Good morning everyone.
Thank you to members of the Western Institute of Technology council, and the Taratahi board for inviting me to be here in Taranaki with you today.
Both the Minister of Tertiary Education, Steven Joyce, and the Minister of Education, Anne Tolley send their best wishes.
As Minister of Agriculture it is a great pleasure to be part of the launch of this exciting joint venture.
You have developed a real opportunity for students here in the Taranaki region keen to embark on a career in agriculture.
The opportunities for school leavers in the agricultural industry have never been greater.
The primary sector is the very foundation of our economy. This makes it all the more important that we have an innovative approach to getting people involved in agricultural courses right through the education system.
It’s widely accepted that if we want the most from our primary industries, we must attract and retain suitably trained young New Zealanders on this career path.
It is critical we establish suitable agricultural training systems for students, not only here in Taranaki, but right across New Zealand.
The Government is keen to see initiatives like this that aim to build capacity and capability in our agricultural sector.
That’s why this month we announced nine Trades Academies are to open next year. These will provide trades and technology programmes for over 800 secondary school students.
Two of these are primary sector-focused and I congratulate Taratahi on its successful bid to deliver the Primary Industries Trades Academy.
I am also encouraged by Taratahi’s commitment to education as evidenced by other areas of training it has undertaken. These include the ‘Ag in Schools’ and rural leadership programmes, as well as the partnership with Lincoln University which enables you to offer the Lincoln Diploma in Agriculture.
I know your courses also put students on a path of agricultural training with many students continuing their studies through AgITO and Massey or Lincoln Universities.
The Taratahi Stratford campus was established six years ago with the intention of providing full time access to a wide range of agricultural training in Taranaki.
This is very appropriate as the ‘Naki’ is a renowned contributor to the primary sector of New Zealand.
It has a rich history of dairy farming and currently around 1900 Taranaki dairy farms produce 14 percent of New Zealand's total milk solids.
In addition to your agricultural base, Taranaki has oil and gas reserves, and the associated processing, distribution, and exporting also contribute greatly to your regional economy.
This new partnership between Taratahi and WITT will ensure graduates really contribute to the region’s continued economic growth.
The outlook for New Zealand is great because our strength is food production.
Over the next 40 years the world’s population is expected to increase from six billion to nine billion.
As a producer of premium products our target will be the upper and middle classes – the 50 million people in the future that can afford, and are prepared to pay more, for high quality food and beverage that is backed by integrity and reputation.
It is crucial we develop young people with the right skills, the right experience, and most importantly the right attitude to make the most of this fantastic opportunity.
So the future is your opportunity. Grab hold of it.
Thank you.
Good morning, thank you for inviting me to speak to you this morning.
Last year I congratulated you on the exceptional growth of your industry – an average of 24 percent a year for the past 20 years.
In July last year, you reached the celebrated one billion dollar export mark.
This was impressive considering the economic backdrop.
But I know your industry faces significant challenges.
Growing pains are clearly evident. Constrained growth is forecast over the next couple of years while there is a period of rebalancing.
I note that the theme for your conference is "What Comes Next?"
In your annual report, your chairman Stuart Smith refers to the importance of getting the balance right.
He is talking about balancing supply and demand as a precondition to growing value and ensuring profit.
In government, we are also concerned with rebalancing.
As Minister of Agriculture I’ve identified three major rebalancing areas that are crucial to moving the primary sector forward.
The first is around the economy. The second is around trade destinations. And the third is the positioning of all of New Zealand’s primary products.
Let’s start with the economy – first and foremost we need to lift our economic performance.
The reason this is so important in my area is because our export sector, the way we earn our way in the world, actually went into recession in late 2004. A full five years before the global financial crisis.
There are two reasons this was masked:
• The first was our nation’s continued obsession with property investment.
• The second reason was the huge increase in government expenditure under Labour.
To correct this balance, the Prime Minister has charged all Ministers with economic portfolios to fire up our sectors. He wants to see the trend reversed and the growth we so desperately need, delivered.
The primary sector, which accounts for 67 percent of the export sector can, and must, perform a lot better.
The Government has a big role in encouraging growth. That is why recent changes to the tax system, our innovation programme, including the Primary Growth Partnership and our infrastructure programme, including sorting out our water resource, really matter.
The second rebalancing area that needs focus is where we trade.
In 1970, 85 percent of all primary exports went to the then three richest countries in the world - United Kingdom, Europe, and Japan.
Today, less than 12 percent of our total exports go to these three regions. It’s also worth noting that they are no longer the powerhouses of the world, but the economies with the greatest challenges.
New Zealand now exports to 233 countries. But more importantly, we have repositioned our export industries to the next generation of powerhouse economies.
China is now our second largest trading partner.
With our Free Trade Agreement, tariffs for New Zealand wine will be phased to zero on 1 January 2012. Our exporters will have a significant advantage over international competitors who will continue to pay tariffs between 14 and 20 percent.
When I was in China in March I visited a small shop in Harbin, Northern China, which sold only New Zealand wine. In the first 12 months it imported $200,000 worth of our wine, in the second year it budgeted to import $2 million. This is staggering growth.
In April this year a joint delegation of New Zealand officials and your industry spent a week in China.
The key objective of the visit was to expand New Zealand wine sales into China.
The challenge we have is to make sure the Chinese middle class gets a taste for New Zealand wine. Because that middle class is huge.
Of China’s 1.3 billion people, at least 250 million earn the same per capita income as the average New Zealander, so they can afford our premium products.
The final rebalancing area, and one that some producers still need to get to grips with, is we are no longer a low cost producer.
We won’t, and shouldn’t, attempt to compete against other countries on price. In your game, let the Aussies have the budget market.
We must play to our strengths, which is producing a premium product backed by reputation.
I think this is something the New Zealand wine industry understands well.
I want to now address the rebalancing you face in the wine industry – eroding profits for vineyard and winery owners.
The Ministry of Agriculture and Forestry recently completed monitoring of vineyards in Marlborough and Hawke’s Bay.
It confirmed that last season was the most financially challenging since its detailed monitoring began in 2004.
The impacts of grape oversupply and the world recession are certainly hitting hard.
I am aware of a spike in winery receiverships in Hawke’s Bay, Marlborough and Central Otago.
There will likely continue to be rationalisation in the industry in the short term.
As an industry, you know this. And I must commend you on attempting to manage these challenges very carefully.
I admire the cohesive and united way your industry works.
