Hon David Carter - Speeches

Taratahi/Western Institute of Technology launch

nospam@example.com (admin) — Tue, 31 Aug 2010 12:15:10 +1200

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.

Speech to New Zealand Winegrowers Romeo Bragato Conference

nospam@example.com (admin) — Thu, 26 Aug 2010 12:24:32 +1200

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.

What the kiwifruit industry can do for NZ

nospam@example.com (admin) — Thu, 19 Aug 2010 15:22:12 +1200

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.

Address to Institute of Forestry and Pulp & Paper Industry Annual Dinner

nospam@example.com (admin) — Thu, 12 Aug 2010 21:00:00 +1200

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.

Labour’s flip-flop on high country rentals

nospam@example.com (admin) — Thu, 05 Aug 2010 15:45:31 +1200

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.

Address to Horticulture New Zealand Conference

nospam@example.com (admin) — Wed, 04 Aug 2010 10:05:02 +1200

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.

Sowing the seed for a brighter future

nospam@example.com (admin) — Thu, 29 Jul 2010 11:01:53 +1200

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.

Sowing the seed for a brighter future

nospam@example.com (admin) — Wed, 28 Jul 2010 19:15:00 +1200

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.

The Government's game plan

nospam@example.com (admin) — Wed, 28 Jul 2010 08:45:00 +1200

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.

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.

Launch of New Zealand Walking Access Commission Outdoor Access Code

nospam@example.com (admin) — Wed, 30 Jun 2010 10:00:00 +1200

Ministerial colleague Peter Dunne, fellow MPs, Commission chairman John Acland, ladies and gentlemen: thank you for being here today to launch the New Zealand Walking Access Commission's Outdoor Access Code.

We have a wonderful country. New Zealanders love the great outdoors - whether it's hunting, tramping, fishing, a trip to the beach, or a picnic by the river.

The New Zealand Walking Access Commission, set up in 2008, leads and supports the negotiation, establishment, retention, and improvement of walking access.

Its goal is to achieve certain, free, enduring and practical access to the outdoors in a way that respects everyone's rights, and the environment.

One of the Commission's first tasks has been to produce a code of responsible conduct in relation to this, and I am pleased to support this.

While the Code focuses on walking access, the basic principles are actually applicable to other activities, such as mountain biking, horse riding, and fishing.

The Code aims to enhance people's knowledge and understanding of what to do in the outdoors and raises awareness of access rights and responsibilities.

It is practical and informative.

It should also help to minimise damage and nuisance by encouraging responsible behaviour. In turn I hope this will encourage landholders to allow access.

I commend the Commission, all stakeholder groups, and members of the public who contributed to the development of this Code.

There is a need to safeguard both private property rights and public property rights.

Property rights are important to this Government.

They are essential for the smooth running of our economy and society.

Farmers produce what becomes two-thirds of our merchandise export earnings. They need certainty about the status of their property rights when it comes to walking access and the security of their farming businesses.

Parliament was quite clear when it passed the Walking Access Act 2008 that private land is private land, and the landowner has the right to refuse access to anyone for whatever reason.

It was also clear that public land is available for access, and the public as ultimate owner has the right to know where it is.

The message is that just because there is legal access, it does not mean that the access is either practical or safe or reasonable. Potential users need to take care and apply common sense where there might be areas of doubt.

And that's where the Outdoor Access Code plays its part.

The New Zealand outdoors is a special place, but it can be dangerous for the unprepared, and vulnerable to damage by people unaware of how their actions can have adverse impacts.

Colleagues, chairman John Acland, ladies and gentlemen: I'm delighted to be here today to launch the New Zealand Walking Access Commission's Outdoor Access Code.

I hope you all take a copy when you finish, and help distribute it widely. I now declare the Outdoor Access Code officially launched.

Address to National Beekeepers Association Conference

nospam@example.com (admin) — Tue, 29 Jun 2010 15:30:00 +1200

Good afternoon ladies and gentlemen. Thank you, Glenn Kelly, for the introduction.

I would also like to thank the National Beekeepers Association president, Frans Laas, for this invitation to speak here today.

And I also want to acknowledge the organising committee of the Nelson Branch, who are hosting this conference.

I'm pleased to see such a large participation. Perhaps this is to be expected, as New Zealand now has 375,000 registered beehives, a record number.

This is a tribute to the resilience of your industry.

When varroa arrived a decade ago, many people predicted the industry would shrink and even disappear. You have proved them wrong.

New Zealand now has substantially more hives than when varroa arrived.

But I don't want to minimise the impact of varroa on the industry.

Many South Island beekeepers are still coming to terms with how to turn a profit while meeting varroa control costs. You don't have the cushion that high manuka honey prices provided to the North Island.

