6. Hon LIANNE DALZIEL (Labour—Christchurch East) Link to this
to the Prime Minister
Has he met with Fonterra in his capacity as Prime Minister in the last month; and if so, what undertakings, if any, did he give them?
Rt Hon JOHN KEY (Prime Minister) Link to this
Yes, I met with Fonterra on 8 August. The purpose of the meeting was to discuss Trading Among Farmers—TAF. Fonterra was advised that the Government remains committed to progressing legislation to allow Trading Among Farmers as long as various public policy concerns were addressed to the Government’s satisfaction. It was also made clear to Fonterra that this was unlikely to happen before the election.
Hon Lianne Dalziel Link to this
When the Prime Minister gave an undertaking to Fonterra that legislation to allow Trading Among Farmers was on schedule for early next year, did he say that that was subject to the completion of all of the inquiries; if so, why did he say “early next year”?
I cannot recall that particular part of it. In looking at the notes, I do know that the issue of inquiries was raised, because the Minister of Agriculture made it clear during the meeting with Fonterra that the Government would be supporting the Commerce Committee’s inquiry into milk pricing.
Hon Lianne Dalziel Link to this
Does he agree that the price of milk is central to changes to allow Trading Among Farmers; if so, why would he give an assurance to Fonterra that legislation would be scheduled for early next year, before current investigations into milk pricing are complete, or is the Government not serious about those inquiries?
Well, we are, but the issue, I think, is in relation to farm-gate pricing. The Ministers who were present at the meeting said to Fonterra that the Government wanted to ensure that there was a robust, dynamic, and enduring regime for the setting of Fonterra’s farm-gate milk price. That concern existed irrespective of Trading Among Farmers, and that was why the interdepartmental work was taking place.
Hon Lianne Dalziel Link to this
What did he say to convince Sir Henry van der Heyden that he had done the right thing in not trying to push Trading Among Farmers through in the lead-up to the election, and was it related to Fonterra’s decision to freeze the price of milk until after the election, or that the select committee inquiry would be stalled as long as possible?
Hon Damien O’Connor Link to this
Has he discussed Trading Among Farmers with NZX Chief Executive Officer, Mark Weldon; if so, what undertaking has he given him?
I do not recall any discussions with Mark Weldon about that, certainly not in the last year or so. Certainly in previous times I have said to him that it would be great to have Fonterra as a listed company, but that is my own view in the sense that I think Fonterra needs to raise more capital if it wants to be a global player of significance and size.
Hon Lianne Dalziel Link to this
I seek leave to table an email from Henry van der Heyden dated 12 August 2011 reporting on a good meeting with the Prime Minister, saying that for legislation for Trading Among Farmers early next year was on schedule, and that he was convinced the right thing was done in not trying to push it through in the lead-up to the election.
Mr SPEAKER