The result of the levy vote earlier this week is an example of your commitment to the big picture and the future of New Zealand wine.
Unity of purpose is one of the driving forces behind your sector's success in the global marketplace.
Another area in which we need to find the right balance – and this is an important one for both you and me – is biosecurity.
Consider this amazing statistic – 175,000 items a day come across our borders.
As more people and goods enter our country, the potential for harmful pests and diseases to arrive increases.
A huge amount of money, three quarters of a billion dollars, is spent annually on biosecurity in New Zealand.
Government is reviewing the way biosecurity risks are managed to balance shared responsibilities and benefits.
This is not about spending less on biosecurity, but about more effective border control.
We believe industry/government partnerships will mean we can all appreciate the risks and the potential costs of any incursions.
We must continue to find new ways to manage biosecurity risks more efficiently and there is no doubt teamwork is critical to success.
Earlier I mentioned the importance of innovation in reaching this Government’s growth goal.
It is so critical that we have dedicated big dollars to fostering innovation across the primary sector.
An exciting development is the Primary Growth Partnership.
To date, there has been $164 million in government funding committed to five industry projects, which when combined with industry contributions, total around $366 million spent on innovation.
This is very significant money, in fact the biggest primary sector innovation spend in decades.
I note there has been some interest shown from the horticulture sector, although few formal applications.
I do encourage the wine industry to take advantage of the funds available and come up with ideas for a partnership that will contribute to achieving your goal of $2 billion by 2019.
I want to finish on the subject of water.
There is no other lever with as much potential for growth in the primary sector than water.
It is our liquid gold.
As you’ve no doubt heard – wine is for drinking, water is for fighting over. Certainly that is the recent history.
In New Zealand we’ve always had plenty of water and perhaps this is the reason it hasn’t been managed well. But as demand increases and allocation reaches its limits, this Government is looking at better management of our water resources.
This is all about efficient distribution, better allocation, and most importantly water storage.
An example that brings the storage issue to mind is in my home patch of Canterbury where 96 percent of fresh water flows straight to sea.
Getting water management right will stimulate economic benefit for generations, and it is a most obvious creator of wealth, growth and productivity in the primary sector.
To conclude, I am aware of the financial challenges the wine industry faces.
But I am confident your long term future is sound.
Over the next 40 years the world’s population is expected to increase from six billion to nine billion.
As a producer of premium products our target will be the upper and middle classes - the 50 million people in the future that can afford, and are prepared to pay more, for high quality food and beverage that is backed by integrity and reputation.
Like your chairman has said, reputation is your industry’s greatest asset. Every bottle that bears the words "New Zealand wine" must enhance that reputation.
The future is your opportunity. Grab hold of it and let’s all make your excellent industry even better.
Cheers.
Good afternoon everyone.
The kiwifruit industry is to be congratulated. You’re part of an industry that other primary sectors can look to for establishing a benchmark for solid growth.
Since taking up the role of Agriculture Minister in November 2008, I have visited Zespri head office in Tauranga twice. I have also had the pleasure of touring your European distribution centre in Belgium, and a production centre in Italy.
My impression is that Zespri runs an exciting and innovative operation, both here in New Zealand and internationally.
When I talk to your board and senior management it takes me to those immortal words of John F Kennedy – and I paraphrase – you ask not what New Zealand can do for you, but what you can do for New Zealand.
Zespri has succeeded in maintaining a high and steady price for New Zealand kiwifruit over the past 10 years. And you have attained a premium over your competitors.
The value generated by sales supports your considerable investment in branded marketing and research and development.
In fact the Zespri brand has been so successful, your overseas competitors have piggybacked on your efforts in international markets. As they say, imitation is the highest form of flattery.
Zespri can proudly claim it invests more in innovation as a percentage of revenue than any other New Zealand primary industry.
This in turn drives growth and confirms Zespri’s position as a world leader.
But Zespri’s growth has not been simply the result of using more resources. It has been achieved through driving productivity gains.
A statistic that deserves highlighting is that growers are producing more fruit and making more money for New Zealand from a land area approximately 70 percent of what it was 20 years ago.
This is a clear demonstration of an industry singularly focused on productivity and growing its future.
Like you, this Government is also focused on growth.
We are now 21 months into the job. We are technically out of recession but as my colleague Finance Minister Bill English emphasised just last week, recovery will be patchy at times.
When we came into office, the National-led Government inherited an unenviable situation.
It is not well known that the tradeable sector of the New Zealand economy – our export sector – actually went into recession in late 2004, a full five years before the global financial crisis hit.
There are two reasons this was masked:
• The first was our nation’s continued obsession with property.
• The second reason was the huge increase in government expenditure under Labour.
New Zealand's growth between 2005 and 2008 was sluggish and when the world financial crisis really kicked in, we were already in recession.
Now we are out of the worst of it, the Government’s focus is firmly on accelerating economic growth.
To achieve this goal, every sector has a responsibility to lift its game.
All Ministers with economic portfolios are charged with firing up our sectors to deliver greater prosperity, security, and opportunity for all New Zealanders.
There are no exceptions - horticulture and the kiwifruit industry have a big role in turning our economy around.
Your efforts over the past 10 years have led to the significant increase in kiwifruit’s export volumes and revenue – from $464 million to more than $1 billion today.
Compare your achievements with the challenges I face with the strong wool industry. Over the past decade, its export returns have almost halved.
They could do with taking a page from your marketing book. As indeed, the fine wool industry appears to have done.
Zespri’s promise to triple export earnings by 2025, to at least $3 billion is just the sort of ambitious goal this Government is calling on all exporters to strive for.
Most New Zealanders know it’s time to get this country moving again. And to ensure momentum, the Government has an important role to play.
So what can the Government do for you, so you can do more for New Zealand?
With regard to primary sector growth, we have identified six key drivers to make ‘doing business’ easier.
Firstly you will all be aware of the major changes we made to the tax system as part of Budget 2010.
At a time when many other countries are being forced to consider income tax increases, we have delivered across the board personal tax cuts.
Our reformed tax system will see three quarters of all New Zealand tax payers paying a top rate of just 17.5 cents in the dollar.
There is, of course, a downside to this figure. The threshold of $48,000 is a real indication we are not the high income society we like to think we are.
Our company tax rate will fall to 28 cents in the dollar – lower than Australia. This will ensure we remain competitive, attract foreign investors and encourage exports.