You do, however, have the advantage of a decade in which to prepare, and some very useful hands-on advice from your colleagues in the North Island.

At your conference last year, one of the key topics discussed was manuka honey.

At the time, several key exporters were feuding in public, and the industry appeared to be spending more on lawyers to fight each other than on marketing the product.

A year on, I am pleased to note some progress. As an outsider, it appears that the in-fighting has either died down, or is being conducted in private.

More importantly, the ring trials organised by the Manuka Honey Steering Group appear to have brought some much-needed consistency to the labs carrying out testing of anti-bacterial activity.

I am told that the improved testing procedures have lowered the amount of ‘active' manuka honey entering the market, and claimed levels of ‘activity' for that honey have dropped.

This will undoubtedly cause some pain. However, an industry based on dodgy test results is never going to have a bright future. As some MPs have recently found out in relation to credit cards - sooner or later the public finds the truth.

It is always better to put your house in order privately, than have to do it in the full glare of public exposure.

So where to from here? As far as I can see, the industry has taken some big steps in the right direction, but it still has a way to go.

While the laboratory test results have become more credible, the industry still needs to ensure that the claims on the label match up with what's in the jar.

New Zealand has fair trading laws that prohibit false claims, but these tend to be acted on only after a complaint is lodged.

And New Zealand laws cannot control the claims made in other countries about products exported from New Zealand.

I don't have a ready-made solution for this problem, but it is one the manuka industry needs to face up to. A small number of rogue operators could damage the reputation of your industry.

There is one other challenge that the manuka industry needs to consider.

Ever since the days of Phar Lap, our neighbours across the Tasman have not been slow in spotting a winning idea from New Zealand.

Species closely related to manuka are found in many parts of Australia, and their beekeepers have seen the impact manuka has had on the New Zealand honey industry.

The New Zealand industry needs to monitor what is happening elsewhere, and ensure it keeps in front of rival producers.

At present there seems to be no organisation in the honey industry responsible for doing this, and I wonder if you need to reflect on this.

When I spoke to you last year, we were all waiting for the report from the independent review panel on import health standards for Australian honey.

As I said at the time, any decision on any import must be based on science.

We demand this of other nations as we battle for entry of New Zealand products. We must therefore be extremely even-handed and open in the way we deal with imports, but at the same time be mindful of biosecurity risks.

When the report was received, it made a number of recommendations for further work to be carried out.

In March this year, the Ministry of Agriculture and Forestry finalised a work programme that will take around two years, and cost over $540,000.

During the standard exotic disease surveillance programme this autumn, extra samples were collected. These samples are now being tested for three diseases that have not traditionally been covered by surveillance.

The presence of P. alvei has now been confirmed, in two soil samples taken from apiary locations in different parts of the North Island.

Unfortunately when interpreted in conjunction with the previous isolation of P.alvei from a bumble bee in Ohope, MAF believes this provides compelling evidence for the established presence of this organism in New Zealand. As such, there is no justification for measures against this organism in imported honey.

The survey work for the other two organisms, Israeli Acute Paralysis Virus and Nosema ceranae, continues. Samples from autumn 2010 will be processed by October. If no sign of these diseases is found during this pilot survey, full-scale proof-of-absence surveys for both of those organisms will be carried out in 2011.

MAF is also discussing with offshore research providers the feasibility of carrying out research on heat inactivation of Israeli Acute paralysis Virus and Nosema ceranae.

I have no more idea than you on what the outcome of this work will be. However, you may wish to give some thought to the different possible outcomes.

One possibility is that the additional research will show that the risks posed by Australian honey imports can be successfully managed, or that the diseases in question are already here.

If this is the case, you need to think about how your industry will react.

If the scientific evidence is against you, continuing a battle to keep Australian honey out will be a challenge. The industry will need a strategy to compete on the domestic market, which will be a whole new ball game for you.

I stress that I do not know what the outcome of this work will be. But what I am saying is that you would be unwise to put off any forward planning until the results are in.

I want to address here the important issue of biosecurity. Of my three portfolios - agriculture, forestry and biosecurity - it is biosecurity that poses the greatest challenge. But is the most important.

Next year, we expect five million people to arrive in New Zealand and 600,000 shipping containers will come through our ports.

In the face of this rising pressure, our biosecurity systems can't stand still.

This Government is planning an overhaul of the Biosecurity Act that will include changes to the way we manage risks at the border.

We also need to improve out surveillance and response systems to deal with pests that get past the border. Varroa taught us that.

One mechanism for doing this is via government-Industry Agreements. At present, surveillance is designed, funded and largely carried out by the Government.

