Debate on Crown Entities, Public Organisations,and State Enterprises — Animal Control Products Ltd

I wish to speak about two State-owned enterprises. One is a shining example, in my view, and the other needs to learn—I say that advisedly—how democracy works and who it is accountable to. The first is Landcorp. In previous years Landcorp lived under a very, very—

The CHAIRPERSON (H V Ross Robertson): I just say to the member that this debate is about Animal Control Products Ltd.

R DOUG WOOLERTON: Mr Chairman, I thought we were taking a basket of things: State-owned enterprises—

The CHAIRPERSON (H V Ross Robertson): I understand that that has been agreed to. Thank you.

💬 Jill Pettis: It’s a broad-ranging debate.

R DOUG WOOLERTON: I will stick pretty closely to the topic and not go off on to other things, but I want to mention these two different entities.

Under previous administrations Landcorp could not flourish as it should. It could not develop properties that were previously undeveloped under its care. It did not even know whether it could hold on to land that was in its care, because of something called the land bank, which was set aside for treaty settlements. So I am pleased to say that Land Corporation has certainty now. It has been told by the current administration that it is not for sale, and New Zealand First—which is against asset sales, especially sale of land to foreigners—can do nothing else but applaud that decision. We are worried that any change of administration may put Landcorp in danger again.

It is amazing what has happened to that organisation once certainty of ownership, or tenure, was established. Landcorp has flourished and is a huge success, showing the Government returns the likes of which, I understand, even Telecom could not match in its wildest dreams, and it is showing what in fact agriculture can do in this country. Not only is it doing that and returning money to the shareholder, the owner—which is the Government and the taxpayer of New Zealand—but it is also providing what I would call a Ruakura-like example of how farming can be in sometimes marginal situations. So, to a degree, it is acting like a research station. It is showing the way in many areas. Just for the benefit of my Green colleagues on my left, I point out that Landcorp is showing the way not only in areas of advancement, but also in developing what should be developed and putting aside what should not. That is the key to good farming. Landcorp is a prime example of what a good State-owned enterprise should be doing and is doing for the taxpayer, once it is given certainty of tenure.

The other thing I want to talk about is not so good, and that is AgriQuality New Zealand Ltd. We in New Zealand, especially in the farming sector, need good robust organisations that service the farming sector and, through the farming sector, the overseas markets we sell to. AgriQuality has a prime part to play in that, and I want to read to members—and it cannot be more eloquently put—from the report from the Primary Production Committee, of which I am a member.

I read from the report a couple of statements to show what we are talking about. The select committee stated: “We sought further information on how TB testing technical specifications or requirements have changed and a rationale for the restructuring, but were frustrated by the inferior quality of the written responses to our questions. It was only through subsequent questioning that we were able to find out that qualitatively, the Animal Health Board specifications have not changed dramatically”. I read now from the end of the report: “The company states, ‘While commercial activity may be an issue in some cases, these are in practice likely to be rare and such sensitivity would have to be very clearly demonstrated.’ ” That relates to the hedging that these people undertook when they were before the select committee.

This is an organisation that put out a glossy brochure—I call it a brochure but it is actually, technically, an annual report—full of pretty pictures of the executives, etc., etc.

I would like to take the opportunity to respond to a couple of matters that Mr Woolerton has raised. I accept the points the Primary Production Committee made in its report on AgriQuality, and I am sure it will do its very best to improve its performance next year.

I would like to raise an issue around Landcorp. It is, as the member said, an outstanding organisation, which is very proudly owned by the Government. But I would like to note on the record that the National Party has indicated it will sell Landcorp, along with some other key strategic assets, if it ever becomes the Government. I think we can be grateful that it will not get there for a long time, but it is important. Landcorp is an outstanding organisation. It has $585 million worth of shareholder assets, and the National Party will sell it to pay for its low-tax promises.

💬 Clayton Cosgrove: It will do what it did to kiwifruit!

Absolutely. Landcorp, as I say, has $585 million of value.

R Doug Woolerton: What are they saying about Kiwibank?

They will sell Kiwibank. They will sell every asset they can get their greedy hands on. Landcorp is a strategic asset for the rural industry and economy of this country. It is developing marginal land, and is doing so very successfully. When this Government came into power 4 years ago, Landcorp did not know where it was going because the previous National Government had said it would sell it, and Landcorp did not know what to do. We came into power, and we told Landcorp: “We will not sell you. Get on with the job of farming.” That is indeed what it has done. It has a 5-year strategic plan. It is 3 years through that plan and has outstanding results. It has returned to the shareholder year-on-year tens of millions of dollars.

💬 Hon Pete Hodgson: With an excellent chief executive.

Chris Kelly is outstanding. He has assisted Landcorp to develop the dairy industry side. It has a mixed portfolio of dairy, deer, and sheep farming operations on marginal land that is now high-quality, top producing land. Landcorp is also showing environmental leadership in the agricultural sector. It is setting aside land and protecting it—land that it considers is more valuable kept for biodiversity within its own farms. That is good leadership. In my own electorate of West Coast – Tasman, Landcorp is showing farmers the value in setting aside bush—as my own father does, and that will surprise some members—and it is showing that one can run a successful economic operation on marginal land and protect the environment. That is worthy of note.

💬 Hon Pete Hodgson: What will Don Brash do with it?

Don Brash will sell it. He will sell Landcorp, and knowing the National Party he will sell it for less than its $585 million. There are plenty of examples of where National fire-saled strategic assets.

💬 Craig McNair: To his mates!

Absolutely—to his mates, no doubt. Another key role that Landcorp plays in the agricultural sector is that of career opportunities. It is providing opportunities for young people to get into agriculture, work their way through the system, and become outstanding managers. That is something worthy of note. As the average age of farmers in this country increases, Landcorp provides an opportunity for keen, young people to come in, and we must praise them.

Just before I finish, I must point out that Landcorp has been farming Molesworth Station, the largest farm in this country, for many, many years, and doing so very successfully. There was some discussion and debate when we transferred that station back to the Department of Conservation. What will happen is that Landcorp will continue to manage that farm. It will have a management team—an oversight team—with the Department of Conservation to protect some of the marginal areas, the landscape areas of important protection. We had to do this because the risk of a National Party ever coming into Government again meant that it would sell Landcorp and Molesworth Station, as well. That is why we had to transfer it into well-protected public ownership, through the Department of Conservation—if we had not acted, the National Party would sell Landcorp and Molesworth Station.

Report noted.

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