The second driver is better business innovation.
Innovation is about creating long-term benefits. Government and the kiwifruit industry both know this.
We can’t continue to rely on research and development of previous decades. That’s why last year we announced the Primary Growth Partnership innovation fund.
On Tuesday, I announced two major projects that have qualified for $144 million from the Government fund.
When coupled with the dollar contribution by industries, the total now committed to primary sector innovation over the past two years is $366 million.
This is the biggest investment in primary sector innovation in decades. It shows how focused this Government is on boosting economic growth after years of neglect in primary sector investment by central government.
The good news is Zespri is a co-investor in two of the current PGP projects. And I understand it is also looking seriously at other programmes that may be eligible for PGP funding.
The third driver is our ambitious trade agenda. Free trade agreements will deliver more for New Zealand export businesses than anything else we do, short of completing the Doha Round.
Our Free Trade Agreement with China is already paying dividends. In addition we have signed agreements with Malaysia and Hong Kong, and we are in talks with India, the Gulf States, Trans-Pacific Partnership countries, Korea and Russia.
The fourth driver is about cutting red tape and regulation. We’ve already simplified the Resource Management Act to reduce costs and promote growth, and further RMA reform is underway in areas that cover water and infrastructure.
Two pieces of legislation that will make a big difference to employers were put before Parliament this week.
The first is the extension of the 90-day trial period for new employees.
Despite the unions’ overreaction and bluster, this trial has worked. It has taken the risk out of businesses taking on new staff, and it gives workers the chance to prove themselves.
The voluntary trial period will now cover all employers, not just those with fewer than 20 staff.
The second piece of legislation covers changes to simplify the Holidays Act. The changes are designed to be fair, pragmatic and help to give New Zealanders more opportunities and flexibility.
The fifth driver is infrastructure. Before the election we promised to unclog the economy’s arteries, to increase funding, and get the best from our limited resources with smarter planning.
First-class infrastructure is no different to any other investment. It is an important enabler of higher productivity and growth.
The first part of the plan is underway, construction of Roads of National Significance have been prioritised.
Zespri’s home base, Tauranga, and one of our fastest growing cities, will see real benefits in this area.
Soon you’ll see the rollout of fibre in our $1.5 billion ultra-fast broadband plan.
And there has been a substantial rise in spending on the National Grid to ensure businesses and consumers have a secure electricity supply.
In the infrastructure area I am also driving hard to guarantee better management of water resources.
This is all about more efficient distribution, better allocation, and most importantly water storage.
An example that brings the storage issue to the forefront is in my home patch of Canterbury where 96 percent of fresh water flows straight to sea where it becomes contaminated.
Getting water management right will stimulate economic benefits for generations and is a most obvious creator of wealth, growth and productivity in the primary sector.
The sixth and final driver - the one that ensures a healthy and successful primary industry - is biosecurity.
If there was a major incursion it would seriously jeopardise this country’s growth plan.
Trade and travel volumes are increasing, presenting new and diverse types of biosecurity risk along the way. Consider this amazing statistic - 175,000 items a day come across our borders.
As more people and goods enter, the potential for harmful pests and diseases to arrive increases.
A huge amount of money, three quarters of a billion dollars, is spent annually on biosecurity in New Zealand. Activities are undertaken by central government, regional councils, industry and private landowners.
This Government is reviewing the way biosecurity risks are managed to reflect shared responsibilities and benefits. These industry/government partnerships are about working more closely with industry so that we all appreciate the risks and the potential costs of any incursions.
We must continue to find new ways to manage biosecurity risks more efficiently, but there is no doubt teamwork between industry and Government is critical to success.
To conclude, we live in a great country but I think it can be a greater country. To retain talented New Zealanders, it must be.
I want to think that New Zealanders are seeing us as a government of growth and action.
We have acted quickly to fulfil election promises and sort out a range of issues that frustrated so many of you.
Yes, there are still challenges ahead, and more to be achieved. But we have a firm goal of economic growth, and an action plan.
We all have a responsibility to get this country moving, for the benefit of all New Zealanders.
Again, thank you for playing your part in this challenge.
Two major investment partnerships announced today will take primary sector innovation to a whole new level and deliver directly on the Government’s economic growth plan, says Agriculture Minister David Carter.
The Government’s Primary Growth Partnership (PGP) is to fund nearly half of $321 million in research and innovation projects proposed by the dairy and red meat industries, our two largest primary sector exporters.
The two partnerships involve a DairyNZ/Fonterra-led programme ($170 million) and a Silver Fern Farms, PGG Wrightson and Landcorp Farming programme ($151 million).
"The Government’s investment of $144 million in these programmes is what the PGP is about – a commitment to significantly boost economic growth through innovation," says Mr Carter.
"This is the biggest investment by Government in primary sector innovation in decades.
"The PGP aims to transfer great ideas into research, development and ultimately products, jobs and growth. It is exactly the business innovation that the Government has identified as one of the six drivers of economic growth.
"All New Zealanders stand to benefit from the partnerships announced today because the dairy and red meat industries are pivotal to the successful performance of our economy.
Mr Carter congratulated the industry groups on meeting the robust approval process and said the economic spin-offs for the country will be significant.
"This Government is making a serious investment in primary sector innovation because we recognise the crucial role it has in accelerating growth and delivering a brighter future for all New Zealanders," Mr Carter says.
For details of projects: http://www.maf.govt.nz/pgp/industry-initiatives.htm
Thank you for the invitation to speak to you this evening.
I’ve been asked to address the question of what is holding up planting on steep erosion-prone country. I’ve also been asked to comment on the state of domestic log processing.
I’ll attempt to answer these questions. But first I’d like to make some general comments about this Government’s agenda for growth and the role the forestry sector can play in this.
Finally, I want to touch on some of the actions we are taking to encourage growth for your industry.
To begin, this National-led Government is now well past the half-way mark of the parliamentry term. Our focus is firmly on growing the economy.
To acheive our goal, our export sector must perform better.
It is not well known that our tradeable sector went into recession in late 2004, five years before the global financial crisis.
This recession was masked by two things. The first, New Zealand’s continued obsession with property and capital gain. The second, a massive increase in Government spending.
As we have found, this was a totally unsustainable situation.
With this Government’s focus on growth we are looking to every sector to improve its performance. That means forestry too.
Having said that, let’s not underestimate the massive and ongoing contribution the forestry industry makes to the New Zealand economy.