The same applies to incursion responses.

You have all heard of the ‘golden rule' - "whoever has the gold makes the rules!" For the last few years, the Government has been discussing an alternative approach with primary industries.

In the future, the Government would like to work jointly with industry groups to agree what pests are important enough to carry out surveillance for, and how responses should be carried out.

Costs for both surveillance and response would be shared by government and industry. In return, industry would get much more say in decision-making.

Some people have suggested this is an attempt by the Government to cut spending.

This simply isn't true - there is no possibility that government spending on biosecurity will fall.

In Rotorua last year, I suggested that the primary sector would be the engine that pulled New Zealand through this rough patch in the global economy.

I'm pleased to say that this prediction has come true.

While Europe and North America are still struggling with mountains of debt, demand from the developing world has kept commodity prices at healthy levels.

In the year to April 2010, New Zealand recorded its first annual balance of trade surplus since 2002. While this is very good news, it indicates how poor our export sector performed over the best part of a decade.

As a vital part of our primary sector, you must be part of the engine room of our economy.

In summary, the bee industry has come through some big challenges, and has still managed to expand.

I don't think life is about to get any easier, but as beekeepers you can take a lot of comfort from the way your industry has managed to grow and adapt over the past decade.

When one of my predecessors spoke at the NBA conference in Gisborne ten years ago, very few of you would have predicted the industry would expand to 375,000 hives.

Few people would have predicted an increase in honey crops, and a vast increase in export value.

Few would have predicted the strong demand for pollination hives from the small seeds industry, or the avocado growers.

I am confident that your industry has the ability to grow and develop for another decade, probably in ways that none of us expect.

It's New Zealand's reliance on primary production that has led us out of recession. That relevance will become more important over the next decade when we will enjoy increased prosperity as the economy rebalances.

Thank you again for inviting me to address your conference.

I wish you all the best for the remainder of your discussions.

Speech to Federated Farmers National Conference

nospam@example.com (admin) — Thu, 24 Jun 2010 11:00:00 +1200

Thank you for inviting me to speak to you today.

I would like to acknowledge your President Don Nicolson, Vice-President Donald Aubrey, Chief Executive Conor English, provincial presidents and delegates.

Before the 2008 election I attended your manifesto launch at Wellington Railway Station.

At the launch, Don Nicolson told politicians and media the three key priorities for farmers were:

to ensure the next government controlled its expenditure;
getting water storage on the list of infrastructure projects;
and getting an exemption for farm animals from the New Zealand Emissions Trading Scheme.

So let's consider progress on these. With the change of government you definitely got the first two.

In regards to the ETS, given the political and economic realities, we have delivered a pragmatic and balanced solution.

This Government is doing what farmers have asked for.

Of course we won't agree on everything but the sum of our disagreements is no match for our shared interests.

This National-led Government and Federated Farmers share many of the same hopes and concerns.

We are both acutely aware of the vital contribution agriculture makes to our economy.

We're both relieved to be seeing the back of the recession and we can both credibly acknowledge that it was agriculture that led our recovery.

We both want to see a more productive New Zealand.

This Government's over arching goal is economic growth.

With the primary sector responsible for 66 percent of our export merchandise earnings, profitable, sustainable farming businesses are essential to achieving that growth.

We want farmers to prosper because that means every New Zealander prospers. In this regard, Government and Federated Farmers' aspirations are exactly the same.

In my speech today I want to share with you my view of where the New Zealand economy is headed.

I also want to focus on costs versus investment, and the need to view some apparent ‘costs' as an essential investment in the growth of our sector and your personal income.

For instance, it has cost Federated Farmers and each of you a significant amount to attend this conference. Do you view this expenditure as a cost or as an investment in your farming future?

I, for one, certainly hope it is the latter.

Now, in order to talk about where we're going, we need to understand where we are right now.

A recent KPMG report echoed a line I've been saying for some time. New Zealand is no longer a low cost producer of dairy, meat or fibre - and neither should it be.

Take your Meat and Fibre section's aim of $150 a lamb.

Whether you believe this is realistic or not, I can tell you it's unachievable if our focus is on being the cheapest producer. Instead, our product must be marketed to customers prepared to pay $150.

Yes, there is a need to reduce costs within the value chain but equally there is a need to add value to our produce and invest in its future. This need will only grow larger over time.

Another fact about the here and now is that while agriculture is extremely important to New Zealand, we are small in global terms.

We produce just over a third of the world's exported milk production, but our share of total world milk production is just over two percent.

Globally, much more pork and poultry is consumed than beef and lamb.

Sheep meat makes up five percent of world meat consumption and New Zealand's sheep meat exports only account for three percent of that total consumption.

