New Zealand is a farming country, and that’s not going to change anytime soon.
Agriculture and the primary sector remain central to our international trade, with export revenue hitting a record 57.8 billion in the year to June 2023.
That number is expected to dip when the next figures are announced, as the tough economic climate is felt throughout all parts of society.
Looking to get the most out of both the primary sectors here and overseas is the Minister for Agriculture and Trade, Todd McClay.
As he heads to Fieldays this week, the Minister joins The Front Page to discuss the state of his key portfolios.
Follow The Front Page on iHeartRadio, Apple Podcasts, Spotify or wherever you get your podcasts.
You can read more about this and other stories in the New Zealand Herald, online at nzherald.co.nz, or tune in to news bulletins across the NZME network.
Host: Chelsea Daniels
Sound Engineer: Paddy Fox
Producer: Ethan Sills
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:06):
Kielder.
Speaker 2 (00:06):
I'm Chelsea Daniels and this is the Front Page, a
daily podcast.
Speaker 1 (00:10):
Presented by the New Zealand Herald.
Speaker 2 (00:17):
New Zealand is a farming country and that's not going
to change anytime soon. Agriculture and the primary sector remain
central to our international trade, with export revenue hitting a
record fifty seven point eight billion dollars in the year.
Speaker 1 (00:32):
To June twenty twenty three.
Speaker 2 (00:34):
That number is expected to dip when the next figures
are announced as the tough economic climate is.
Speaker 1 (00:39):
Felt throughout all parts of society.
Speaker 2 (00:44):
Looking to get the most out of both the primary
sectors here and overseas is the Minister for Agriculture and Trade,
Todd McLay.
Speaker 1 (00:53):
As he heads to field days this week.
Speaker 2 (00:55):
The Minister joins us today on the Front Page to discuss.
Speaker 1 (00:58):
The state of his key portfolios.
Speaker 2 (01:05):
Minister nearly seven months into the job now, and you've
been on a few international trips in that time. Hey,
when you talk trade over seas, how important are our
primary sectors in those discussions?
Speaker 3 (01:17):
Well, two things are really important.
Speaker 4 (01:19):
One primary sector is an extremely important and valuable part
of the New Zealand economy. And secondly, it's a really
big part of our trade profile. If you think of
it this way, eighty percent of every single plane that
leaves an airport in New Zealand and eighty percent of
every single ship that leaves every port in New Zealand
is full with the goods from the primary sector that
(01:42):
we are selling overseas, and that's its contribution. The second
thing I think in every single market I've been in
through the Middle East, Europe, and of course a lot
through Asia is the very good high reputation New Zealand
food and produce has has been safe, environmentally free, and
increasingly now people starting to be aware that, you know,
(02:04):
it is very good for climate change because of the
low carbon footprint that we have. And so we're just
going to make sure we keep talking those things up
and doing what we do best in New Zealand innovating
produce great things that the world's consumers want to buy
and are willing to pay more for.
Speaker 2 (02:18):
Speaking of climate change, I know the government's just announced
it will be keeping agriculture out of the New Zealand
emissions trading scheme and will establish a new Pastoral Sector
group to tackle biogenic methane.
Speaker 1 (02:32):
What's the reason for this?
Speaker 3 (02:34):
Well, two things.
Speaker 4 (02:34):
The first is we know that our food producers are
some of the most carbon efficient producers of food anywhere
in the world. And if what we do to meet
our climate change obligations is have them produce less or
close farms down, we know that that food we produce
will be picked up by some other country and they
(02:55):
will be you know, the climate will be worse off
because they are less client carbon friendly, and Zealand will
be poorer and we're just not willing to do that.
But we must meet our obligations internationally to reach net
zero by twenty fifty and we want to do that
with the pastoral sector, which is the farmers that have
dairy and meat. We want to do it in such
(03:17):
a way as we reduce missions without reducing production, which
predominantly is around new technologies that are available overseas and
yet to be here, and through investing with them in
more research and commercializing some of the things that are
in labs in New Zealand now that will allow us
to do that.
Speaker 2 (03:35):
Was the sector even a part of THEHS initiative to
begin with.
Speaker 4 (03:38):
Well, the previous Labor government put them in as far
as on the first of January next year. In twenty
twenty five, if agriculture hadn't agreed a price to tax
its climate or methane production, then the ETS would swing
into effect.
Speaker 3 (03:55):
And we just think that's just far too blunt a tool.
Speaker 4 (03:58):
You know, if New Zealand was one of the worst
carbon emitters when it came to agriculture, may be fair enough,
but we're not. We're one of the most carbon efficient.
