narrower mandate than the Australian mandate. In that regard, this is a bill that lacks ambition. It is not ambitious for New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000288\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003ELet me run through the commission\u2019s legislative instructions in Australia\u2014this is for the Australian Productivity Commission: to \u201Cimprove the productivity and economic performance of the economy;\u201D\u2014there is an understanding in Australia that productivity is not a narrow aspect of the work that a Government is required to have input into; it is very broad\u2014\u201Creduce unnecessary regulation; encourage the development of efficient and internationally competitive Australian industries;\u201D\u2014 well, I would love the Government to have a view on encouraging the development of efficient and internationally competitive New Zealand industries\u2014\u201Cfacilitate adjustment to structural change; recognise the interests of the community generally and all those likely to be affected by its proposals; promote regional employment and development; have regard to Australia\u2019s international commitments\u201D\u2014read New Zealand\u2019s commitments\u2014\u201Cand the trade policies of other countries;\u201D and, \u201Censure Australian\u201D\u2014read New Zealand\u2014\u201Cindustry develops in ecologically sustainable ways.\u201D Those are the terms of reference that this side of the House would like to see for a Productivity Commission for New Zealand. I want us to catch up with Australia, but I actually would like us to have a slightly more ambitious target than that. We were caught up with Australia before Don Brash was the Governor of the Reserve Bank and other changes happened. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000289\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022c186d0a2-99f4-408b-9b4d-d484cf19724d\u0022\u003EI conclude by going to the regulatory impact statement; Minister Rodney Hide knows how much I love regulatory impact statements. I just remind this House of the problem definition that the Government formulated in order to justify the establishment of a Productivity Commission. It said: \u201CCurrently the Government seeks advice on productivity-related matters from Government departments \u2026 taskforces\u201D\u2014not very good ones in this case\u2014\u201Ccommissions of inquiry and international organisations\u201D. But something was needed. There was \u201Ca gap for a new and independent institution with specialised internal investigative capacity and a mandate to actively survey the views of a range of stakeholders,\u201D and \u201Cto undertake inquiries \u2026 The case for such an agency is made in the context of New Zealand\u2019s current economic challenges. These include: regulatory settings that are believed to be constraining investment and limiting productivity growth; R\u0026amp;D expenditure that is below the OECD average; future limits on resource use in relation to freshwater supply, marine space, fisheries, and the assimilative capacity of the atmosphere, soil, waterways and groundwater; relative low rates of participation in education and training amongst some population groups (eg, some age groups, socioeconomic groups, and M\u0101ori and Pacific Island peoples); inadequate infrastructure in some areas, and; low domestic savings and shallow equity and bond markets.\u201D That is the aspirational level of work that we want to see for a Productivity Commission, and when this bill matches that aspiration we will support it.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022 data-id=\u00222dfc103bada04e578fb8aa9a243b8368\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000290\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00222dfc103bada04e578fb8aa9a243b8368\u0022\u003ECRAIG FOSS (National\u2014Tukituki):\u003C/span\u003E First, I acknowledge our coalition partners in the confidence and supply agreement, which is where the New Zealand Productivity Commission Bill originated in at least a legislative sense\u2014I will touch on that in a minute. If I can be so bold, it is great for our friends in ACT to be talking about their core business of lower taxation, productivity, and economic reform\u2014perhaps more than some of the other issues we have been discussing recently. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000291\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EI had better make a couple of things clear. This bill is about not being afraid of debate. Traditionally some topics have supposedly been off the table. Well, New Zealand actually needs to discuss some issues, confront some issues, and make some choices. For New Zealand to make those choices New Zealanders and various agencies have to be informed of the upside and the downside of the various decisions and priorities the Government\u2014whoever the Government is at the time\u2014is making. There is always a trade-off, and those trade-offs tend to be the short term versus the medium to long term. Politicians often to fall into the short-term trap, which is a mortgage and an expense in the long term. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000292\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EI will touch base on what the previous speaker, Lianne Dalziel, talked about. She talked about the origins of this bill. She may recall the report on the Inquiry into the future monetary policy framework that was done by the Finance and Expenditure Committee in 2007, and tabled here in September 2008. Charles Chauvel was chair, and the majority was held by the Government of the time. The report covered much of what we are seeing in the debate today on this bill in terms of the inquiries for the Productivity Commission: inquiries into productivity-related matters, one-off reviews for existing regulations, reviews of the efficiency and effectiveness of regulatory agencies\u2014that is, risk and management\u2014regulatory impact analysis on a number of proposed new regulations, research into productivity-related matters to build up institutional knowledge within the organisation itself, and promote public understanding of productivity-related issues. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000293\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EI will quote something from the conclusion of that very good report, which the Finance and Expenditure Committee produced some time ago. This is why we need to look at productivity and at least put some of those decisions, trade-offs, and alternatives to the New Zealand public: \u201CIt is clear that increasing productivity, in particular, is critical to delivering non-inflationary economic growth. Such growth would boost the welfare of New Zealanders both directly, by raising incomes, and indirectly, by providing resources for other welfare-enhancing activities. We consider that, to the extent that it is consistent with the Government\u2019s other objectives, the Government should place a high priority on policy that supports the raising of New Zealand\u2019s productivity performance. The weight given to these other objectives should also be considered in the light of any impacts they may have on productivity.\u201D, and it goes on. The conclusion is very important, I think, and members should keep it in mind as they are speaking: there is no silver bullet. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000294\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003ENew Zealand faces many issues and many challenges. For whatever reason, we slid down to number 22 in the OECD. We cannot do much about changing where we were, but we can change where we are going. As I said earlier, some trade-offs from all sorts of sectors of our economy need to be looked at. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000295\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022659f6556-09a1-4ead-bc52-05cbdb4eaab8\u0022\u003EI finally quote from the report: \u201CThere is no obvious \u2018silver bullet\u2019 that will ensure a substantial increase in productivity growth. We found that lifting New Zealand\u2019s productivity performance will require us to get many different factors right.\u201D As Minister English noted earlier, this is but one of those dominoes that need to be lined up to be fixed, to be addressed, and to be debated with more information than we currently have. We need to strip out some of the political rhetoric and actually look to where we want New Zealand to go to and to how we can get there. I am sure that there will be a little bit of politics, but I am confident that, overall, members will on the whole recognise some of the issues. The debate will probably end up in the political realm of how we get there and how quickly we get there, and what political or economic trade-offs New Zealand has to make to start to regain its rightful place in the economic world. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022 data-id=\u00220164c6f7c7f7449287beec4666a5f74c\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000296\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00220164c6f7c7f7449287beec4666a5f74c\u0022\u003EHon DAVID CUNLIFFE (Labour\u2014New Lynn):\u003C/span\u003E I rise to support the New Zealand Productivity Commission Bill being referred to a select committee, pending further revisions as a result of the select committee process to broaden the mandate of the bill and to bring it further into line with the Australian Productivity Commission.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000297\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EThis is a Government bill. The establishment of a Productivity Commission was part of the confidence and supply agreement with ACT, and I acknowledge from the outset the healthy consultation that has occurred with the Minister for Regulatory Reform, the Hon Rodney Hide, and through him, with the Minister of Finance, the Hon Bill English. I commend the leadership of my colleague the Hon Lianne Dalziel, who spoke earlier. She has significant experience in this area, and has made a major contribution already to the evolution of thinking.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000298\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EIn my brief remarks today, I will recap on the areas on which there is substantial bipartisan agreement: the issue of productivity and the need for a Productivity Commission. I will then outline some of the areas where we need to do a little more work to establish consensus that would enable the Opposition to support the bill at its second and third readings.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000299\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003ELet me begin at the highest level by saying that the Labour Opposition fully agrees with Government parties that productivity is an absolutely crucial issue to take New Zealand forward. No economically literate person could disagree with the proposition that productivity is, over time, one of the most crucial drivers of our economic performance. The second point that I think we agree upon is the concept of having a Productivity Commission that is well resourced, that brings together some of the best academic brains and business experience, that is well staffed, that is empowered to take a long-term view, that has a strategic perspective, and, in so doing, is above day-to-day politics. I think there is broad agreement around the House that that would be an extremely welcome addition to the country\u2019s economic architecture and would potentially be in the public interest, which is potentially a very good thing. Labour stresses the importance of the breadth of the mandate, the long-term strategic view, the independence of the Productivity Commission from the Government of the day, and, importantly, the fact that it must be able to work from a full and proper definition of productivity.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000300\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EI will now speak about some areas where I think there remains work to be done to establish agreement. At the most fundamental level, I believe consensus turns upon the respective definitions of productivity that are employed across the House. The classical definition, which I think the Minister and I would agree comes from the old Economics 101 or 102 Cobb-Douglas production function, for the aficionados there, is that productivity is a function\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000301\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022b992cdfe71eb4d53a179407fd49bf542\u0022\u003EAaron Gilmore\u003C/span\u003E: That\u2019s priceless.