The plus side of this is that as a small country we export a lot. By meeting consumer requirements we will continue to have the luxury of an increasingly wealthy, middle-class market, particularly in developing Asian economies.

This is why the OECD forecasts world meat and dairy consumption will increase by almost 20 percent by 2018. And that is only 8 years away.

This means an improved outlook for prices and an opportunity for New Zealand to expand its export markets.

The challenge we have in New Zealand is to position ourselves to take maximum advantage of this.

It is this shift which makes an all encompassing focus on reducing costs and regulation simplistic and outdated. Yes, still important, but other factors must be considered.

This is reinforced by another fundamental of the current global trade situation which is a change in what consumers are demanding.

In turn, retailers are outdoing themselves to meet this demand by being ethically and environmentally responsive.

Simply, the consumer via the retailer is the new regulator.

Earlier this year Marks & Spencer announced its objective of being the most sustainable major retailer in the world by 2015.

Tesco, the third-largest grocery retailer globally, is aiming to be carbon neutral by 2050.

Walmart wants to eliminate 20 million tons of greenhouse gas emissions from its global supply chain by the end of 2015.

The Ministry of Agriculture and Forestry in New Zealand has been approached by a Chinese furniture company supplying Walmart seeking assurances of the legality and sustainability of timber it imports from New Zealand.

In both Japan and Taiwan, they are presently implementing voluntary carbon labelling schemes.

Dr Mike Cherrett, the UK Deputy High Commissioner to New Zealand, recently said that in light of all these trends, New Zealand farmers ignore climate change at their peril.

New Zealand farmers have been good at adapting in the past and these new challenges are no different. We must rise to meet these new challenges.

We have a lot going for us as a country. Already we have a robust international reputation for safe and high quality commodities from a clean, green environment.

To protect this reputation farmers and organisations such as Federated Farmers must realise that some regulatory activities are a necessary investment rather than just another cost to comply with.

Traceability and NAIT is an area that fits neatly into this box.

I know this has been an issue of contention with Federated Farmers but I do acknowledge that your opposition has become a lot less vocal over the past 12 months.

I've already talked about consumers wanting to know where their products have come from. That is why many buy local.

I've seen this trend in supermarkets throughout the world. And don't for a minute think this is just an overseas trend. Most of you would choose a New Zealand tomato ahead of an Australian one, all other things being equal.

This new way of shopping is about a connection to food.

We already know what an asset New Zealand's reputation for food safety is.

Consumers are simply asking for another level of connection; to know that the food or fibre is safe, as well as ethically and sustainably produced.

We have the ability to provide this through strong verification of our credentials and enabling consumers to trace their products back to the paddock.

New Zealand is moving in this direction with the National Animal Identification and Tracing scheme, which will also provide a significantly improved biosecurity response capability.

International demand for lifetime traceability of individual animals is growing.

Already we are behind the European Union, Australia, Japan, South Korea, Canada, Argentina, Uruguay and Brazil.

Federated Farmers is right to seek assurances that costs to farmers, industry and government are kept to a minimum.

But to delay its implementation until traceability is a prerequisite to overseas market access is too big a risk, and would put our competitive position at stake.

Now I want to address the Emissions Trading Scheme.

In your manifesto you called for an exemption for farm animals from the New Zealand Emissions Trading Scheme.

Since then Federated Farmers has delivered to Government a number of mixed messages.

Some of you deny climate change.

Some of you want production animals excluded.

Some of you call for Government to drop the ETS all together.

Some of you threaten to form your own political party.

And the more realistic of you say the National Government's changes are a pretty good pragmatic solution given the political and economic realities.

Whether you like it or not, whether you believe the ETS will help climate change, or whether you believe in climate change at all, the reality is there is legislation for an ETS passed by all except five votes in Parliament.

Forestry has been in the scheme from January 2008 and a number of other sectors will join the scheme from July 1.

When the National Government came into office we did as we promised and amended the scheme to ensure we have a system that gives us the right balance between our environmental responsibilities and our economic needs.

There were strong reasons to continue with the ETS.

Customers expect us to take climate change seriously and may shun our products if they feel we are not.

It provides a point of difference to New Zealand products in the market place.

We delayed agriculture's entry by two years to 2015. We capped the price of carbon to limit costs to all businesses and homes, and we slowed the rate at which free allocations of units decrease.

This gives industries like agriculture longer to begin utilising lower-emissions technology.

Also in the scheme is a built-in regular review.

The first review is legislated, under Section 160 of the Climate Change Response Act, for 2011. And the Prime Minister is on record promising a second review in 2014.

So there will be two reviews before animal emissions may enter the ETS.