And all it would do is push production to the
US or to Europe, where we know that for every
time they produce food they emit more carbon. That would
be worse for climate change. But I come back to
(04:18):
what I said earlier. We must meet our climate change obligations.
The government has committed to that. Agriculture has said they
will do their part, but we just have to do
it in a way that it doesn't shut them down.
Speaker 3 (04:29):
And I know that there will be many things that
they're up for around.
Speaker 4 (04:33):
Innovation and these new technologies that will help get us
there by twenty fifty.
Speaker 2 (04:37):
The sector is one of the biggest in our country
in terms of emitting meeting though right.
Speaker 4 (04:42):
Well, you know, agricultures is responsible about fifty percent of
New Zealand's emissions, but they are not responsible for fifty
percent of New Zealand's warming.
Speaker 5 (04:54):
Farmers don't dispute. They're responsible for nearly half of New
Zealand's greenhouse gas emissions.
Speaker 3 (05:00):
And not responsible is as for half the warming.
Speaker 5 (05:02):
A report commissioned by Federated Farmers Dairy and z and
Beef and Land New Zealand shows that since nineteen ninety
farming has been responsible for forty nine percent of total emissions,
but in that time the sector has been responsible for
just thirty seven percent of warming.
Speaker 4 (05:21):
And that's why before the election we committed to an
independent scientific review, an independent review of the science and
targets of methane agriculture against additional warming, and Cabinet has
made that decision already we're going through the terms of
reference and we're looking for New Zealand and the world's
best scientists in this area to conduct that independent review
(05:42):
for us.
Speaker 3 (05:43):
What they will do is give us.
Speaker 4 (05:44):
Exactly the target of what agriculture must do, what they
must reduce, or the amount they must reduce by. And
you're going to remember the last government put in legislation
a reduction of agricultural emissions of between twenty four and
forty seven percent by twenty fifty. But that's not a target,
that's a really wide band that sort of says, we
(06:05):
don't really know what the target should be, so we'll
chuck some stuff and legislation and we'll work it out
later on. Well, we've said we want the world in
New Zealand's best scientists to help us make that decision.
We will accept the decision, you know, the advice they
come up with, and then we will work with agriculture
to ensure that they do their fair shared to help
New Zealand meets climate reduction obligations, and we'll do so
(06:27):
in such a way without sending those jobs and that
production overseas.
Speaker 2 (06:30):
You said that the government is committing to meeting our
climate change obligations, like you've just told us as well.
But if farmers don't face consequences for their emissions, what
incentive do they have to reduce them.
Speaker 4 (06:40):
Well, one of the most important incentives is access to
foreign market. And I mentioned at the beginning of our
top eighty percent of what we know we sell overseas
as food and fiber, it comes from the primary sector.
We know that customers overseas, and certainly consumers are recly
interested in the environmental and climate change footprint, and although
(07:04):
we are one of the world's most carbon efficient food producers,
that's not enough.
Speaker 3 (07:08):
We need to do our fair share. And I know
my conversations with the.
Speaker 4 (07:12):
Processors who export as well as the farmers and their
farming leaders that represent them, they know that they have
to do this.
Speaker 3 (07:19):
They're up for the challenge.
Speaker 4 (07:21):
They're just saying that a tax on food production, which
is what the last government was proposing and driving through
the utets, would merely put up prices for New Zealand
consumers and our supermarkets, and would make us less productive
overseas and wouldn't do anything at all to help the
world reduce agricultural emissions.
Speaker 3 (07:42):
Well, we're being more responsible than that.
Speaker 4 (07:44):
We're saying that we're going to work with the sector
set up a pricing regime by twenty thirty, but make
sure that the New Zealand regulatory system and our investment
allows some of those solutions that are available around the
world but not yet in New Zealand there for farmers
to take up.
Speaker 6 (08:02):
We need to embrace the technology and the tools that
many other countries have. You know, there is technology that
exists today as a methane inhibitor that will reduce emissions
by thirty percent. It's available in thirty five other countries
and it's not yet available here in Zealand. We need
to give our farmers the tools and the technology to
be able.
Speaker 3 (08:19):
To do that.
Speaker 2 (08:25):
The last government didn't seem to get along too well
with the farming community at all. Hey, but Groundswell seems
to be one of the few groups not protesting the
government this time. What are you doing differently to work
with the farming community. Do you reckon that differs from
the last government?