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000302\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00224e7345032bba44f1b95ffc3731667526\u0022\u003EHon DAVID CUNLIFFE\u003C/span\u003E: I thank Mr Gilmore; I am glad someone remembers it. Aaron wrote it; sorry. Mr Assistant Speaker, I withdraw and apologise for an omission. It was the \u201CCobb-Douglas-Gilmore\u201D production function, so ably associated with the Hon Tim Groser who wrote the first corollary to it. We appreciate the esteemed input of those giants upon whose shoulders the Government now stands. But I come back to the point. Cobb-Douglas says that productivity is a function of capital, skills, which lead to a thing called multi-factor productivity, and technology. In other words, a broad and holistic view is required. The New Zealand Treasury\u2014and the Ministry of Economic Development on a good day\u2014agrees with that and extends the definition to include entrepreneurship and the use of natural resources, which is particularly important for an agriculture-based economy like New Zealand. We think that that is perfectly fair, reasonable, and sensible, and that there is now a literature that goes back a long way that has a strong evidential base, which can allow us to have a good, evidence-based, bipartisan discussion about what is good for New Zealand.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000303\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EThe same broad conception is exactly what underlies the Australian Productivity Commission. The Hon Lianne Dalziel read from the Australian Productivity Commission legislation, and I will again quote from the commission\u2019s legislative instructions: \u201CImprove the productivity and economic performance of the economy; reduce unnecessary regulation; encourage the development of efficient and competitive Australian industries;\u201D\u2014so it has an industry focus\u2014\u201Cfacilitate adjustment to structural change; recognise the interests of the community; promote regional employment and development; have regard to Australia\u2019s international commitments; and ensure Australian industry develops in ecologically sustainable ways.\u201D That is big-picture thinking and it reflects the full range of the factors that are internalised in the \u201CCobb-Douglas-Gilmore\u201D production function.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000304\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EI cannot help but point out that that stands in sharp contrast to the opening speech made by the Minister in charge of the bill, Bill English. He talked about three functions of the commission. I lament the fact that all three were couched in terms of deregulation. The concept of regulation and deregulation is a bit like having a hedge. We need a hedge to keep the barbarians out or down sometimes, but we want to prune the hedge so that it does not overgrow the garden. That is regulation in a nutshell. We agree with the fact that we have to keep pruning the hedge; otherwise the good old Civil Service has a tendency to add layers. That is bipartisan. But it is not bipartisan to take that a step further, get the balance wrong, and say that the primary\u2014let alone entire\u2014function of a Productivity Commission is to be some kind of razor gang against red tape in disguise.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000305\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EI note that the ACT Party was not able to get its regulatory razor gang up in another context. I believe well enough of the Minister Rodney Hide. I am prepared to give him the benefit of the doubt. I am prepared to go into this process with my colleagues, believing that he has an open mind, that he will read the literature, that he will listen to the submissions, as will Bill English, and that this Parliament, working together for the good of New Zealanders, will come up with a commission and legislation that is above day-to-day politics, that puts the long-term national interests first, that picks the best out of the Australian model, and that takes the best lessons from the literature, including the third volume of thoughts according to Aaron Gilmore or Lord Maynard Keynes. I get the two mixed up. I think it was volume 3 of Gilmore. I believe we must do this outreach\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000306\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022cbc37df2-57ae-4536-94ed-a2e39eecd585\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022561e3d0fc4f346648f0f392051b8b086\u0022\u003EPhil Twyford\u003C/span\u003E: Keynes was better looking.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000307\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002208f4ace38e264dda9bbe5619df31f117\u0022\u003EHon DAVID CUNLIFFE\u003C/span\u003E: Keynes was better looking, but Gilmore was more famous. We are truly honoured that he has sought to grace this Chamber with his presence today for this debate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000308\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EI say to \u201CSir Aaron\u201D, as no doubt he will soon be known to all, that we appreciate his condescension to come to the House on this matter, and regret only that his colleague \u201CSir Timothy\u201D is not able to similarly grace the Chamber today\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000309\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00225f06b0665f104a2a8811cb371661c464\u0022\u003EAaron Gilmore\u003C/span\u003E: I\u2019m absorbing his presence.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000310\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00221f667c758ade4c4195a7125d29142507\u0022\u003EHon DAVID CUNLIFFE\u003C/span\u003E: \u2014but I know that \u201CSir Aaron\u201D speaks for both and that he taught him everything that he once knew.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000311\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EIn summing up, I point out that this potentially is a very important step forward for New Zealand. Those listening at home will note that there is a degree of levity and good humour in the House because MPs, contrary to public opinion, enjoy the opportunity to agree with each other on some things. We are not hired killers. We do not come to Wellington simply to run each other down. Across the House we do want to put the national interest first and do what is right for New Zealand, but sometimes we disagree about how to get there.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000312\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EHere is the opportunity for Parliament to agree on something that is bigger than politics. We are three-quarters of the way there already. We agree on the nature of the problem, we agree on most of the definition of productivity, we agree on the potential advantages of having a bipartisan or multipartisan, enduring commission that rises above the day to day and can do the mahi, which is good news. All that we have to agree on now, essentially, is the balance between the functions of the commission. I am prepared to go into the select committee with my colleagues believing that wisdom will prevail, that we will hear from submissioners in a democratic process, and that the Government will go to Cabinet with an open mind willing to listen to those submissions.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000313\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e0192ed9-5715-4f6c-bd52-8db4f3466087\u0022\u003EBut I offer this word of caution to the Government: if this is not that good-faith process, if the consultation that we have valued is not honoured by a fair and balanced assessment of those submissions, and if Cabinet does not listen to the best of the literature and the best of those submissions and show good faith on further revisions, then the Opposition will, more in sadness than in anger, not be able to support this bill through to the second and third readings. Like my colleague, I hope that will not be the case. I hope that we can reach out across the Chamber and do something that is patently good for New Zealand, and put the national interest ahead of politics. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022 data-id=\u0022c3bdeb904fb147909cbdde437154333e\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000314\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022c3bdeb904fb147909cbdde437154333e\u0022\u003EDAVID CLENDON (Green):\u003C/span\u003E Kia ora koutou. The establishment of the Productivity Commission, which we are debating in the New Zealand Productivity Commission Bill\u2019s first reading today, has been proposed by the Government in fulfilment of its confidence and supply deal with one of its support parties, the ACT Party. It is entirely appropriate that the Government should honour a promise to a support party. We are told that the proposal will initially cost something over $2 million to establish, and there will be an ongoing cost of some $5 million annually. From our view it is difficult to assess how expenditure at that level would generate much value to taxpayer of New Zealand, given the proposed structure, purpose, and functioning of this commission. Regrettably, we do not share the expectation or the hope expressed by the Labour Party that this bill could be amended and melded into something that would achieve some value, purpose, or positive outcomes for the taxpayer. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000315\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EClause 7 tells us that the purpose of the commission will be to provide advice to the Government on improving productivity in a way that is directed to supporting the overall well-being of New Zealanders. It is a very short purpose that perhaps obscures as much as it reveals, unlike the equivalent Australian body, the Australian Productivity Commission, which has been referred to. That body is tasked with fulfilling a much more comprehensively stated and better-developed purpose. This proposed organisation could simply be used as a mechanism to stifle some important regulatory change before parliamentary consideration. It could serve to actively promote cutbacks to Government spending with very little reference to long-term social, economic, or environmental cost. It could reinforce outmoded, destructive, and well-discredited neo-liberal approaches to economic growth. In the absence of a much more clearly defined purpose, this bill will, ironically, simply create a new bureaucracy\u2014a bureaucracy that could become little more than a publicly funded think tank for ACT Party policy and the advancement of that policy. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000316\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EIn our darker moments, we in the Greens considered whether it would be a good thing to have a well-funded, well-resourced think tank with some millions of dollars from the public purse to further develop and advocate for Green Party policy. However, our moral compass would deny us such a thing. It would preclude such an abuse of proper process, and so too it should exclude the establishment of this proposed commission. We are told by Treasury in the summary to this document that the need for the Government to receive advice on productivity-related matters is not questioned, and that the question is solely whether the source of that advice should be a new agency that is statutorily independent. The question of independence is a troubling one in the context of this bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000317\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EWe are told that the design of the commission has been heavily influenced by the Australian Productivity Commission. There are certainly similarities, but there are also some significant and interesting omissions from the current bill. For example, the Australian Productivity Commission is obliged to recognise the interests of the community generally and all of those likely to be affected by its proposals. That is quite a powerful constraint on the Australian Productivity Commission, obliging it to be much more focused than a New Zealand commission charged only with a quite amorphous and undefined obligation to support something called \u201Coverall well-being\u201D. The Australian Productivity Commission is required to promote regional employment and development. Although a similar expectation might be implied from the text of this bill, there is nothing that requires it to specifically address regional or provincial opportunities or concerns. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000318\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EA list of some 20-odd matters is described in the explanatory note to the bill that the commission may investigate or look into, and natural resources including sustainability is one of those. The word \u201Csustainable\u201D does not otherwise appear in this legislation. If we contrast this with the Australian Productivity Commission, we see that amongst its key policies and core principles it is obliged to \u201Censure Australian industry develops in ecologically sustainable ways\u201D. Rather than having a very cursory passing reference to sustainability that is more about form than substance, in the Australian example there is an absolute imperative to consider ecological sustainability. The Australian commission is also obliged and required in all its reports to provide a variety of viewpoints and options representing alternative means of addressing the issues in the report. That would give reports from such a commission some real value and substance. It would present a range of options and views that are well supported, well researched, and well presented. Nothing in this bill indicates that we can expect any such a broad view, such an engaged view, from this proposed commission. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000319\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EAs I said, we are told that this is to be an independent agency, but the provisions of the bill suggest that it must be working to a very peculiar definitional view of what constitutes independence. The three or four commissioners who would head the commission would be appointed by the Governor-General on the recommendation of the Minister of Finance. Clearly, they will be beholden to the Minister for their positions as the heads of the commission. Clause 9 tells us that the functions of the commission are to carry out a range of tasks and they will be carried out on referral to the commission by the responsible Minister in conjunction with relevant portfolio Ministers. So we have an organisation set up\u2014manned by the Minister, if you like, or \u201Cpersoned\u201D by the Minister\u2014that will be given its marching orders by the Minister in terms of what it ought to investigate. We are told in clause 11 that the commission must perform its functions in accordance with a work programme, which, again, is determined by the Minister. In the terms of reference in clause 12, the commission, in carrying out its functions, must act in accordance with the terms of reference set by the referring Ministers for each inquiry, review, and regulatory impact assessment. I fail to see any independence in a body established by the Minister when its agenda and work programme are set by the Minister, and it responds to terms of reference that are also set by the Minister. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000320\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EWe have heard some discussion from Mr Cunliffe about defining productivity, which is a well-known, well-rehearsed concept in economic terms. Interestingly, though, this bill does not seek to offer any definition of productivity, so I ask which of the multiple definitions of productivity will it work towards. Our own statistics department, which is clearly responsible for gathering information about productivity in New Zealand and for comparing and contrasting us with other countries, has an interesting analysis. It offers a definition of productivity, then, quite usefully, offers some statements about what productivity is not. The department states that productivity is not a measure of value for money. The concept is also not a measure of effectiveness, it is not a measure of competitiveness or profitability, and it is not a complete performance management tool. It is a very constrained, a very limited mandate, and a very limited definition, and the commission would have an equally limited mandate\u2014which returns us to my original point. We see this as being a very managed, controlled thinktank that would be invited to present only very predictable and one-sided views. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000321\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003ERather than productivity, which is a useful but also a very limited concept, something we think would be of much more value and interest would be to assess the performance of our economy under the framework of sustainability. It is well proven and it is multifaceted. It is a framework that allows us to interrogate and evaluate the operation of the economy in terms of everything from the efficient use of resources through to the appropriate application and development of people skills and attitudes. It is a framework that allows us to look very closely at procurement, which was mentioned earlier in the House this afternoon. It would allow us to generate whole-of-life costings, rather than simply looking for the cheapest buy on any given day. It would allow us to incorporate measures and valuations of natural capital, without which the rest of our economy would fail. In the absence of any consideration of the effect of economic activity on natural capital, we would generate nothing but problems for ourselves. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000322\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022e959f20f-3de7-4f54-8577-8ea78d72c3dd\u0022\u003EThere is much more to be said, and no doubt it will be said because it is apparent that this bill will be referred to a select committee, given the support that it is getting from the House. It will be interesting to see whether the support from parties other than those in Government will be sustained when we see the final shape of this legislation. Kia ora koutou.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022 data-id=\u0022dd5605fe1ee445e7a63c732588da40eb\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000323\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022dd5605fe1ee445e7a63c732588da40eb\u0022\u003EHon RODNEY HIDE (Leader\u2014ACT):\u003C/span\u003E I rise on behalf of the ACT Party to support the New Zealand Productivity Commission Bill. The introduction of this bill is a matter of considerable pride for the ACT Party. We have long believed that if New Zealand is to close the income gap with Australia and other high-income OECD countries, and is to achieve the living standards that we all aspire to, we need to have policies and institutions within New Zealand that are of the highest quality. Developing these policies and institutions requires robust and rigorous analysis, and also the involvement of the wider community. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000324\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EA focus on productivity is at the heart of the ACT Party\u2019s confidence and supply agreement with the National Government. The 2025 Taskforce was asked to advise the Government on how New Zealand could work to close the gap with Australia and also to measure progress towards achieving that objective. But to really get to grips with these issues, we need a detailed examination of the structure and performance of the various sectors of our economy and the institutions within which they operate. That is why we made the exploration of the concept of a New Zealand Productivity Commission a key objective in our confidence and supply agreement with the National Government. We saw the great work that the Australian Productivity Commission had completed across the Tasman and we saw a clear gap in New Zealand\u2019s public sector. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000325\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EThe Australian Productivity Commission has played a valuable role in tackling the complex and challenging social, economic, and environmental issues facing Australia. It has been used across the Tasman to evaluate the costs and benefits of existing policies and look at alternatives. Most important, it has considered matters dispassionately and openly in consultation with the public and the various stakeholders\u2014and this is important\u2014at arm\u2019s length from the Government. The results speak for themselves. The Australian Productivity Commission has consistently striven to make better policies that serve the long-term interests of the community. The New Zealand Productivity Commission Bill will produce similar outcomes here. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000326\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EAs the Minister of Finance has said, the intention is for a New Zealand commission to have the scope to explore a very wide range of issues across both the public and private sectors. The aim is also that the commission will work independently and transparently, consulting with public and private bodies as it sees fit. It will be able to draw conclusions and make recommendations free from political interference. Most important, the commission\u2019s clear focus will be \u201Cthe overall well-being of New Zealanders.\u201D \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000327\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EI am sure other members of the House will agree that no shortage of issues and challenges face New Zealand families and New Zealand businesses. This House will always be the pre-eminent body for deciding how we, as a community, respond to these challenges. The establishment of the Productivity Commission will give this House an additional stream of advice. It will also allow Governments of the day to have important matters concerning the future direction of this country considered in a non-political and non-partisan venue by experts. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000328\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EWorking towards the New Zealand Productivity Commission, I have had the pleasure of meeting the chair of the Australian Productivity Commission, Mr Gary Banks, who offered us some key insights. First, to be useful, the commission should focus on the issues of public policy that Ministers believe will be of most assistance to the Government of the day. The second insight was that the commission should start out modestly and build credibility over time through the quality of its work. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000329\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EThese insights are reflected in this bill in two ways. First, the terms of reference for the commission\u2019s work will be determined by the relevant Ministers. Second, the legal framework setting up the commission is deliberately minimalist. It will not interfere with the advice offered by the commission in its reports. A simple legal framework maximises the chance that this House will focus on the quality of the reports and not the structure of the commission itself. This should avoid the need to periodically update or change the legislation establishing the commission. That is why we have taken the approach of distilling the essence of the Australian legislation as best we can, without all of the specific Australian detail. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000330\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EI record what a pleasure it has been to work with the Minister of Finance and my other Cabinet colleagues on developing these proposals for a New Zealand Productivity Commission. I acknowledge their hard work and commitment here today. I have appreciated especially the support from the Minister of Finance, who has helped and supported me in this work right from day one. I am particularly proud that together we have managed to find the resources for a New Zealand Productivity Commission from within a number of current baselines, thereby avoiding the need to place additional burdens on the taxpayer. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000331\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bc1e9f65-e08b-4939-867c-22ef093e2a4e\u0022\u003EI also acknowledge the contributions that the other political parties have made to the bill, in particular the sterling work of Lianne Dalziel when she was a Minister, and also David Cunliffe, with whom we have had discussions. I can certainly say from the perspective of the Government that we are very interested in getting cross-party support for the Productivity Commission at the select committee. It is great that a Labour member will chair the Commerce Committee, which will look at this bill, particularly a member with the experience of Lianne Dalziel. I say, though, that it is important that everyone, not just Government members, approaches the issues around the Productivity Commission with an open mind. I hope that Labour members of the select committee will listen genuinely and openly to the submissions that are made so that we, on behalf of the country, can get the very best result for New Zealand. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022 data-id=\u002220666b79ce90407c855a8b32e4635686\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000332\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002220666b79ce90407c855a8b32e4635686\u0022\u003EHONE HARAWIRA (M\u0101ori Party\u2014Te Tai Tokerau):\u003C/span\u003E Kia ora t\u0101tou katoa e te Whare. The M\u0101ori Party will support the New Zealand Productivity Commission Bill, which will establish a commission to ensure there is a greater emphasis on productivity in both the private sector and the public sector. We do so, because M\u0101ori society is traditionally based on the principle of collective commitment and hard work. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000333\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EOne of our better known whakatauk\u012B is \u201CMe moe i te tangata ringa raup\u0101\u201D\u2014marry a man with blistered hands\u2014that is, marry a man who knows how to work. There were no politicians back then. Indeed, on sheer numbers alone, the ability of marae to handle major events with responsibility for the catering, accommodation, entertainment, safety, health, and hygiene of large-scale crowds is an impressive demonstration of the productivity that carries over into other spheres of M\u0101ori activity in tourism, farming, forestry, aquaculture, business, and even politics. In fact, we kicked off our 2008 election campaign with the slogan that we wanted to make the nation great again by investing in productivity on a grander scale to promote social, cultural, and economic development for M\u0101ori, and for the wider public, and we said that that was in the best interests of the nation and economy as a whole. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000334\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EA key interest for us is the non-profit sector. We note that the Government currently invests $3.5 billion in this sector every year through contracting out services to non-profit organisations. Wh\u0101nau Ora aims to take that principle to another level again. At the moment, providers survive on multiple contracts with multiple funders, which means that they spend more time writing up contracts and trying to get them approved, restructuring the operations to meet new standards, trying to meet the compliance requirements, and then worrying about whether they will get the next contract, all of which limits their ability to respond to the needs of wh\u0101nau. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000335\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EI commend Tariana Turia for Wh\u0101nau Ora and her work on trying to reduce the logjam by collapsing contracts into one and ensuring that wh\u0101nau actually get the help they need from the best people in the business. It looks like the Productivity Commission will be using the same model, by pooling together its funding from the budgets of 29 Government agencies rather than by costing taxpayers new money. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000336\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EMind you, as with a lot of other things we are also interested in, we ask who and what will define exactly what productivity is. We see that the Public Service Association supports the idea of having a body that can provide regular reports on efficiency, effectiveness, and service delivery in Government agencies across the whole economy. But, like us, it is also keen to know how State sector productivity will be measured and by whom. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000337\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EThe M\u0101ori Party is also keen to know what the balance will be between the economies of scale going through the central administration and the benefits of contracting into local communities, which understand local issues better than central government ever can. I say that, because uncoordinated actions taken by different Government agencies are widely known throughout the country to be costly, time-consuming, effort-wasting, inefficient, and confusing, and they often duplicate actions taken by other Government agencies. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000338\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EFinally, talking about definitions of productivity, we would also like to see the terms of reference include an audit of all service providers for their commitment to kaupapa M\u0101ori, and an audit of all legislation for its commitment to Te Tiriti o Waitangi. Some great things are happening out there, such as the M\u0101ori Health Innovation Fund, which has invested $20 million in developing innovative Wh\u0101nau Ora - based health services, and in developing Wh\u0101nau Ora itself. But there is also a need to put some focus on what works in other areas, what does not work, and how at the end of the day the Government can support services and initiatives that deliver high-quality outcomes for wh\u0101nau everywhere. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000339\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00227883c85e-a5bb-4a12-9962-80df55af0ecd\u0022\u003EOn that basis, the M\u0101ori Party will support this bill at its first reading.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022 data-id=\u002292c277292bb34b078cf0784bf1644111\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000340\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002292c277292bb34b078cf0784bf1644111\u0022\u003EJO GOODHEW (National\u2014Rangitata):\u003C/span\u003E I rise to take what I can assure my colleague on the other side of the House will be just a brief call on the New Zealand Productivity Commission Bill. The commission will be an independent Crown entity with the purpose, not surprisingly, of improving productivity, but in both the private and public sectors, and improving the overall well-being of New Zealanders.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000341\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022\u003EWhat underpins this bill is an awful lot about what National is all about. National is working hard to secure a brighter future for all New Zealanders, and, by golly, we got that mandate at the last election. We are focusing on lifting long-term economic growth to create jobs, boost incomes, raise living standards, and provide world-class public services to Kiwi families, who deserve nothing less. We want to ensure that growth is based on private sector investment and exports rather than unsustainable increases in Government spending and borrowing, such as those we saw over the last decade.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000342\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022\u003EThis bill is but one of a number of tools in the tool kit that the National-led Government has to achieve its goals to deliver a better future for New Zealanders, and we are very happy to be working with coalition confidence and supply partners towards this end. \u201CProductivity\u201D is an oft-used word, and sometimes I worry that when we say to New Zealanders that we intend to improve productivity, they worry that we are simply telling them to work harder and work longer hours. That is, of course, not the case. We are saying to New Zealanders, who already work well, work long hours, and work hard, that we want to find ways for New Zealand to become more productive and for New Zealanders to take home a higher wage or salary.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000343\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002260200136-9d63-4a82-b4f5-c00411adb1fd\u0022\u003ESo, without any further ado, I commend this bill to the House. I know that other members have contributions to make, as well, and I am looking forward to this bill being, as I have already said, one more tool in our tool kit. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022 data-id=\u002236d13b2c88c24fb49449e71acb9eb051\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000344\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u002236d13b2c88c24fb49449e71acb9eb051\u0022\u003EHon DAVID PARKER (Labour):\u003C/span\u003E I rise on behalf of Labour. As earlier speakers have said, we are supporting the referral of the New Zealand Productivity Commission Bill to the select committee. Before dealing with some of the issues that arise from it, I will respond to one of the comments made by the previous speaker, Jo Goodhew, who asserted to this House that one of the things that went wrong in the last decade was an increase in borrowing. What a short memory she has. If that is the level of intellect that is going into the establishment of the detail of the Productivity Commission, it really does not portend well for its future. The reality is that the previous Government reduced gross Government debt from 38 percent of GDP to 17 percent of GDP, and net debt, once we took into account savings through the likes of the Cullen fund, was virtually zero. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000345\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EOf course, that is the stand-out difference between the economic performance of New Zealand and that of countries like Japan, the United States, Great Britain, Greece, Portugal, and Spain. All of those countries have high Government debt, and as a consequence they have very little room to move in terms of what their Governments can do, compared with New Zealand. The National Government inherited a position of low debt, not high debt. So, I say to Ms Goodhew that she was just wrong when she made that assertion. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000346\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EParliament agrees on just about all sides that we need to improve our productivity output in New Zealand in order to improve the well-being of New Zealanders and fund the sorts of services that we think Governments should fund, in terms of education, health, superannuation, and the like. If I have a concern about the way in which the Productivity Commission may turn out, it is that it will be focused unduly on deregulation. The Minister Bill English primarily talked about deregulation. I heard Rodney Hide comment that it will \u201Cbegin modestly\u201D, using his words. I think that might be a code for there being an undue focus on deregulation. If the Productivity Commission is to work, it must have a function that goes beyond deregulation. I really urge the Government to have a broader focus. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000347\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI think it is absolutely clear that the Government needs some help in terms of building productivity, because it has made some bloomers so far. It has certainly made some terrible mistakes.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000348\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002217e2810824004968bef8fd6379609db0\u0022\u003EDavid Bennett\u003C/span\u003E: Get a life, mate.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000349\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d6ffeb17c8d04c7eb21371b94f5141f9\u0022\u003EHon DAVID PARKER\u003C/span\u003E: Well, we hear criticisms again from David Bennett, saying that is not so. Well, I ask him whether he thinks that the Australian Productivity Commission would have stood and commended National for reducing savings in New Zealand by cutting KiwiSaver, at the very time that the Australian Government has been increasing savings in Australia. Currently, 9 percent of gross salary or wages is saved in compulsory savings in Australia, and that is going up to 12 percent. The Australian Government says it has an effective Productivity Commission, and that move has certainly not been criticised by the Productivity Commission itself. But what did the National Government do here? It cut KiwiSaver contributions. What did it do in terms of public sector savings? It stopped making contributions to what colloquially used to be called the Cullen fund, which could now be called the English fund, because it is getting so small in terms of contributions. In terms of savings, this Government has made some wrong moves. Let us hope that if it gets from advice from a Productivity Commission, it will do better on that front. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000350\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EIf we look at where else the Government is going wrong, we see it is really focusing on an extractive economy. The National Government is focused on extractive industries, be it agriculture, which extracts value from the land, or mineral extraction. Both of those industries are very important to New Zealand, and I am not decrying their importance. But New Zealand will not approach the wealth of Australia or that of other, more successful developed nations on the back of farming or extractive industries. Indeed, it pains me to reflect on the fact that the first 18 months of this Government\u2019s economic agenda have been so much focused on increasing mining in national parks and the like. According to the Prime Minister, in his statement to Parliament at the start of this year, mining was to be an important part of the economic step change for this country. It is absolutely plain that the Minister for Economic Development, Gerry Brownlee, saw mining as his cornerstone policy. Just this week we have seen that ambition dissolve. The Government has resiled completely from mining in national parks. That is a good decision, because it was never going to make the major step change that is needed. It was inappropriate in any event, as national parks should not be mined. However, it shows that the Government does not have any plan as to how it will increase New Zealand\u2019s productivity in a way that bridges the gap between New Zealand and Australia. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000351\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI want to come back to that gap, because we heard Rodney Hide make reference to it in his speech. The problem is that other than the mantra that we had at the time of the election that National would bridge the gap with Australia by 2025, we have had no deliverables and no articulation or specificity as to how we are to measure progress towards that goal. In fact, Gerry Brownlee went so far as to say in Parliament this week that it is no longer a goal; it is just an aspiration. We had him at a select committee recently, saying the Government had no subset by which it could be held accountable as to whether it was achieving that goal. We all know that by 2025 Gerry Brownlee will not be here, and Bill English will not be here. I have no plan to be here; I do not think many of us plan to be here by 2025.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000352\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226984d661-9f65-4ed6-b29c-3285b598582d\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022a3dcbda531e94c5d8fd532f80ef78679\u0022\u003EHon John Carter\u003C/span\u003E: Some of us do.