As part of these reviews we will consider how New Zealand is positioned in international negotiations, as well as what other countries, including our competitors, are doing with respect to agriculture.

I agree with you completely, there's no point in disadvantaging New Zealand farmers while agricultural producers elsewhere are causing more emissions.

You have my absolute assurance that agriculture will not come into the ETS in 2015, if our major trading partners haven't taken steps to meet their own obligations.

The third area I want to cover today is just some of the many steps this Government has already taken to kick-start economic growth.

In considering this list, it's clear not only how much we have achieved in 20-odd months, but how many issues of major concern to Federated Farmers we have moved to address.

RMA reforms are continuing at a pace.

Numerous Free Trade Agreements have been completed or are underway - China, Korea, India, Trans Pacific Partnership, to name some.

Significant money has been invested in innovation projects to benefit the agricultural sector and to ensure New Zealand is a leading figure in international initiatives.

And perhaps most important of all, real progress is being made on water storage and infrastructure.

Let me be clear - I am working harder on this issue with my Cabinet colleagues than almost anything else.

In my role as your Minister of Agriculture, I have a responsibility to promote ways in which agriculture can play a greater role in delivering this Government's economic growth agenda.

A most obvious way to do this is by accelerating reliable irrigation.

But we want to get water management right. As you know this is not only about storage. It's about efficient distribution, better allocation and better utilisation.

Get it right and we will experience significant economic benefit for generations to come. But in doing so we must maintain high environmental standards.

To sum up, the future of New Zealand farming is as a producer of high quality, value-added product.

And quality has become synonymous with sustainability.

New Zealand farmers must be clean, green and providers of high quality produce.

If we do, farming in this country will enter a new era of profitability.

If we don't, someone else will, and their prosperity will come at our expense.

Federated Farmers' role as a leader in this area is important.

As a Government we want a strong, relevant and respected Federated Farmers that provides leadership for the primary sector.

Throughout this speech I have been talking about cost versus investment.

The challenge I have for Federated Farmers is that at the end of the year when I, and many other farmers, stump up with $500 for our membership sub, will we see it as an investment in our farming businesses - or will we see it as an unnecessary cost?

I want it to be an investment.

Thank you very much.

Celebrating 100 years of Holstein Friesian dairying

nospam@example.com (admin) — Tue, 22 Jun 2010 20:00:00 +1200

Good evening.

Great to be here, and as most of you started at 2am this morning I'll keep my remarks brief!

But wasn't it a great result for the All Whites? Slovenia! Slovakia! Italy! While we are doing well, we don't mind Australia hitching its wagon to us.

Can I acknowledge all the mayors: Brendan Duffy of Horowhenua, Jono Naylor of Palmerston North, and Ian McKelvie of Manawatu District.

Also I'd like to acknowledge Tony O'Connor the President of Holstein Friesian New Zealand, and Robin Faulkner the organiser.

A special welcome to our Australian dairy breeders.

It's great to be here with you tonight to celebrate your centenary.

I would like to open, by paying tribute to the famous Canterbury breeder, the late Mr JCH Grigg, who imported the first ‘Dutch-Friesian' cattle into New Zealand.

New Zealand's dairy industry has been built on the work of the pioneering breeders.

As more breeds were imported, and farmers took steps to keep accurate pedigrees of these animals, the New Zealand Holstein Friesian Association was established in 1910.

For the past 100 years, genetic research and livestock identification systems have been used to improve milk production and therefore the productivity of the New Zealand dairy industry.

It is arguably the most fundamental reason for the New Zealand dairy industry being amongst the most efficient and competitive anywhere in the world.

Herd testing will continue to provide important productivity gains in the years ahead.

I congratulate you, the New Zealand Holstein Friesian Association, for its contribution to growing the New Zealand economy over the past 100 years.

The dairy industry is and will continue to be an integral part of the New Zealand economy.

The industry contributed $10.1 billion in the year to December 2009, or 27 percent of New Zealand's total merchandised export value.

The international appetite for high-quality dairy products continues to grow, particularly in developing countries like China.

With increased demand, comes an increasing focus on food security and sustainable practices.

Growth in the dairy industry is not always welcomed.

The recent MacKenzie Basin debate and the ongoing issue of water quality keep the New Zealand dairy industry firmly in the public eye.

Your industry must continue to show its commitment to tackling these issues if it wishes to retain the support of the community.

We can only continue to farm and prosper if we retain the trust and support of those around us, particularly our urban community.

For this reason we must continue to work at improving our performance and integrity across all farming activities because the challenges we face as an industry, are significant.

One of the biggest challenges, and yet the most unpredictable, is the changing climate.