Speaker 4 (08:41):
Well, I think that most of the groups that represent
farmers from you know, directly on the farm to those
that have officers in Wellington, the levy bodies, all they
asked was the last government was to work constructively, you know,
Labor set up a hare Walker ECONO, a partnership and
they said it was the first true partnership with government
(09:02):
of farmers anywhere in the world to find solutions together
to reduce farm missions and scratching. Now, well we are
and the reason for that is that the sector work
for two or three years, came up with those solutions
and the government said, no, we don't like it. The
Labor government said we don't like it, and they destroyed
any semblance of cooperation or good faith that existed. What
(09:26):
that shows me though, is that the sector is willing
to take on responsibility for itself and we are disbanding
here Walker Econoa because it's failed. It didn't achieve what
Labour said it would and I'm yet to see anybody
that has any faith it. In fact, even James Shaw
that was a member of the last government. Now if
Parliament said it didn't achieve the things that needed to,
it didn't work out. In its place, we have a
(09:47):
new Pastoral Sector group that will be representatives at a
very high level of only those farmers involved with the dairy, sheep,
beef and there because that's where the methane shall and
we will work constructively and focus with them on these solutions.
But the sector knows and it has already said it
must meet its obligations. Are They're up for that, but
(10:08):
they need a government that will work with them. Merely
putting a tax on them that puts up the price
of food and sends jobs and production over seas won't
achieve that.
Speaker 3 (10:16):
It'll just make New Zealand poorer.
Speaker 2 (10:18):
How does it put a higher price on food though
being more environmentally friendly. Do you think other nations, perhaps
in exporting, wouldn't choose New Zealand because it's not doing
enough for the environment.
Speaker 4 (10:30):
Well, no, it makes food more expensive for New Zealand
consumers and makes us less competitive over seas when we export.
So think of it this way. It's a bit like
that ut tax. The last government put a tax on utes.
If people want to buy them and drive them, or
a farmer or a tradee there is nothing else they
can buy because there wasn't electorates. All they have to
(10:50):
do is pay a tax, pass that on to the
consumers or the people they're providing services to, because they're
not able to alter their behavior. In the case of
the last gouvernm with agriculture by saying they were putting
a price on agriculture, if there was nothing they could
do other than farm less and produce less food. Then
merely it puts up the price of food for New Zealanders,
(11:12):
or we.
Speaker 3 (11:13):
Are less competitive overseas.
Speaker 4 (11:14):
Are here blessed to sell And as I said earlier,
because we are so carbon efficient, it means the Americans
or the Europeans would produce that food that world needs
and with a greater carbon footprint, which is worse for
climate change. Well, we're not willing to do that. But
I come back to what I have said each time
and repeat. We must meet our obligations. The sect there
(11:34):
says they're up to that. We're going to work with
them on this on methane and use these new technologies
and make sure the tools are available to them so
that we can get to the target of net zero
on behalf of New Zealand by twenty fifty.
Speaker 2 (11:57):
And one of the arguments the previous government used around
the emissions trading scheme and other policies was that the
New Zealand trades on its clean green image and farming
needs to reflect that.
Speaker 1 (12:08):
Right Do you agree with that perspective?
Speaker 4 (12:11):
Yes, I do, And we start from a very good
point in as far as we are one of the
world's most carbon efficient food producers. But we can't merely
say we're better than the rest of you. Therefore we're
not going to do anything. We have obligations and we
have to do our fear share.
Speaker 3 (12:27):
That's in it.
Speaker 2 (12:28):
It's just not in the scheme of the ets, right,
you're going to make them do other things. Does the
clean green image come up at all when you talk
with other countries.
Speaker 1 (12:36):
Has that resonated overseas well?
Speaker 4 (12:38):
Certainly consumers around the world recognizes that New Zealand produces
very high quality save food and they recognize also that
we have high environmental standards. We need to keep enforcing
those and reinforcing them. But we also have to be
focused on the outcome, what we're trying to achieve, rather
than just a rule that often won't achieve what has
been suggested or just add cost. But we are thought
(13:01):
of very highly internationally. It is a reputation that has
developed and built upon by successive governments from the work
the sector.
Speaker 3 (13:10):
And farmers do themselves.
Speaker 4 (13:12):
We need to support that with good regulation and enhance it,
but not merely put in place rules that would create
attax and not achieve the things we need to.
Speaker 2 (13:20):
And if we go back overseas and talk trade for
a minute, Minister, how's the mission to woo India going?
Speaker 4 (13:26):
Well, it's very you look at We're in a really
really good space, I think, but there's a lot of
work to be done. It's fair to say over the
last six to seven years, the relationship with India was underdone.