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000353\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022d58e7ce9a476438dab81b947c993c919\u0022\u003EHon DAVID PARKER\u003C/span\u003E: Well, what a sad life Mr Carter from Northland must have, if he plans to be here in 2025\u2014and it would be sadder still for the country. The reality is that the Government has no subset of that 2025 goal by which it can be held accountable. We have nothing to judge the rhetoric against. Maybe the Productivity Commission, if well designed, will provide a bit of input into the Government and at last give it some direction. Certainly, the Government has none of its own. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000354\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EI have talked about some of the mistakes that have been made with regard to savings and an over-reliance on extractive industries. It is clear that we have to build productivity in our other export industries. Again, I contrast what Australia has done under its Productivity Commission, which ours is said to be modelled on, with what the Government has already done. Australia has a research and development tax credit. It has long had a research and development tax credit, in addition to savings to encourage depth in capital markets and, therefore, more money being available to businesses to borrow and spend on increasingly productive plant and equipment. Australia can do more of that, because it has good savings. In addition to that, it encourages businesses to take advantage of those savings and the availability of capital, through a research and development tax credit. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000355\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EWhat did the current Government in New Zealand, a National Government, do after it took office? It did the opposite of what Australia does to improve research and development expenditure\u2014to increase the sort of expenditure that improves productivity over time. The National Government went in the opposite direction of that, and it removed the research and development tax credit that was legislated for by us, pretending instead that we are better to just have tax cuts weighted to those who are already the more wealthy people in society as a substitute for a tax credit. If that was the answer, why is that not the answer in Australia, the economy of which has patently performed better than New Zealand\u2019s recently? The Government abolished the research and development tax credit and has replaced it in the latest Budget with a sort of voucher-based system that goes some of the way, but not nearly far enough. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000356\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003EThe other thing that the Government has done\u2014and I am pointing out all of these things because it seems to me that the rhetoric of the Government about wanting to improve productivity flies in the face of common sense in a lot of areas\u2014in the latest Budget is to cut the depreciation allowances for investments in short-lived assets. Short-lived assets are things like computers, which we need to have for increasingly sophisticated service industries and productive industries. The Government reduced the rate of depreciation that a business can claim in respect of those short-lived assets. Again, to me that measure seems to go in exactly the opposite direction of that which Australia pursues through its Productivity Commission. If I have a suspicion here\u2014and we are embarking on this journey and voting for this bill at its first reading, and we do want to see something put in place that is enduring, if it can be agreed\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000357\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022893adc11-ce4e-419c-a079-08f04b3d75f5\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022da862208dc4442faa90137123d3c3c87\u0022\u003EMr DEPUTY SPEAKER\u003C/span\u003E: I am sorry to interrupt the honourable member, but his time has expired.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022 data-id=\u0022312d7e1df26c460889d04a65c14f89a2\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000358\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022312d7e1df26c460889d04a65c14f89a2\u0022\u003EDAVID BENNETT (National\u2014Hamilton East):\u003C/span\u003E When we look at the New Zealand Productivity Commission Bill, we see that it reflects a lot of the sentiment that the ACT Party has been pushing, and that is part of the coalition agreement.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000359\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EI want to counter a few of the comments made by the previous speaker, David Parker, who said an absolute load of rubbish in this House. If anybody in the country needs a lesson on economics, it is those Labour Party members. They put us in the hole before the rest of the world, and in a bigger hole than the rest of the world. Now it is up to us to try to get us out of that hole.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000360\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThe Productivity Commission would have been great when Labour was in Government, because it would have told Labour how stupid its ideas were about what it was investing in and what it was doing. It would have achieved its purpose best under the previous Labour Government, because under a National Government we will potentially not have the degree of economic decline that we had under Labour with its way of mismanaging the economy.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000361\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThe previous speaker said that we will not get to where Australia is on the basis of extractive industries. What is the Australian economy built on? It is built on mining, which is an extractive industry. What is the New Zealand economy built on? It is built on agriculture, which is an extractive industry. We will get there on the basis of extractive industries.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000362\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThe Labour Party looks to some God-like company that will be founded in New Zealand and provide some kind of technology or visionary thing that will change the world, and it will all be based in New Zealand. I tell Labour to get in the real world. When one earns money, one earns it through hard work and doing the basics right. New Zealand does the basics right in agriculture. We do it well, we do it with technology, and nobody else can compete with us at this stage. That is how we will make money. It is not made by dreaming that something will happen. Nobody in the Labour Party has ever made any money, anyway, so Labour would not know what it is like to go out there, earn something, and try to build a country or an economy. That is the basis of it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000363\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EThe Productivity Commission is an idea that has been formulated. It is similar to what is in Australia. Its main functions will include inquiries into productivity-related matters and reports back to Ministers; one-off reviews of existing regulations; reviews of the efficiency and effectiveness of regulatory agencies; regulatory impact analyses of a small number of proposed new regulations; research into productivity-related matters to build up institutional knowledge; and promoting public understanding of productivity-related issues. Those are some very strong functions and broad aspects that this Productivity Commission will be engaged in.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000364\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022eaf79431-1033-44f1-a633-22633da52c0d\u0022\u003EWe look forward to the bill\u2019s progress through this House and its implementation in the New Zealand economy. Thank you.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022 data-id=\u00226de3339c2353496c990c414e94b37567\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000365\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226de3339c2353496c990c414e94b37567\u0022\u003EGRANT ROBERTSON (Labour\u2014Wellington Central):\u003C/span\u003E Like other Labour speakers, I note that we will be supporting the New Zealand Productivity Commission Bill being referred to a select committee. That is the extent of our support at this time, and I want to go into why we are limiting our support and also to talk about some ideas for how we might be able to promote a productivity commission bill that we would support being passed all the way through the House. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000366\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIdeally, the three key elements that we need to talk about are an independent Productivity Commission, a well-resourced Productivity Commission, and a broadly mandated Productivity Commission. Those are the three areas where I have concerns about the current proposal. But, overall, Labour members want to support this bill, because we share the view that has been expressed around the House today that improving the country\u2019s productivity is critical to the future well-being of New Zealanders. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000367\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIt was interesting that in 2003 the OECD, in one of its reports on New Zealand\u2014it was looking back over a period in which both National and Labour had been governing\u2014stated: \u201CThe mystery is why a country that seems close to best practice in most of the policies that are regarded as the key drivers of growth is nevertheless just an average performer.\u201D The OECD went into various areas to talk about property rights, the relatively small public sector compared with the rest of the world, low levels of corruption, low labour costs, a flexible labour market, and the ease of doing business in New Zealand being the second-best or best in the world through that period. All of those situations were in place in New Zealand, but, seemingly, we could not get past what has been called by some academics as the \u201Cproductivity paradox\u201D. There are a number of reasons for that, which have been talked about subsequent to that report. They are some of the kinds of issues that I think a Productivity Commission would need to take on. So this is an important aspect of the Government\u2019s programme. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000368\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIt is somewhat ironic that a bill to create some new bureaucracy is driven by the ACT Party. Having previously heard from the ACT Party about the evils of backroom public servants, and, indeed, from National as well, it is ironic that we stand here today to promote a bill to create a new bureaucracy. Clearly, backroom public servants have something to offer, and I am sure we will all appreciate the work that will go into that from the Public Service. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000369\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EOn that point, I have some concerns about the question of resourcing. I appreciate the fact that nobody wants to add a great deal more cost on to the taxpayer to create a Productivity Commission. But simply by shuffling the money around from other agencies, I am concerned about what will now not be done by those agencies and whether the Productivity Commission will be sufficiently resourced. With a budget of around $5 million to do that work, as the Minister of Finance said at the start today, that is questionable. David Clendon, on behalf of the Greens, asked whether the Productivity Commission would be able to do the things that we all want it to do. I think we need to ensure that we invest in creating a Productivity Commission that is able to undertake inquiries, able to undertake studies, and able to provide independent advice. We need to make sure it is resourced to do that. We cannot penny-pinch on that at the beginning, because in the end it will not deliver to us in the way that we all want it to. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000370\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EA number of people have mentioned the importance of the Australian Productivity Commission, its role, and the breadth of its mandate. When we look at the bill and the Productivity Commission\u2019s functions it is interesting to note that the second and third functions mentioned are all around the question of regulatory matters, and they were the ones that the Minister of Finance highlighted today. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000371\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EIt is vitally important that we put on the record of the House today that if this Productivity Commission is simply an exercise in deregulation and creating a smaller public sector\u2014all of the messages that we hear consistently from the ACT Party\u2014then it is not something that this side of the House can support. It must have a broad definition of what productivity is. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000372\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ESome people say that productivity is just output divided by hours worked\u2014that will show how productive we are. I know that kind of definition is not the one that is understood by most people in the House today. But if we allow ourselves to be narrowed down, we get drawn into debates about things that in the long term will not drive forward the economy. They will not make the economy more productive. That is understood inside the New Zealand Public Service. Both the Department of Labour and Treasury have their own areas of productivity that they believe that New Zealand should be working on. It is interesting to note that a couple of the really important areas that are picked up on by both Treasury and the Department of Labour are innovation and skills. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000373\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EI will talk about the skills matter now, because the absence of a skills strategy from this Government has been one of the yawning gaps in attempts to drive forward the economy. We must have the people who are going to do that. We need a proper skills strategy and proper investment in skills and training. I would like to think that the Productivity Commission will look at the question of skills and training as one of its earlier tasks. I would like to think that it will look at workplace training, the tertiary sector, and secondary schools, and about how we are developing a skilled workforce, because that is now recognised as being one of the key drivers of productivity. We need to make sure that is included in the bill as well. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000374\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EInnovation, I think, is a particularly important part, not only innovation in the workplace but the general place of innovation, research, science, and technology in New Zealand. David Parker has already talked about that today. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000375\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003ESo those are elements of productivity that are much broader than the question of regulation. They are much broader than the question of how to shrink down the size of the State sector or the public sector. They are actually the drivers and the important issues that need to be addressed by the Productivity Commission. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000376\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EI have a concern that the level of independence of this commission, as written down in this bill, is not sufficient. I hope that is something that a select committee will take some time to look at to ensure that it will be able to act independently. Obviously somebody has to appoint the commissioners, and that is likely to be the Government of the day. But I urge the Government of the day, which is putting this bill through, to ensure that a truly independent Productivity Commission is created. In order to do that it needs a broad mandate, a flexible mandate\u2014\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000377\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u00227b3cd7129aad421b89ba807ebc2452ba\u0022\u003EHon David Parker\u003C/span\u003E: Don Brash.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000378\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022255fe9a6d21f485cb6705c69813acf71\u0022\u003EGRANT ROBERTSON\u003C/span\u003E: It will not be Don Brash, at all, I say to Mr Parker. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000379\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EBut the Government also needs to make sure that the people who are picked as commissioners are people who are broadly acceptable to this Parliament. If the Productivity Commission is going to mean anything, it needs to be able to have the confidence of this Parliament that it is truly independent. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000380\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EAs my colleague Mr Parker said before, it is hard to look at this bill and not see the background of the ACT Party and deregulation as its centrepiece. The Productivity Commission must be far broader than that. If we look at the Australian Productivity Commission\u2019s instructions\u2014my colleague Lianne Dalziel mentioned one or two of these, but they bear repeating\u2014we see that, yes, the Productivity Commission is to improve the productivity and economic performance of the economy and reduce regulation. But then the instructions go on to talk about efficient and internationally competitive Australian industries, adjustment to structural change, and regional employment and development. That is a critical element that needs to be discussed more and more in New Zealand. Under Jim Anderton\u2019s watch, regional development was given a real focus under the fifth Labour Government, but that has slipped away with Gerry Brownlee\u2019s role as the Minister for Economic Development. Trade policies are included in the instructions, but here is the really interesting one: the last of the instructions ensures that Australian industry develops in ecologically sustainable ways. I echo the comments of David Clendon that we have to include that definition of sustainability, and we have to debate how New Zealand can go forward as a country that continues its clean, green reputation, and to actually make that real.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000381\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022f5d71749-ae91-4af7-b2bd-77260398912a\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u002291aea9d27121485cbfd08d4c5ad7e5ce\u0022\u003EHon David Parker\u003C/span\u003E: How do you do that when ACT doesn\u2019t believe in climate change?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000382\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003E\u003Cspan class=\u0022HpsBy\u0022 id=\u0022403d3b7546114a5bbe09b5c7b4b2091c\u0022\u003EGRANT ROBERTSON\u003C/span\u003E: Well, that is right. There is yet again another risk of this being dominated by the ACT Party\u2019s ideological agenda around regulation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000383\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EThis Productivity Commission needs a mandate that is both broader and more specifically outlined in law. We cannot afford to progress this bill through Parliament while leaving the definition of \u201Cproductivity\u201D and the functions as they are now. That is what Labour will focus on in the select committee. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000384\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EI conclude by saying that productivity in the State sector, which will be a major focus for the Productivity Commission, is not easily measured. It is pretty difficult to tell a nurse at Christchurch Hospital in the accident and emergency department to be more productive, or to tell a teacher in front of a classroom to be more productive. When we look at the State sector we have to ensure that we are realistic that the outcomes we are looking for as a country\u2014the health outcomes, the education outcomes\u2014cannot always be measured in hard-dollar terms. They cannot always be measured in ways that would suit the ACT Party. We need to have a Productivity Commission that supports and enhances New Zealanders\u2019 well-being. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000385\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226007dc96-f459-4cdd-9972-4fde2c994088\u0022\u003EOn this side of the House, we accept that a Productivity Commission is a good idea, and we admire the Australian model, whereby there is a broad set of areas that the Australian Productivity Commission can look into and that it is instructed to look into. We want an independent Productivity Commission that can continue to provide advice, and provide advice to Government\u2019s of all colours. But what we must not do is narrow down the agenda to that of deregulation and one party\u2019s ideology.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022 data-id=\u00226173fda58c924f86af609f3820174bd6\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000386\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226173fda58c924f86af609f3820174bd6\u0022\u003EAARON GILMORE (National):\u003C/span\u003E It behoves me as the last speaker on the first reading of the New Zealand Productivity Commission Bill to talk a bit about some of the comments from the Opposition members and, in particular, to touch on some of the comments from the last speaker, Grant Robertson. There seems to be some sort of fear and loathing from the Opposition members, probably from not properly reading the bill. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000387\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EThe first aspect of the bill that Labour is looking at is the Productivity Commission\u2019s function to \u201Chold inquiries into and report to the referring Ministers about productivity-related matters that are referred to it;\u201D. That function is far broader than what Australia has\u2014far broader. It means that Ministers can refer anything they want to the Productivity Commission to understand anything they want. Sure, a whole lot of other regulatory worries and concerns flow from it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000388\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EEqually, there has been some paranoia from the Greens about the ability of Ministers to control the commission. The bill allows freedom for Ministers to refer to the commission to undertake independent analysis. I think that is a good thing. When we look at it in relation to the Australian rules, we see that ours will allow a lot more freedom for the independent commission to do things. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000389\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EThere is also a fear about whether the commission will be resourced properly. This commission gets about $5 million a year. There are 29 people; that is nearly $200,000 a person. I think anyone out there who is paying taxes such as the butchers and the plumbers in my part of New Zealand in Christchurch would be thinking that is a lot of money to give to somebody to answer questions. That is $200,000 a year to 30-odd people to undertake some good analysis on what are the big questions and issues for New Zealand. I think that is probably more than enough resources to ask for from the hard-working taxpayers of New Zealand. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000390\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EEarlier on we talked a bit about what this bill is all about. This is not about New Zealand working harder\u2014we are the hardest-working country in the world; we work more hours than anywhere else\u2014it is about New Zealanders working smarter and getting more out of less in terms of getting more capital and, particularly, more brainpower. We heard some fear from David Parker, who talked about the reasons we made some changes to the tax system. It was to give more flexibility to employers to invest in things they see fit\u2014not necessarily machines, but minds. We cannot depreciate a mind, but through the lowering of the tax rate there is a greater incentive to invest in human resources rather than capital resources. We think it is a good thing to give the choices to employers to do things that are right. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000391\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EThe Productivity Commission in Australia has done some great work. I have read a number of its reports, particularly on the work it has done on energy and on population, and I think they are good pieces of analysis. I think if we can get the same level of analysis out of the work that might come out of this commission in New Zealand, then that will be a neat thing for New Zealand. We would be able to have some highly useful bits of analysis, particularly on social policy. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000392\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EI will segue a bit. I had the fortune to study at the University of Canterbury. It has just set up a new economics lab, which specialises in exactly this issue. It is very much looking forward to working with this Productivity Commission to answer some of the big social policy questions that exist in New Zealand. I think that what we have set up is a good step in the right direction towards working with all those entities and agencies that do this sort of work in New Zealand. They can be disparate, but this commission will bring them together to a position where they can undertake more detailed, in-depth analysis of those big issues that New Zealand is facing over the next 20 years or more. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000393\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022fbe3f87c-849c-4eee-84cc-119edeb1a681\u0022\u003EUnlike Mr Parker and my colleague Mr John Carter, I actually look forward to being here in 2025. I am young enough to be able to say that, whereas we have heard from the Opposition members that they do not even want to be here in 2025. If we can get this commission up and running to answer those big questions, it would be a great thing. I look forward to sitting here on the Government benches in 2025 looking at some of the great analysis the commission has done and putting it in place for a John Key - led Government for another 15 years. Thank you very much.\u003C/span\u003E\u003C/p\u003E\u003Ca id=\u00224330828765c14558b705eea8fa7a7d7e\u0022 name=\u0022division\u0022\u003E\u003C/a\u003E\u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EA party vote was called for on the question, That the New Zealand Productivity Commission Bill be now read a first time.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EAyes 113\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENew Zealand National 58; New Zealand Labour 43; ACT New Zealand 5; M\u0101ori Party 5; Progressive 1; United Future 1.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003ENoes 9\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EGreen Party 9.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp class=\u0022HpsDivision\u0022\u003E\u003Cspan class=\u0022HpsItem\u0022\u003EBill read a first time.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00226984d661-9f65-4ed6-b29c-3285b598582d\u0022 data-id=\u00226f3b194c31c44771a8bb9f387d1dca45\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000394\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226984d661-9f65-4ed6-b29c-3285b598582d\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00226f3b194c31c44771a8bb9f387d1dca45\u0022\u003EHon JOHN CARTER (Minister of Civil Defence)\u003C/span\u003E on behalf of the Minister of Finance: I move, That the Commerce Committee consider the New Zealand Productivity Commission Bill be referred to the Commerce Committee and that the committee report finally to the House on or before 22 November 2010, and that the committee have authority to meet at any time while the House is sitting (except during oral questions), and during any evening on a day on which there has been a sitting of the House, and on a Friday in a week in which there has been a sitting of the House, despite Standing Orders 187, and 190(1)(b) and (c). \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000395\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00226984d661-9f65-4ed6-b29c-3285b598582d\u0022\u003EMotion agreed to.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n    \u003Cdiv class=\u0022HpsHansard\u0022\u003E\n      \u003Cp\u003E\u003Cspan class=\u0022HpsProceedingHeading\u0022\u003EBills\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000396\u0022\u003E\u003Cspan class=\u0022HpsSubjectHeading\u0022 id=\u0022b43fb558c2a0415ba7b0936ead99e419\u0022\u003EInfrastructure Bill\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000397\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022fc01cc9fbc5d4a8f8cc9d8bad316f01f\u0022\u003EIn Committee\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000398\u0022\u003EDebate resumed from 21 July.\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000399\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u00228b800d7b7a974764a907188098734d20\u0022\u003EPart 3  Amendments relating to New Zealand Railways Corporation (continued)\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022 data-id=\u0022f72b4363d7344734ac0b8e4340686486\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000400\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022f72b4363d7344734ac0b8e4340686486\u0022\u003ECAROL BEAUMONT (Labour):\u003C/span\u003E I am speaking to Part 3 of the Infrastructure Bill, which amends the New Zealand Railways Corporation Act 1981. This amendment was relatively uncontroversial at the Transport and Industrial Relations Committee. In fact, we did not have much by way of submission on it. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000401\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EEssentially, Part 3 seeks to amend the Act by removing some of the statutory restrictions that negatively affect the running of New Zealand Railways Corporation business. Those changes include normalising the appointment and dismissal of directors, changing the number of directors who can call a meeting to a simple majority, establishing the power to appoint a deputy chairperson, and streamlining arrangements for changes to Railways Corporation capital. Part 3 also removes the requirement to annually provide the Minister with a programme of capital works, removes the limit on how much the Railways Corporation can expend in one year, and permits it to effect insurance cover for, or give an indemnity to, a director or employee. Those amendments are consistent with the equivalent provisions in the Crown Entities Act 2004. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000402\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EFor this side of the House, anything that streamlines the operation of the Railways Corporation and ensures that it is modern and well managed is important. As members will know, Labour strongly supports rail; we bought back rail, and we want to see more use be made of rail. Rail has many advantages for our country. It is environmentally sustainable in comparison with roading, it is safer, and it has provided really important service to primary producers. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000403\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EWhat is happening with the Railways Corporation is interesting. We are all aware that a former Prime Minister, Jim Bolger\u2014a good man\u2014was not reappointed to his role as chair. What was that about? He obviously\u2014I give him due respect for this\u2014believes in railways. He believes in the role of KiwiRail. Removing him has removed any impediment to the sale of KiwiRail in the second term of this National Government\u2014if it gets one. We are worried about the sale of a whole lot of assets, if the National Government is returned at the next election. I know that this will be a really important issue in the next election campaign. Across on this side of the House, we will do everything we can to expose what is a clear agenda to start privatising in the Government\u2019s second term, if the Government gets one. KiwiRail is right up there on the blocks. That is why, we believe, Jim Bolger was not reappointed. He believes that there is a future for KiwiRail as a publicly owned organisation. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000404\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EWhy would the Government want to remove the requirement to annually provide the Minister with a programme of capital works? What possible motivation could there be for that? Well, from our perspective, the Government is hiding the real state of the asset, and is preparing KiwiRail for sale. Labour is very apprehensive about the future of KiwiRail. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000405\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EIt is terribly worrying to us that this Government seems completely fixated on highways. We heard it again today in the House when Steven Joyce talked about highways. He was saying once again that there had to be so much investment in highways\u2014we were talking about the Auckland scenario\u2014because something like 85 percent of transport movements are, in fact, by road. Well, nobody would dispute that figure, but what gets me is that every time he is asked these questions, he trots that figure out as if it is a given, as if it is something we cannot control. [Interruption] As if it is something we cannot change\u2014exactly. We can do something about it, but the only way we can do something about it is by investing in public transport, investing in rail, and ensuring that it is a viable option for both the movement of freight and the movement of people. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000406\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EWe all know that the relative share of funding between public transport and roading has changed under this Government. It has changed from what was planned by the previous Government. That is another significant difference between the parties: on this side of the House we believe in investing in public transport and investing in robust infrastructure. Thank you.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000407\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EThe question was put that the amendments set out on Supplementary Order Paper 151 in the name of the Hon Bill English to Part 3 be agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000408\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EAmendments agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000409\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u00223facbb72-b3b0-464b-b24d-e6de0616f323\u0022\u003EPart 3 as amended agreed to.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000410\u0022\u003E\u003Cspan class=\u0022HpsSubproceedingHeading\u0022 id=\u0022fb4d4bc68af74462abe3d1f637d01a75\u0022\u003EPart 4  Amendments relating to affordable housing\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022 data-id=\u0022cde751401cab454599413d0ff76eb7c9\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000411\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u0022cde751401cab454599413d0ff76eb7c9\u0022\u003EMOANA MACKEY (Labour):\u003C/span\u003E I am happy to stand and speak on Part 4 of the Infrastructure Bill. Although Labour will be supporting the Infrastructure Bill, we will not be supporting Part 4. In fact, I would like to point out the anomaly of even having Part 4 in this legislation.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000412\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EPart 4 repeals the legislation relating to affordable housing. The question that needs to be answered is why this repeal was hidden away in the Infrastructure Bill. A number of people out there probably would have submitted on this particular part of the bill, if they had known to look in the Infrastructure Bill for the repeal of the legislation on affordable housing. It has become very clear that the Government did not want to make it obvious that once again it was backing down on an affordable housing issue, so it hid it away in Part 4 of the Infrastructure Bill.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000413\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EThere are a couple of amendments in my name on this part, which I will speak to soon. I will first address the issue of restrictive covenants. When the Affordable Housing: Enabling Territorial Authorities Act was passed under the previous Labour Government, one part of that legislation removed restrictive covenants where they were being used in order to stop social or affordable housing. When we went through that process the issue was raised with us that if we say one cannot have a restrictive covenant that stops social or affordable housing as its primary purpose, then all someone would have to do is to say that the restrictive covenant is for another reason, and the secondary purpose is that it stops social or affordable housing. The Local Government and Environment Committee back then decided to close this ginormous loophole. We did so by saying it was unlawful to have a restrictive covenant that had any purpose of prohibiting social or affordable housing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000414\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EFor reasons that I completely do not understand, the Minister for Infrastructure has decided that he will go back to saying that only if it is the principal purpose will it be prohibited. We asked for and received some advice from the officials at the Transport and Industrial Relations Committee on the repeal of this legislation, and why the decisions were made. They said: \u201CIndependent legal advice \u2026 indicates that there is a risk that the phrase \u2018one of its purposes\u2019 is too wide and likely to catch covenants that are entered into for legitimate purposes. For example, covenants to preserve rural character, open space \u2026 sunlight or views\u201D. Opponents could argue that \u201Can undeclared purpose of a covenant is to exclude social housing even though the wording of the covenant was quite different and\u201D\u2014apparently\u2014\u201Creasonable.\u201D\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000415\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EThe point was that people who believed that a restrictive covenant was being used to stop social or affordable housing would still have to prove it. It was still a very, very high hurdle to clear. But the Government changing it back to say that a covenant over land is void only if its principal purpose is to stop the provision of social housing on the land opens that loophole right up again. When we heard the original submissions on the Affordable Housing: Enabling Territorial Authorities Act, we heard one from the Human Rights Commission. It told us of a case in Nelson where a developer had said that the purpose of the restrictive covenant was related to amenity values\u2014the houses had to look a certain way\u2014when the reality was that the developer did not want to provide disabled access to those houses. That stopped people from the disability sector putting in community housing in that area. The developer said that the principal purpose was related to amenity values; the reality was that it was to stop housing with disabled access going in. Now this Government says that that is OK and it can happen. That is completely unreasonable and completely ridiculous, particularly given that we went through a full select committee process on this legislation under the previous Government.