For many farmers, the 2010 season has been one of drought. Remarkably, it has also been a season of flood.

As is always the case, farmers have shown remarkable resilience however, climate change projections for the country mean we need to be prepared for more - more droughts, more intense rainfall events, greater unpredictability.

In order to be prepared, to remain resilient, then we need to think more strategically about how we manage our fresh water resources.

Water is of huge strategic importance yet we have been failing to properly manage it.

The irony is, New Zealand has an abundance of water, it just doesn't always end up in the right place at the right time and that means we must store it.

Water management is not only about storage. It's about efficient distribution, better allocation and better utilisation.

I have made no secret of the fact that I will drive hard to deliver better water outcomes.

The illustration of this is no more apparent than in my home patch of Canterbury.

Despite having 70 percent of New Zealand's irrigated land, Canterbury still does not have an operative water plan.

It was a big call for the Government to replace Environment Canterbury councillors with commissioners. But we want to see a step-change in water management in this area.

Only special powers to fast-track completion of a plan for water and statutory recognition being given to the Canterbury Water Management Strategy will deliver this.

Frankly I would be failing in my job if I didn't push the water agenda and deliver with it the security of long-term economic growth.

But there will not be progress unless we take people with us.

It won't be irrigation at any cost.

Speaking of cost - I need to mention the Emissions Trading Scheme.

I am well aware there is much apprehension amongst farmers about the ETS.

Let's put it in context, the scheme is New Zealand's response to our obligations under the Kyoto Protocol.

As we developed our pre-election policy, we gave some thought to abandoning it.

There's a number of reasons why we didn't.

Significant amongst these was fear of a trade backlash, particularly from Europe.

So we pushed out agriculture's entry to 2015.

Like every other New Zealander, farmers will cop an increase from July 1.

But it is not what you've been told by some lobby groups. It is three cents per litre of petrol, three cents per litre of diesel and a five percent increase in electricity. For the average dairy farm its $3300 per year.

The last thing I want to mention is the work that the Government is doing to improve market access conditions for New Zealand exports into our key markets.

When it comes to dairy however, this is never easy.

We are up against one of the most heavily subsidised and protected sectors in the world.

We already have a number of Free Trade Agreements under our belt - notably with China - and we're working on several more. These include Korea and India, as well as the TransPacific Partnership Agreement which includes the USA.

This will not be an easy battle and the US dairy farmers are a powerful lobby group and one that Congress would ignore at their peril.

We must continue to keep pushing forward and improving access to new markets. This is where our environmental credentials, our biosecurity system and our food safety standards hold us in good stead.

This is also why we cannot afford to lose the momentum that the New Zealand dairy industry has gathered over the past 100 years.

In closing I want to take this opportunity to re-affirm this Government's commitment to ensuring the primary sector continues to be a growth engine of our economy.

While the past two years have seen extreme volatility in international prices, market growth gives me every reason to be confident about the long-term outlook for dairy.

I congratulate the New Zealand Holstein Friesian Association centenary, and for your contribution to growing the New Zealand economy.

I wish you all the best in your endeavours and I encourage you to always be looking ahead and taking advantage of the opportunities that will make New Zealand dairying ever more successful.

Speech to Association of Rural Veterinary Practices Conference

nospam@example.com (admin) — Mon, 14 Jun 2010 09:50:00 +1200

Good morning, it’s a pleasure to be here with you today.

I guess I should start by taking this opportunity to say thanks for the assistance your profession has given me over my farming career.

My early involvement establishing my cattle embryo transplant business in New Zealand means I employed a number of vets for many years, so I know your industry pretty well.

Since becoming Minister, I’ve seen more and more involvement from your profession as New Zealand, and international society, becomes more aware of animal welfare issues.

I’ve been asked to speak to you today about some of the challenges facing our farming sector. I will certainly do this, but I also want to speak to you about the opportunities.

A good starting point is to look at where we have come from, and the wider economy.

When this National-led Government came into office 18 months ago New Zealand was in recession.

Our first year was about getting us through that crisis and back into shape.

Last year’s Budget focused on recovery. We wanted to come out of the downturn with as little damage as possible and certainly in better shape than most of our major trading partners.

Only a year later, and our latest Budget shows our focus is now on accelerating growth.

This is about securing jobs, attracting investment, and lifting the living standards of all New Zealanders.

The world doesn’t owe us a living.

If this country really wants to catch up to Australia, we need a concerted effort by all New Zealanders.

Because so much of our economy is based on production and agriculture, you and I need to find a way to harness greater productivity and profit from farming.

I want to look now at three key areas the Government is pushing to ensure growth within the primary sector:

• tax reform;

• investment in science; and

• New Zealand’s biggest natural advantage, water.