Many New Zealanders do not appreciate this fact. But you remain our third largest export earner.
My impression is that there is currently a higher level of confidence within your industry than at anytime in recent years and this is for two main reasons:
• increased demand and prices from Asia and particularly by China due to the recently signed Free Trade Agreement.
• and renewed confidence now the next phase of the Emissions Trading Scheme has passed.
It is now up to your industry to take full advantage of this confidence.
Government is doing its bit to create an environment for increased economic performance.
The Primary Growth Partnership provides an example of how we are constructively supporting the forestry sector without creating an industry overly-dependant on central government.
Through this fund the Government has allocated $190m over four years to match dollar-for-dollar investments made by participating industries.
I commend forestry for taking up this challenge through the Forest Owners Association-led business plan.
Your sector had the first project approved.
The idea to develop a steep country harvesting system will hopefully decrease harvesting costs, increase safety, and in time encourage more planting in steep country.
While we are on the subject of innovation I want to mention a project run out of Canterbury University. They are developing systems for multi-storey buildings using laminated veneer lumber.
I’ve visited the seismic lab at the University, where a two-thirds scale building has been constructed using columns and beams made from laminated veneer lumber. Vigorous testing for seismic stability and strength is now underway.
This work is technically interesting and also very valuable for the future of commercial design and construction in New Zealand.
The research is being carried out under the auspices of the Structural Timber Innovation Company (or STIC), a collective of major participants in the Australian and New Zealand timber industries and leading research organisations.
The Government is the largest investor in this venture, through the Foundation for Research, Science and Technology, which provides dollar-for-dollar funding with industry.
Along with other initiatives, it should lead to a much wider use of wood in multi-storey construction. Professor Andy Buchanan and his team are to be congratulated on their work.
Now back to encouraging new planting, there are a range of government programmes to encourage afforestation.
Putting the value of carbon into the equation greatly improves the profitability of trees.
Now that we have a credible Emissions Trading Scheme established we are starting to see a significant increase in interest from rural landowners to plant trees.
A number of farmers with marginal hill country seem to be changing their views of the ETS, given the relative profitability of trees and sheep on such land and they are actively looking to convert to carbon forestry.
Only this week there was a story in the Manawatu Evening Standard quoting a local farmer who said many hill country farmer stood to gain from planting trees on their roughest land and that he had made an average of $500 a hectare on formerly unproductive land.
We still have the Afforestation Grant Scheme, although it has been scaled down as the ETS gets traction. In addition, the Permanent Forest Sink Initiative, Sustainable Land Management Hill Country Erosion Fund, and the East Coast Forestry Project still receive Government support.
So the Government is playing its role by providing a range of incentive schemes for increasing new forest planting.
The question has been asked: Why isn’t New Zealand doing more about domestic log processing?
Often New Zealand is unfavourably compared to Chile – a country that has seen a significant reduction in raw log exports and an increase in processed wood products.
There is some school of thought that we don’t have the scale in New Zealand that Chile has. But I don’t buy that argument - specialized smaller, modern mills can be economic.
But modernising requires significant capital investment and therefore probably requires foreign investment.
The Government is moving on a range of fronts to provide an investment-friendly climate.
Our economic growth programme includes investment in infrastructure, removing red tape and improving regulation, supporting innovation, improving access to research and development, improving the tax system and developing access to capital and world markets.
Our focus on infrastructure provides the foundation for increased production.
We have streamlined the Resource Management Act to improve the regulatory environment.
We have adjusted our research systems to help firms connect with our best scientists.
We have reformed our tax system to encourage growth and boost productivity.
We are working towards free trade agreements with India, Korea, the Gulf States and the United States.
But while the Government can help build the foundations for future growth, we can’t make the individual investment decisions that will drive productivity and new opportunities.
It is people within your industry that are in the best position to maximise the market and build strong economic structures on those foundations.
Before closing, I want to touch on a couple of other government initiatives that should benefit your industry, two of which came into force over the past few months.
The first was the change in rules around heavy trucks to encourage greater productivity in road freight. This will provide the opportunity for heavier loads and increased truck and log lengths.
I’m told the log transport industry has been very active in promoting the rule and maintaining the gains in safety standards it has already achieved.
Log truck operators here in Rotorua have been amongst the first to apply for, and get, permits for heavier weights.
The second is the forestry allocation plan for forest landowners that flows out of the Emissions Trading Scheme.
The regulations were signed in July. I won’t go into its details but I do want to remind you that you need to act to get your free allocations, and there are deadlines.
The last thing I want to mention is the National Environmental Standard for Forestry. This standard aims to take away the inconsistencies of regional boundaries. Although still in the early stages there is a discussion document due out for public consultation shortly.
To finish let’s go back to my opening comments. This Government is fully aware the good health of our economy is dependent on primary production.
One of the real advantages of our primary sector is its diversity –collectively it includes agriculture, horticulture, aquaculture, viticulture and of course forestry.
We must never underestimate the significance of forestry in that mix.
As our third largest export earner your sector will continue to play a vital role in lifting the economic performance of this country and with it the living standards of all New Zealanders.
Thank you.
Agriculture Minister David Carter has welcomed Labour’s flip-flop on high country rentals which now sees it supporting the Government’s new policy of basing rentals on earning capacity.
"This is a major backdown by Labour considering its implementation in 2007 of a rent formula that ignored earning capacity and charged rent for views and amenity values," says Mr Carter.
"Labour has finally realised that simply giving a sheep a lakeside view doesn’t give it the ability to grow more wool and produce more income.
"Damien O’Connor should acknowledge it was his government that caused stress and frustration for high country farmers by attempting to charge them exorbitant rents, in some cases higher than the gross income of the farm.
"Labour’s ‘greedy landlord’ approach ignored the ability of these farmers to sustainably manage the land.
"National has now sorted out Labour’s mess and is allowing farmers to get on with the job of farming and looking after the high country rather than fighting bureaucracy," says Mr Carter.
Good morning ladies and gentlemen.
Thank you Andrew Fenton for your introduction.
It’s a pleasure to be here today to open Horticulture New Zealand’s annual conference.
You have created a new word to sum up horticulture and attitude - Hortitude.
Well, I want to talk to you today about another word vitally important to New Zealand’s future. That word is - culture.
The culture I’m talking about is not the Haka, or a Film Festival, or the New Zealand Symphony Orchestra.