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000416\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EIn this current Parliament we went through a very quick select committee process on the Infrastructure Bill. Naturally, most of the submissions were on infrastructure and not on the repeal of affordable housing or the issue of restrictive covenants. That brings me to my next point, which is that the Government has also decided to take out affordable housing from the legislation. It is saying that although it thinks there should still be some kind of limit on restrictive covenants against social housing, it thinks it is OK that there are restrictive covenants against affordable housing. I am interested to hear from the Minister in the chair, Nathan Guy, as to why he thinks that restrictive covenants against affordable housing are OK. I certainly hope that he will take a call on that matter. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000417\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EI have an amendment in my name that restores section 277A to the way that it was under the previous Government. The legislation went through a full select committee process, where the issue of restrictive covenants was first and foremost in the submitters\u2019 minds. We asked for extra advice on that. It was not buried in legislation so that people did not know it was there. It seems to me that this amendment is an ad hoc decision made by the Government. I wonder who has got in the Government\u2019s ear and said that now it is really hard for them to block out social housing and affordable housing, so it would be nice if the Government got rid of those restrictions.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000418\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EIt was pointed out to us by submitters who came to the select committee\u2014submitters we contacted who had submitted last time\u2014that they were very, very concerned about the opening up of this particular section in the law. The Minister of Housing has made a big deal about this. He got up and said that he was great because he was keeping the provisions on restrictive covenants. Actually, I say to the Minister, he is not. He is opening them wide up to abuse, as was reiterated by a number of submitters at the select committee.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000419\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EI now move on to my second amendment, which is to remove Part 4 entirely. The reason for this is that I am happy to admit that Labour probably could have done better with the Affordable Housing: Enabling Territorial Authorities Act. If the Government were serious, we would be happy to support its referral back to the select committee to go through a process where we could address any of the issues that the Government had with it. We have not heard about why the Government wants to get rid of it.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000420\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EThis is kind of like the shared-equity affordable housing scheme, which the Government told the Housing New Zealand Corporation to stop promoting after the election. There was a 2-year pilot on an affordable housing programme, and for 20 out of the 24 months that pilot was running under the National Government, which did not tell anyone it existed. What an absolute waste of money! If the Government was not going to continue with it, it should have got rid of it. Why did it go through the pretence and the expense of running a programme that no one knew about? I suspect that affordable housing programmes are much more effective when people know they exist. That might be a stretch, but I am pretty sure that if people know a scheme exists, it will get a lot more uptake than if no one knows it exists.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000421\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EWe have the same kind of situation with this legislation. National decided it did not like it from the start, because it is not committed to affordable housing. It is not committed to addressing issues around affordable housing. National decided from the start that it did not like it. It has no interest in trying to improve it; it would like to get rid of it altogether. This is not a Government that takes affordable housing seriously. The Government thinks that the invisible hand of the free market will deliver homes to everyone, and if we give tax cuts to the richest people, eventually they will trickle down to those at the bottom, and with their $3 a week tax cut they will be able to purchase a house. Of course, the National Party\u2019s No. 1 policy on affordable housing at the last election was tax cuts. Well, I do not know how someone on the minimum wage will get into affordable housing on a $3 a week tax cut.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000422\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EI want to read something on Part 4 from the same paper that the select committee received from the Housing New Zealand Corporation. It concerns Government policy to address housing affordability. A number of submitters who came along were very critical, again, of the fact that the repeal of this legislation was buried in the Infrastructure Bill. The fact was that since the legislation had been passed, affordable housing pressures had become worse, not better. Probably more submitters would have liked to come along to have their say on affordable housing at that time, but of course they did not know about it. When people look for an affordable housing bill, they would not think to look at the Infrastructure Bill, which deals with a code for utility operators and access to transport corridors.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000423\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EThe paper that the select committee received said that the Government was getting rid of this legislation because the Government was doing so much on affordable housing. It had the Gateway Housing initiative, and details of the initiative were expected to be announced in October 2009. It is now July 2010, and the mythical Gateway Housing programme has yet to appear. It received no funding in this year\u2019s Budget, so it gets a cross. Then\u2014this is fantastic\u2014one of the Government\u2019s affordable housing initiatives is the sale of State houses. How is a programme that sells houses at market prices to people who cannot afford to buy them an affordable housing initiative?\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000424\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u002270dd644d-8bcf-40dc-998a-887d62d24a76\u0022\u003EThe other initiative is the Welcome Home Loan scheme, which was a Labour Government scheme. So the only tick National gets for the affordable housing initiatives of this Government is the Labour Government\u2019s Welcome Home Loan scheme. We have the Gateway Housing initiative, which does not exist, and the sale of State houses to tenants, which is not an affordable housing initiative, as we have seen, because the uptake has been about 20 people. Despite the Minister of Housing saying that he thought it would be hundreds, rather than thousands, it has turned out to be tens, rather than hundreds or thousands. The hopes and the dreams of a large number of people were raised, even though the Minister knew that they would never be able to get into those homes because that programme is not an affordable housing initiative.\u003C/span\u003E\u003C/p\u003E\u003Ca name=\u0022member\u0022 data-type=\u0022article\u0022 data-memberid=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022 data-id=\u00223f5ea93307a746038e50e12407b54b24\u0022\u003E\u003C/a\u003E\u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000425\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003E\u003Cspan class=\u0022HpsByToc\u0022 id=\u00223f5ea93307a746038e50e12407b54b24\u0022\u003EHon BILL ENGLISH (Minister for Infrastructure):\u003C/span\u003E It is a bit rich hearing Labour members go on about affordable housing. Under the previous Labour Government\u2019s policies, housing became less affordable than it has ever been. The reason that the Government is using Part 4 of the Infrastructure Bill to repeal the Affordable Housing: Enabling Territorial Authorities Act is that it was a nonsense. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000426\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe previous Labour Government ran policies that drove housing to the most expensive levels ever, relative to people\u2019s incomes. It then thought that it would fix that problem by passing a law telling local authorities they have to have affordable housing. This was during the tail end of Labour\u2019s time as the Government, and it summed up the vague, wishful, and incompetent policy-making it applied to the housing area. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000427\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe measure of the affordability of housing is the ratio between the average value of houses and the average wage. Under Labour\u2019s watch it almost doubled in some cases, and for the average person homeownership became unaffordable\u2014not affordable, but unaffordable. Labour needs to learn that saying that something should be affordable does not make it affordable. What would make it affordable? Sensible policies that stop driving up interest rates, tax policies that stop driving up house prices unnecessarily and pushing people into excessive borrowing, and resource management policies that prevent local government constraining the supply of land so much that it drives up the price of land considerably. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000428\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe interesting thing is that Labour knew most of this. The Labour Government committed considerable resources to housing affordability. It is just that the result of a year-long working party across the whole of Government was a silly provision that said we would achieve affordable housing by passing a law that said that local government had to have affordable housing. There were simple issues with the legislation, like what \u201Caffordable\u201D is. Why have legislation where the key term, \u201Caffordable\u201D, is not able to be defined or understood by anybody? For most normal people in the street, an affordable house is the house they would have liked to buy but could not quite borrow enough money for and did not have quite a big enough deposit to get. So it was an unworkable provision. It was a triumph of incompetent, wishful thinking over reality. It was a hope by the previous Government that it would be able to use aspirational legislation to fix what is fundamentally a microeconomic and policy problem. That is why we got rid of that provision. What has happened around housing affordability? It has started to improve. Surprise, surprise, with some more sensible policies that put a bit less pressure on interest rates it is starting to turn round. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000429\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe other day I saw a table of international rankings of affordability. We have one of the most expensive housing markets in the world when compared with wages\u2014one of the most expensive. That is the legacy that Labour left when it said it wanted there to be more affordable housing. It took us from the middle of the pack to being one of the most expensive housing markets in the world. I do not mean in the developed world or in the OECD; I mean in the whole world. \u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000430\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe mountain that New Zealanders have to climb to homeownership is now steeper and higher than it ever was, and that is why we got rid of that provision. It is time that we got rid of the muddled thinking about the affordability of housing, that we took seriously the New Zealand dream to own one\u2019s own home, and that we implemented concrete policies to bring that about. That is what we are doing.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000431\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EProgress reported.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000432\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EReport adopted.\u003C/span\u003E\u003C/p\u003E\n      \u003Cp id=\u0022id20100722e5cc62fc77734243a6912708280745eb000433\u0022\u003E\u003Cspan class=\u0022HpsNormal\u0022 id=\u0022bb158206-360b-4757-8d72-f7d0994e1fb3\u0022\u003EThe House adjourned at 5.55 p.m.\u003C/span\u003E\u003C/p\u003E\n    \u003C/div\u003E\n  \u003C/body\u003E\n\u003C/html\u003E"