Firstly, let’s look at tax.

Budget 2010 saw tax changes that constitute the most significant overhaul of tax rates in 25 years.

What we have done, in a nutshell, is to lower headline personal and company income tax rates, while at the same time broadening the existing tax base.

We are increasing indirect taxation, and are tightening up on the ways people have been able to structure their affairs to dodge the tax they pay.

By October, three quarters of all taxpayers in New Zealand will pay a top rate of only 17.5 cents in the dollar. This truly labels New Zealand as a low tax economy.

These changes to our tax system will lift New Zealand’s long-term economic performance. The changes also contribute to our other goals, including making the tax system fairer and more sustainable.

Secondly, to ensure growth, Government is investing in science. Our future economic performance in New Zealand depends to a considerable extent on generating and using new ideas, particularly in agriculture.

Science is an area that has seen under-spending over the past two decades. We are committed to reversing that underinvestment.

Budget 2010 sees $321 million allocated for new research, science and technology initiatives over the next four years.

This new investment builds on our initiatives introduced last year – namely the Primary Growth Partnership which aims to transform great ideas into research, development, and ultimately products, jobs and growth. And the Domestic Agriculture Centre for Greenhouse Gas Research and the Global Research Alliance on agricultural greenhouse gases.

Thirdly, to ensure growth we must look at our greatest competitive advantage – water – or ‘liquid gold’ as it was referred to in a recent KPMG report.

A huge amount of rain falls on our landmass compared with other food producing countries.

In fact we get three times as much as Australia on a per hectare basis.

But rain doesn’t always fall in the right place at the right time.

The obvious answer to increased productivity is water storage and irrigation.

Up until now, the red-tape around projects has been so bad it has stopped progress.

This Government's first efforts have been to remove regulatory roadblocks and we are now well on track to advancing this agenda.

So far I have talked about the wider landscape, where we’ve come from, where we are at and some of the action the Government is taking.

I want to now focus on our future.

Our primary sector is hugely important to New Zealand, both in terms of export trade and image.

Our farmers, and the industries and professions that support them, including you vets, have a reputation for being innovative and sensitive to market opportunities and change.

We can no longer compete as a low cost producer, South America has seen to that.

Our future is as a producer of high quality, value-added product.

Our international customers are discerning.

They demand to know how the food and fibre they buy is farmed, and the environmental impact of our production systems.

New Zealand has a good story to tell – our pasture-based ‘free range' farming appeals.

New Zealand also has an ethical, principled and scientifically-based animal welfare system. It is highly regarded internationally.

We trade on this reputation.

I do become concerned when, the sheep and beef sector particularly is under some economic pressure, farmers shy away from calling the vet and miss the opportunity to get the right expertise.

I care for the way animals are farmed in this country and I link it to the fact that our overseas markets are watching every move we make in this area.

It is also why this Government allocated $8.2 million for animal welfare in this year’s Budget, the largest increase in funding in the last decade.

I want to touch briefly now on the National Animal Identification and Tracing scheme, an initiative started by the previous Government and one that I know is essential to complete.

There are two purposes to NAIT.

One is to satisfy market demand and the other is to be better prepared in the case of a disease incursion.

International demand for lifetime traceability of individual animals is growing.

The European Union, Australia, Japan, South Korea, Canada, Argentina, Uruguay and Brazil have, or are developing, mandatory animal identification and tracing schemes that quickly provide reliable information.

NAIT will also improve our ability to prepare for, and respond to animal disease outbreaks.

When NAIT is fully operational the costs of a disease outbreak or product contamination will be limited.

I want to conclude by saying I understand the challenge the industry has in attracting vets to live and work in rural New Zealand.

Last year I implemented the Voluntary Bonding Scheme for veterinarians to address this issue

The scheme was originally aimed at practices in specific rural areas, and 20 vets were accepted in its first year.

From this year, as a result of feedback from vets, all practices that deal with production animals are now eligible. That is provided they spend most of their time working with these animals.

Four months into the second year of the scheme, a further 20 vets have so far taken up the opportunity to receive up to $55,000 by working with an eligible practice for three to five years.

As we move to the second half of this parliamentary term, I hope we’ve been recognised by users as a government of growth and action.

We have clearly established a growth plan and we’ve pragmatically taken action on a number of issues for a positive future.

By pragmatically, I’ll give you an example.

The Commercial Slaughter Code of Welfare came back from the National Animal Welfare Advisory Committee and sat on the previous Minister’s desk; he sent it back to the Committee because he wasn’t completely happy with the recommended exemption for Shechita.

It came back again unchanged. When it came to my desk I decided it had to be dealt with.