The culture I’m talking about is what New Zealand’s future really depends on - agri-culture, viti-culture, aqua-culture, and importantly, horti-culture.
A year ago you launched your strategy to become a $10 billion industry within the decade.
I’m pleased that the meat industry has followed Horticulture New Zealand’s lead in appointing exactly the same guy to develop its strategy as you did.
You are to be congratulated for leading this charge and doing the work.
And you seem to be on track, over the past year, the kiwifruit and wine industries have each achieved in their own right, the $1 billion export mark.
Like your strategy for growth, this Government is also seriously committed to that goal.
We know to deliver greater prosperity, security and opportunity for all New Zealanders, we need to increase productivity and exports.
In the early 1950s, we were the second wealthiest nation in the world.
When we stack ourselves up against other developed nations now, New Zealand has steadily declined in relative wealth over the past 60 years.
To achieve our goal and to catch up with our trading partners, we need a step change in our overall economic performance.
The primary sector is crucial to getting us over the line.
What most people don’t realise is the export sector went into recession in 2004 – a full five years before the global financial crisis.
The reason we didn’t see it was because of two factors.
The first one was our nation’s continued obsession with property.
The second was the huge increase in government expenditure under Labour.
Our first year in parliamentary office was about rebalancing this skew.
We are now out of recession and our firm focus has turned to accelerating economic growth.
Every sector has a responsibility to lift its game.
There are no exceptions - horticulture has a big role in turning our economy around.
You make a huge contribution to the New Zealand economy - our fourth largest exporter earner.
But to grow further, we all need to do even better.
The Government is doing its bit to help. Our rolling maul of initiatives to kick start growth includes a revamped tax system, encouraging innovation reforming regulations; and boosting infrastructure.
I want to go through this list in more detail.
First, the tax system.
The aim behind our tax reform is to create incentives for people to work hard, improve their skills and get ahead.
Our reformed tax system sees three quarters of all New Zealanders now paying a top tax rate of just 17.5 cents in the dollar.
There is, of course, a downside to this figure. The threshold of $48,000 is a real indication that we are not the high income society we like to think we are.
Secondly, to kick start growth we are boosting innovation.
This Government knows we can’t continue to rely on research and development of previous decades. That’s why we committed to match primary industries dollar-for-dollar as part of the Primary Growth Partnership innovation fund.
There’s $2 million set aside to benefit the horticulture sector for each of the first two years.
We’re approaching the end of the first year of the partnership and while there has been interest from your sector, there have been no formal applications.
I challenge you to put your heads together during this conference to come up with ideas suitable for a bid that will contribute to the growth goal for your industry.
Thirdly, to lift our game further, we are reforming regulations.
Draconian regulations have been strangling economic growth. That is why one of the first things we did on coming into office was to streamline the Resource Management Act. And there is still more work to do.
Another area that directly impacts on your profitability, and is a crucial element to the success of your business, is the people you employ.
We are making significant changes to employment law.
One important part of our employment law package is the extension of the 90-day trial period for new employees.
Changes to the Holidays Act are aimed at reducing direct costs and compliance costs so businesses can invest their time and money in growing their business and creating more jobs. We have also targeted employees who ‘pull sickies’ on a regular basis.
Lastly, this Government is boosting infrastructure to encourage economic growth.
Infrastructure and, in particular, our water resource is critical to accomplishing our goal.
I don’t need to tell horticulturalists that you need water to grow things.
Within the primary sector, water is probably our biggest economic opportunity.
It is New Zealand’s liquid gold.
We have plenty of it, but not always in the right place and at the right time.
Demand is outstripping supply. There are real concerns about water quality and economic opportunities are being constrained.
Our first job has been to clear regulatory road blocks. One of these led to passing the Environment Canterbury legislation. This was the first step to improving Canterbury's water management.
It was a big call to replace elected councillors with appointed commissioners, but this circuit breaker was needed to ensure Canterbury water is better managed.
So, that’s some of the things Government is doing. Now, I want to talk a bit about industry positioning and its future.
New Zealand’s future lies in supplying customers willing to pay premium prices for top quality produce. New Zealand is no longer a low cost producer – your strategy recognises this.
Our international customers are discerning.
They want to know products are safe, and have been produced ethically and sustainably.
We trade on our clean, green image. And that is why, of all my portfolios, biosecurity is the most critical.
I know that in the regular meetings I have with your board, biosecurity is one of your industry’s greatest concerns too.
We walk a tightrope every day getting the right balance between protecting New Zealand from harmful pests and diseases, while also encouraging and facilitating travel and trade that is essential to our economy.
Dwell on this statistic: every day 175,000 items come across our borders.
We therefore need to be constantly reviewing the way we do things at the border.
We will get better results at the border if we work closely with the industries that know the risks. That way we can prioritise what we must tackle if and when it arrives.
Government/industry agreements are something that we are now looking at with industry.
I want to congratulate Horticulture New Zealand because you have brought a practical and commonsense approach to this work and I’m pleased we’ve now signed a memorandum of understanding.
As we develop this new approach, I want to assure you this won’t lead to less government spending on biosecurity. Instead it’s about getting better results at the border.
My final comment is around the huge amount of work Government is doing with trade and the development of free trade agreements.
When you look at your export markets on a map, you guys touch every corner of the globe - a remarkable complement to your industry.
Talking about free trade agreements there wouldn’t be a New Zealand business that hasn’t seen some benefit from the China FTA.
We are now working hard to develop one with Korea which will deliver significant value to your industry.
We’re also working on agreements with Russia, the Gulf States, India, and the Trans-Pacific Partnership, which includes the United States.
To conclude I’m now 20 months into my job as your Minister.
I deal with many industry groups and I want to thank Horticulture New Zealand for bringing commonsense and co-operation to the issues we collectively face.
Thank you for inviting me to speak to you and I look forward to continuing our excellent working relationship into the future.
A new system for setting rents for South Island high country pastoral leases administered by the Crown has been approved by Cabinet, Agriculture Minister David Carter and Land Information Minister Maurice Williamson announced today.
The new system implements the Government’s strategic direction for Crown pastoral land, announced last year, which specified that rent should be charged based on the earning capacity of a property.
Mr Williamson says the new system for setting rents takes into account a number of factors, including the productive capacity of the lease and pastoral economic conditions.
"The way rents are currently calculated is complicated and costly and often produces disputes over both the process used and the result," he says.
Agriculture Minister David Carter says the new system will provide greater certainty to farmers.