Prime Minister Luxeen has been very clear we want to
invest in that relationship and it is a strategic priority
for the government. I've been up there very soon after
the government's formed last year.
Speaker 3 (13:47):
Deputy Prime Minister Peters has paid a visit.
Speaker 4 (13:49):
When I was there, I met with my counterpart, the
Commerce Minister, and I invited him to send a delegation
of his high level officials to New Zealand to meet
with my trailer officials and talk about trade more broadly,
but also focus on some of the barriers that exist
that make it hard for New Zealanders to export to
India or Indians to New Zealand. That visit happened about
(14:11):
a month ago. It was very constructive. Since we've come
to government, the log trade has recommenced because India had
restricted logs from New Zealand. We've been able to find
a few products, including mangos, that can come down in
this direction. And the Prime Minister has said he will
visit India within a year of becoming Prime minister, and
that is scheduled with a big delegation before the end
(14:32):
of this year. So we're making important steps forward. The
end goal is a high quality trade agreement with India.
But before we can get to the stage of talking
trade and negotiating, we have to strengthen the relationship and
get ready for a ways that Kiwis and Indians can
buy and sell more from each other.
Speaker 2 (14:52):
If you had a genie pop out of a bottle
and you could sign a trade agreement with any country
in the world that you're working on now, who's on
the top of the list.
Speaker 4 (15:01):
It would be India because they're one point four billion
consumers who are increasing in wealth. They're starting to trade
with the world, buy and sell, and that we know that.
You know that there is real opportunity for Kiwi exporters
of goods and of services.
Speaker 3 (15:17):
In that market.
Speaker 4 (15:19):
But the other area that I think would be very
important for me is rather than a trade deal with
one countries, I'd want to continue to bring groups of
countries together to have common rules through trade that give
certainty and opens up supply chains to many more New
Zealand exporters. You know, we don't have a trade deal
with the US, although since they pulled out of the
(15:41):
TPP seven years ago, our trade with them has grown
remarkably well. But we did the last week in Singapore
and I was there sign a deal with fourteen Indo
Pacific countries, including India and the US, which looks area
to cooperate and gives greater certainty for trade and particularly
investment in the green economy. That's a pretty important step
(16:03):
forward for a small country like New Zealand. We're going
to keeping out on the world stage hustling for a
better deal for keywags. It's something the prime minister election
is pushing the Deputy Prime Minister and me as Trade
Minister to do every single.
Speaker 7 (16:16):
Day, because if it's splitzing growth rates, the fast is
doing economy of the world. A country of one point
four billion people who are upwardly mobile, several hundred million
people coming up into the middle plus every decade. It's
a huge market which cannot be ignored. In fact, it's
a little surprise that it has taken New Zealand so
(16:37):
long to come to the party.
Speaker 2 (16:41):
And you're off to Field Days obviously a massive event
for the sector on everyone's calendars every year.
Speaker 1 (16:47):
I what are you looking most forward to?
Speaker 2 (16:49):
What do you reckon the reception is to you being
there will be and any announcements coming out.
Speaker 4 (16:54):
Yeah, my first Field Days as Agriculture Minister. Although I've
been there previously spoke and of course there's an MP
many times before. It's a real celebration of the very
best at new rural New Zealand has to offer. I
have nothing but admiration for New Zealand farmers. You know,
(17:14):
they innovate, they work very very hard every day, they
get up so early, and they are helping us rebuild
the economy and pay off a lot of the debt
that's been run up. But there will be a number
of announcements as we go through the week. The Prime
Minister will be there Wednesday, which is our full day,
and I tell you, aside from our announcements, what he
and I are both most looking forward to is being
(17:35):
able to get out and talk to farmers directly about
the things that they're doing well, the challenges that they
have and what more they want from the government.
Speaker 1 (17:42):
And any hints on what those announcements will entail.
Speaker 4 (17:45):
Well, some of them are going to be around support
on farm and new ways of doing things. Nothing overly significant,
but I do have announcements towards the end of the
week around forestry. There's a forestry hub there and it's
what we're doing in agriculture, given certainty, getting some of
the rules that aren't working just costs, creating costs out
(18:06):
of the way and setting up a framework so foresters
as much as farmers have a clear understanding of what
their obligations are and then can make decisions for themselves
how to best meet them. You know, where the cost
of a regulation is greater than the benefit of the outcome,
that's red tape, and the government is just not going
to do that. But we're not saying we shouldn't have rules.