And now I have issued it – there are no exemptions.

In doing so, we may have upset a relatively small religious minority, and I do appreciate their strong feelings for this issue but frankly I don’t think any animal should suffer in the slaughter process.

At the end of the day, my responsibility is to make decisions and move forward, and that’s what I’ve done.

For my part I am committed to ensuring New Zealand farmers stay at the top of the global game.

Enjoy the rest of your conference and thank you.

Speech to Association of Rural Veterinary Practices

nospam@example.com (admin) — Mon, 14 Jun 2010 09:00:00 +1200

Good morning, it's a pleasure to be here with you today.

I guess I should start by taking this opportunity to say thanks for the assistance your profession has given me over my farming career.

My early involvement establishing my cattle embryo transplant business in New Zealand means I employed a number of vets for many years, so I know your industry pretty well.

Since becoming Minister, I've seen more and more involvement from your profession as New Zealand, and international society, becomes more aware of animal welfare issues.

I've been asked to speak to you today about some of the challenges facing our farming sector. I will certainly do this, but I also want to speak to you about the opportunities.

A good starting point is to look at where we have come from, and the wider economy.

When this National-led Government came into office 18 months ago New Zealand was in recession.

Our first year was about getting us through that crisis and back into shape.

Last year's Budget focused on recovery. We wanted to come out of the downturn with as little damage as possible and certainly in better shape than most of our major trading partners.

Only a year later, and our latest Budget shows our focus is now on accelerating growth.

This is about securing jobs, attracting investment, and lifting the living standards of all New Zealanders.

The world doesn't owe us a living.

If this country really wants to catch up to Australia, we need a concerted effort by all New Zealanders.

Because so much of our economy is based on production and agriculture, you and I need to find a way to harness greater productivity and profit from farming.

I want to look now at three key areas the Government is pushing to ensure growth within the primary sector:

tax reform;
investment in science; and
New Zealand's biggest natural advantage, water.

Firstly, let's look at tax.

Budget 2010 saw tax changes that constitute the most significant overhaul of tax rates in 25 years.

What we have done, in a nutshell, is to lower headline personal and company income tax rates, while at the same time broadening the existing tax base.

We are increasing indirect taxation, and are tightening up on the ways people have been able to structure their affairs to dodge the tax they pay.

By October, three quarters of all taxpayers in New Zealand will pay a top rate of only 17.5 cents in the dollar. This truly labels New Zealand as a low tax economy.

These changes to our tax system will lift New Zealand's long-term economic performance. The changes also contribute to our other goals, including making the tax system fairer and more sustainable.

Science is an area that has seen under-spending over the past two decades. We are committed to reversing that underinvestment.

Budget 2010 sees $321 million allocated for new research, science and technology initiatives over the next four years.

This new investment builds on our initiatives introduced last year - namely the Primary Growth Partnership which aims to transform great ideas into research, development, and ultimately products, jobs and growth. And the Domestic Agriculture Centre for Greenhouse Gas Research and the Global Research Alliance on agricultural greenhouse gases.

Thirdly, to ensure growth we must look at our greatest competitive advantage - water - or ‘liquid gold' as it was referred to in a recent KPMG report.

A huge amount of rain falls on our landmass compared with other food producing countries.

In fact we get three times as much as Australia on a per hectare basis.

But rain doesn't always fall in the right place at the right time.

The obvious answer to increased productivity is water storage and irrigation.

Up until now, the red-tape around projects has been so bad it has stopped progress.

This Government's first efforts have been to remove regulatory roadblocks and we are now well on track to advancing this agenda.

So far I have talked about the wider landscape, where we've come from, where we are at and some of the action the Government is taking.

I want to now focus on our future.

Our primary sector is hugely important to New Zealand, both in terms of export trade and image.

Our farmers, and the industries and professions that support them, including you vets, have a reputation for being innovative and sensitive to market opportunities and change.

We can no longer compete as a low cost producer, South America has seen to that.

Our future is as a producer of high quality, value-added product.

Our international customers are discerning.

They demand to know how the food and fibre they buy is farmed, and the environmental impact of our production systems.

New Zealand has a good story to tell - our pasture-based ‘free range' farming appeals.

New Zealand also has an ethical, principled and scientifically-based animal welfare system. It is highly regarded internationally.

We trade on this reputation.

I do become concerned when, the sheep and beef sector particularly is under some economic pressure, farmers shy away from calling the vet and miss the opportunity to get the right expertise.

I care for the way animals are farmed in this country and I link it to the fact that our overseas markets are watching every move we make in this area.

It is also why this Government allocated $8.2 million for animal welfare in this year's Budget, the largest increase in funding in the last decade.