"It is simpler to administer, more transparent and provides a fair rent. It will allow farmers to get on with the job of farming and looking after the high country rather than fighting bureaucracy."
Officials have worked closely with the High Country Accord, a representative group for Crown pastoral lessees, during the development of the new policy.
There are 231 pastoral leases, mainly in Canterbury and Central Otago, which represent around 1.6 million hectares of pastoral land.
Officials will begin drafting legislation to implement the policy, and the Government hopes to introduce a Bill into the House later this year.
The public will have the chance to make submissions on the Bill during the Select Committee phase of the passage of legislation.
Further information on the proposed rent-setting process, including Cabinet papers and questions and answers, is available on the Land Information New Zealand website: http://www.linz.govt.nz
The Government is to extend the pro-competitive conditions placed on dairy co-operative Fonterra and has committed to reviewing the eligibility criteria for access to regulated raw milk.
Agriculture Minister David Carter says the conditions contained in the Dairy Industry Restructuring Act 2001 (DIRA) give farmers choice about who they supply milk to, and provide an incentive to price milk competitively.
"When Fonterra was formed, it was placed in a privileged position as the dominant market player. This required rules to ensure a competitive and innovative dairy industry," says Mr Carter.
The Act contains triggers, or sunset clauses, that could have been met some time next year.
"At this point, the Government is not confident there would be sufficient competition in the dairy industry to protect the long-term interests of farmers and consumers," says Mr Carter.
"The Government has agreed to set new triggers at a Fonterra market share of 80% in the North Island, and in the South Island, excluding the area covered by the Westland Regional Council. At that time, a full review will look at the ongoing need for the DIRA.
"This is not about reducing Fonterra’s market share. It is about delivering fair and open competition and innovation to the New Zealand dairy sector.
"Concerns were also raised in submissions to the recent review of the DIRA about the eligibility criteria for access by independent processors to regulated raw milk. The Government has acknowledged these concerns, and will consider them in a review of the criteria.
"Fonterra is proposing substantive changes to its capital structure, including a proposal to allow its shares to be traded amongst its farmers (TAF). This will require further significant changes to the DIRA to ensure ongoing competition in the sector.
"This extension to the Act provided regulatory certainty while the Government awaits the capital structure proposals.
"The Government anticipates receiving a detailed proposal from Fonterra in the near future to allow time for full public consultation to take place and for Fonterra to meet its goal of having TAF in place by late next year," says Mr Carter.
Click here for background on DIRA.
Good evening ladies and gentlemen.
Thank you Nick Pyke for your introduction, I am delighted to be here in Ashburton for the Foundation for Arable Research conference.
Your conference theme strikes a real chord for me - "Sowing the Seed for a Brighter Future". This fits well with the Government's goal.
We want to grow the economy in order to deliver greater prosperity, security and opportunity for all New Zealanders.
We need to reclaim our position as one of the leading economies in the developed world.
To reach our goal and to catch up with our trading partners, we need a step change in our overall economic performance.
This means every sector of our economy.
The primary sector is crucial to getting us over the line.
What most people don't realise is that the export sector went into recession in 2004 - a full five years before the global financial crisis. We just didn't see it.
This National-led Government's first year in office was about rebalancing the skew. We are now out of recession and back on track - our focus has turned to accelerating economic growth.
Every sector has a responsibility to lift its game. There are no exceptions - the arable sector has an important role in turning our economy around.
And the Government is doing its bit.
Our rolling maul of initiatives to kick start growth includes revamping the tax system, encouraging innovation, reforming regulations and boosting infrastructure.
I want to briefly touch on these.
Our reformed tax system sees three quarters of all New Zealanders now paying a top tax rate of just 17.5 cents in the dollar.
There is, of course, a downside to this figure. The threshold of $48,000 is a real indication we are not the high income society we like to think we are.
The aim behind our tax reform is to create incentives for people to work hard, improve their skills and get ahead.
Initiative two is about encouraging innovation.
This Government knows we can't rely on research and development of previous decades. That is why we committed to match primary industries dollar-for-dollar as part of the Primary Growth Partnership innovation fund.
Thank you, guys for being really enthusiastic early joiners of the PGP with your FAR project.
You were one of the first to put in a robust application, and work through what is clearly a very rigorous process.
Your project is exactly what this fund is about - those seriously innovative ideas.
Planting special grasses that don't attract birds around airports sounds pretty good to me - and I can say that as someone who uses airports a lot!
Initiative three is about draconian regulations which strangle economic growth.
One of the first things this Government did was to streamline the Resource Management Act. Legislation was introduced to Parliament within our first 100 days and came into law on 1 October 2009.
Another initiative, and one that directly impacts on your profitability, is around the people you employ.
We are making significant changes to employment law.
The 90-day trial period for new employees is being extended to all businesses, we're looking at changing the rules around sick days and we're reviewing the Holidays Act legislation.
This is one more step on the road to growing the economy.
Another area the Government views as critical to growth is around infrastructure and, in particular, water.
I don't need to tell arable farmers that you need water to grow things.
Water is possibly our biggest opportunity to grow our economy.
It is New Zealand's liquid gold.
We have plenty of it, but not always in the right place and at the right time.
The focus of the new direction is on water quality, water quantity, allocation and infrastructure, and especially water storage.
We are close to getting a report back from the Land and Water Forum. I am expecting something pretty substantive.
And after that, it will be over to Government to move quickly.
Recently we made the Community Irrigation Fund more user-friendly because we want irrigation projects to roll out.
We've spent the last 18 months working hard to get rid of regulatory roadblocks. On a local note, this triggered the passing of the Environment Canterbury legislation. This was the first step to improving Canterbury's water management.
It was drastic and courageous action. But it was necessary.
The Government is working on other initiatives which I can't announce tonight but when it comes to getting infrastructure developed, all I can say is watch this space.
I believe that we have proved ourselves to be a Government of growth and action.
I believe we have done a credible job.
But there's still more to do.
This Government will continue working hard to create a field of play where your industry can, and will succeed. But you must play your part too.
It will be teamwork between industry and Government that will deliver the economic growth this country needs.
Thank you again for inviting me to speak to you - and enjoy the rest of your conference.
Good evening ladies and gentlemen.
Thank you Nick Pyke for your introduction, I am delighted to be here in Ashburton for the Foundation for Arable Research conference.
Your conference theme strikes a real chord for me – "Sowing the Seed for a Brighter Future". This fits well with the Government’s goal.
We want to grow the economy in order to deliver greater prosperity, security and opportunity for all New Zealanders.
We need to reclaim our position as one of the leading economies in the developed world.
To reach our goal and to catch up with our trading partners, we need a step change in our overall economic performance.
This means every sector of our economy.
The primary sector is crucial to getting us over the line.
What most people don’t realise is that the export sector went into recession in 2004 – a full five years before the global financial crisis. We just didn’t see it.
This National-led Government’s first year in office was about rebalancing the skew. We are now out of recession and back on track – our focus has turned to accelerating economic growth.
Every sector has a responsibility to lift its game. There are no exceptions - the arable sector has an important role in turning our economy around.
And the Government is doing its bit.
Our rolling maul of initiatives to kick start growth includes revamping the tax system, encouraging innovation, reforming regulations and boosting infrastructure.
I want to briefly touch on these.
Our reformed tax system sees three quarters of all New Zealanders now paying a top tax rate of just 17.5 cents in the dollar.
There is, of course, a downside to this figure. The threshold of $48,000 is a real indication we are not the high income society we like to think we are.
The aim behind our tax reform is to create incentives for people to work hard, improve their skills and get ahead.
Initiative two is about encouraging innovation.
This Government knows we can’t rely on research and development of previous decades. That is why we committed to match primary industries dollar-for-dollar as part of the Primary Growth Partnership innovation fund.
Thank you, guys for being really enthusiastic early joiners of the PGP with your FAR project.
You were one of the first to put in a robust application, and work through what is clearly a very rigorous process.
Your project is exactly what this fund is about – those seriously innovative ideas.
Planting special grasses that don’t attract birds around airports sounds pretty good to me - and I can say that as someone who uses airports a lot!
Initiative three is about draconian regulations which strangle economic growth.
One of the first things this Government did was to streamline the Resource Management Act. Legislation was introduced to Parliament within our first 100 days and came into law on 1 October 2009.
Another initiative, and one that directly impacts on your profitability, is around the people you employ.
We are making significant changes to employment law.
The 90-day trial period for new employees is being extended to all businesses, we’re looking at changing the rules around sick days and we’re reviewing the Holidays Act legislation.
This is one more step on the road to growing the economy.
Another area the Government views as critical to growth is around infrastructure and, in particular, water.
I don’t need to tell arable farmers that you need water to grow things.
Water is possibly our biggest opportunity to grow our economy.
It is New Zealand’s liquid gold.
We have plenty of it, but not always in the right place and at the right time.
The focus of the new direction is on water quality, water quantity, allocation and infrastructure, and especially water storage.
We are close to getting a report back from the Land and Water Forum. I am expecting something pretty substantive.
And after that, it will be over to Government to move quickly.
Recently we made the Community Irrigation Fund more user-friendly because we want irrigation projects to roll out.
We’ve spent the last 18 months working hard to get rid of regulatory roadblocks. On a local note, this triggered the passing of the Environment Canterbury legislation. This was the first step to improving Canterbury’s water management.
It was drastic and courageous action. But it was necessary.
The Government is working on other initiatives which I can’t announce tonight but when it comes to getting infrastructure developed, all I can say is watch this space.
I believe that we have proved ourselves to be a Government of growth and action.
I believe we have done a credible job.
But there’s still more to do.
This Government will continue working hard to create a field of play where your industry can, and will succeed. But you must play your part too.
It will be teamwork between industry and Government that will deliver the economic growth this country needs.
Thank you again for inviting me to speak to you – and enjoy the rest of your conference.
Good morning everyone.
Thank you Peter Fraser for your words of welcome. And thank you for the opportunity to open the Nursery and Garden Industry Association annual conference.
As a proud Cantabrian, I can think of no better place to talk about your industry than here in the Garden City.
Your conference theme, "What is your game plan?" is a good lead for me.
And I'm here to answer that question on behalf of the Government.
So, what is our game plan?
There was a time in our past when the All Blacks were considered unbeatable - one side even earned the name ‘The Invincibles'.
But times have changed.
The current All Black squad and support team are working on a revised game plan, and are going well.
Their target is serious - only winning will do.
A winning game plan requires action on a number of fronts with the most important being the setting of a clear vision or goal.
This Government's goal is equally serious. We want to grow the economy in order to deliver greater prosperity, security, and opportunity for all New Zealanders.
Just like the All Blacks, New Zealand needs to reclaim its position as one of the leading economies in the developed world.
In the early 1950s, we were the second wealthiest nation in the world.
When we stack ourselves up against other developed nations now, New Zealand has steadily declined in relative wealth over the past 60 years. To achieve our goal and to catch up with our trading partners we need a step change in our overall economic performance.
This means every sector of our economy.
The primary sector is crucial to getting us over the line.
What most people don't realise is that the export sector actually went into recession in 2004 - five years before the global financial crisis.
The reason we didn't see it was because it was masked by two factors.
The first one was our nation's continued obsession with property, where we chase capital gain rather that productive returns.
The second was a huge increase in Government expenditure under the last Government.
Our first year in office was about rebalancing this skew. We are now out of recession and back onside. Our focus has turned to accelerating economic growth.
But every sector has a responsibility to lift its game. There are no exceptions, so the nursery and garden industry is a part of turning our economy around too.
You make an important contribution to the New Zealand economy, at least a quarter of a billion dollars a year, but we need you, like every other business and industry, to do better.
The Government is doing its bit. Our rolling maul of initiatives to kick start growth includes revamping the tax system, encouraging innovation, reforming regulations and boosting infrastructure.
Our reformed tax system sees three quarters of all New Zealanders now paying a top tax rate of just 17.5 cents in the dollar.
There is, of course, a downside to this figure. The threshold of $48,000 is a real indication we are not the high income society we like to think we are.
The aim behind our tax reform is to create incentives for people to work hard, improve their skills and get ahead.
In regards to encouraging innovation, this Government knows we can't rely on research and development of previous decades. That is why we committed to match primary industries dollar for dollar as part of the Primary Growth Partnership innovation fund.
Part of the PGP was specifically allocated to horticulture. I am keen to see your sector take advantage of this opportunity.
Draconian regulations have had a stranglehold on economic growth and that is why one of the first things this National-led Government did on coming into office was to streamline the Resource Management Act. That legislation was introduced to Parliament within our first 100 days.
Another area that directly impacts on your profitability, and so is a crucial element to the success of your business, is the people you employ.
We are making significant changes to employment law.
The aim is to reduce compliance costs, give businesses more confidence to take on new staff, and help resolve workplace disputes faster.
One important part of our employment law package is the extension of the 90-day trial period for new employees.
Despite the unions' overreaction and bluster this trial has worked. It has taken the risk out of businesses taking on new staff, and it gives workers the chance to prove themselves.
The voluntary trial period will now cover all employers, not just those with fewer than 20 staff.
Changes to the Holidays Act are aimed at reducing direct costs and compliance costs so businesses can invest their time and money in growing their business and creating more jobs.
We will also amend the current law so employers can act when they suspect an employee of pulling a ‘sickie' by asking for a doctor's certificate, but at the employer's expense.
This option is for those suspected of routinely abusing the sick leave provision. Many of you would know the frustration of employing someone who calls in sick on busy days or has a pattern of taking Mondays or Fridays off work.
The other area the Government views as critical to accomplishing its game plan is infrastructure and in particular our water resource.
I don't need to tell nurserymen that you need water to grow things. Within the primary sector, water is our biggest opportunity to grow our economy.
It is New Zealand's liquid gold and our key competitive advantage.
The thing is we have plenty of it, but not always in the right place and at the right time.
This has led to demand outstripping supply, concerns about water quality and economic opportunities being constrained.
If the availability of water is a limiter, we need to address this issue and develop a new game plan.
The focus of the new direction for water is on water quality, water quantity, allocation and infrastructure, and especially water storage.
We need to ensure that the changes we make are workable and carefully balance New Zealand's important environmental reputation, cultural concerns and community expectations with ongoing economic growth.
Our first job has been to clear the regulatory road blocks. On a local note, one of these was passing the Environment Canterbury legislation. This was the first step to improving Canterbury's water management.
It was a big call to replace elected councillors with appointed commissioners, but this circuit breaker was required to ensure Canterbury water is better managed.
The only other area I want to cover today is biosecurity.
Biosecurity is high on my agenda. If there was a major incursion it would seriously jeopardise our growth plan.
A huge amount of money, three quarters of a billion dollars, is spent annually on biosecurity in New Zealand. Activities are undertaken by central government, regional councils, industry and private landowners.
MAF's Director General Murray Sherwin will be updating you on biosecurity matters tomorrow in more detail so I'll touch on this only briefly.
The physical border is a very challenging place.
Trade and travel volumes are increasing, presenting new and diverse types of biosecurity risk along the way. 175,000 items a day come across our borders.
As more people and goods cross our borders, the potential for harmful pests and diseases to enter increases.
A case in point is the Hadda beetle. Hadda already had a foot in the door by the time it was first identified by a retired entomologist.
After all, it looks like our ladybird to the less qualified observer.
MAF Biosecurity and Horticulture New Zealand are working together on ways to combat this beetle, which could pose a serious risk to some in the horticulture sector.
We must be vigilant, and continue to find new ways to manage biosecurity risks more efficiently.
For success in these and other areas of mutual interest, teamwork between industry and Government is critical.
This conference provides an excellent forum for learning from each other and listening to experts from both New Zealand and overseas.
You have an interesting and varied line up of speakers.
Good luck to Rachel Vogan and the rest of the team who will be implementing your game plan in the coming year.
I know Rachel is from good stock. Like me, she is from Banks Peninsula.
Our Government will continue working hard to create a field of play where your industry's game plan can and will succeed.
I wish you all an enjoyable and fruitful time over the next couple of days.
Thank you.
Agriculture Minister David Carter has congratulated the Meat Industry Association and Beef + Lamb New Zealand on joining forces with a plan to lift the performance of the meat industry.
"There is no doubt that greater co-operation is critical for the meat industry to lift its game so today’s announcement of a joint strategy is exactly the action needed," says Mr Carter.
"It has been widely acknowledged for some time that status quo for the industry is unacceptable, but there has been a frustrating lack of action. This must change.
"Our farmers are efficient and innovative producers of high value products and the world is demanding more. We’re getting record high prices for our meat in the UK. Yet the industry is struggling.
"This partnership between the two industry organisations representing farmers and processors is an obvious link to the future profitability of the sector."
Mr Carter says swift action is needed to capture the top-end of the market and the world’s most discerning customers.
"I congratulate the Meat Industry Association and Beef + Lamb New Zealand for recognising this and adopting a collaborative approach. It is important this strategy is developed by the sector, for the sector.
"The Government has committed to supporting this initiative because we must all work together to bring back much-needed profitability to this industry," Mr Carter says.
Agriculture Minister David Carter today announced changes to the Community Irrigation Fund to help fast track the development of agricultural irrigation schemes.
"Accelerating reliable and environmentally sound irrigation to secure access to fresh water is one of the most obvious ways to boost primary sector growth," says Mr Carter.
The Government is extending the scope of the Community Irrigation Fund to speed up and improve the management of irrigation scheme developments and reduce costs.
"While the size of the fund remains the same, its eligibility criteria will widen to cover the funding of technical design work for irrigation schemes and training for scheme developers in areas such as financial management and community and local government management skills," says Mr Carter.
"What won’t change is the need for applicants to demonstrate very sound environmental standards and processes.
"Access to fresh water is vital for growing our primary industries but getting an irrigation scheme off the ground is a complex, time consuming process.
"The Community Irrigation Fund plays a key role in supporting local communities and regional councils to develop irrigation schemes and water strategies."
For information visit: www.maf.govt.nz/mafnet/rural-nz/cif
Agriculture Minister David Carter has welcomed the unanimous passing today of legislation that significantly raises penalties for cruelty to animals.
The Animal Welfare Amendment Act will increase the maximum sentences and fines for animal ill-treatment and neglect, and redefine the way some offences are described.
"This legislation sends a clear message that serious offending against animals will not be tolerated," says Mr Carter.
"The unanimous support it received in Parliament reflects the fact that New Zealanders want strong laws to protect animals from harm."
The Act expands the threshold for the offence of wilful ill-treatment – the most serious animal welfare offence – and it adds a new offence of reckless ill-treatment.
The maximum sentence for wilful ill-treatment of an animal increases from three to five years and the maximum fine will double to $100,000 for an individual and $500,000 for a body corporate.
Penalties also increase for a range of other neglect and ill-treatment offences and the Act expands the law relating to forfeiture of animals and disqualification from having custody of animals.