(18:27):
We're saying we want better rules. We're not saying that
we only want you know, fewer, we want ones that
really really work. And that's the same whether it's in
any part of the business community, agriculture, forestry, or actually
mom and dad at home. You know, they know they
have to be rules on regulations. They want to be
smarter and better. They don't just want them to be
expensive and burdensome. And that's everything that David Seymour that
(18:51):
our Prime Minister Christoph Luxan and Deputy Prime Minister Winston
Peters and.
Speaker 3 (18:56):
I are focused on geling along then very much so.
Speaker 4 (19:00):
Tell you I've been in three governments now and this
is a privilege and of pleasure to be a member
of the focus around the Cabinet table on getting things
done for New Zealanders and making their lives easier by
having less government, but where they do need government that
we work harder for them is a pleasure.
Speaker 2 (19:17):
You can tell us the Gossip of tape. Thanks minister,
You're so welcome. That's it for this episode of the
Front Page. You can read more about today's stories and
extensive news coverage at enzet Herald dot co dot z.
The Front Page is produced by Ethan Sells with sound
(19:38):
engineer Patty Fox.
Speaker 1 (19:40):
I'm Chelsea Daniels.
Speaker 2 (19:42):
Subscribe to The Front Page on iHeartRadio or wherever you
get your podcasts, and tune in tomorrow for another look
behind the headlines.
Kielder.
Speaker 2 (00:06):
I'm Chelsea Daniels and this is the Front Page, a
daily podcast.
Speaker 1 (00:10):
Presented by the New Zealand Herald.
Speaker 2 (00:17):
New Zealand is a farming country and that's not going
to change anytime soon. Agriculture and the primary sector remain
central to our international trade, with export revenue hitting a
record fifty seven point eight billion dollars in the year.
Speaker 1 (00:32):
To June twenty twenty three.
Speaker 2 (00:34):
That number is expected to dip when the next figures
are announced as the tough economic climate is.
Speaker 1 (00:39):
Felt throughout all parts of society.
Speaker 2 (00:44):
Looking to get the most out of both the primary
sectors here and overseas is the Minister for Agriculture and Trade,
Todd McLay.
Speaker 1 (00:53):
As he heads to field days this week.
Speaker 2 (00:55):
The Minister joins us today on the Front Page to discuss.
Speaker 1 (00:58):
The state of his key portfolios.
Speaker 2 (01:05):
Minister nearly seven months into the job now, and you've
been on a few international trips in that time. Hey,
when you talk trade over seas, how important are our
primary sectors in those discussions?
Speaker 3 (01:17):
Well, two things are really important.
Speaker 4 (01:19):
One primary sector is an extremely important and valuable part
of the New Zealand economy. And secondly, it's a really
big part of our trade profile. If you think of
it this way, eighty percent of every single plane that
leaves an airport in New Zealand and eighty percent of
every single ship that leaves every port in New Zealand
is full with the goods from the primary sector that
(01:42):
we are selling overseas, and that's its contribution. The second
thing I think in every single market I've been in
through the Middle East, Europe, and of course a lot
through Asia is the very good high reputation New Zealand
food and produce has has been safe, environmentally free, and
increasingly now people starting to be aware that, you know,
(02:04):
it is very good for climate change because of the
low carbon footprint that we have. And so we're just
going to make sure we keep talking those things up
and doing what we do best in New Zealand innovating
produce great things that the world's consumers want to buy
and are willing to pay more for.
Speaker 2 (02:18):
Speaking of climate change, I know the government's just announced
it will be keeping agriculture out of the New Zealand
emissions trading scheme and will establish a new Pastoral Sector
group to tackle biogenic methane.
Speaker 1 (02:32):
What's the reason for this?
Speaker 3 (02:34):
Well, two things.
Speaker 4 (02:34):
The first is we know that our food producers are
some of the most carbon efficient producers of food anywhere
in the world. And if what we do to meet
our climate change obligations is have them produce less or
close farms down, we know that that food we produce
will be picked up by some other country and they
(02:55):
will be you know, the climate will be worse off
because they are less client carbon friendly, and Zealand will
be poorer and we're just not willing to do that.
But we must meet our obligations internationally to reach net
zero by twenty fifty and we want to do that
with the pastoral sector, which is the farmers that have
dairy and meat. We want to do it in such
(03:17):
a way as we reduce missions without reducing production, which
predominantly is around new technologies that are available overseas and
yet to be here, and through investing with them in
more research and commercializing some of the things that are
in labs in New Zealand now that will allow us
to do that.
Speaker 2 (03:35):
Was the sector even a part of THEHS initiative to
begin with.
Speaker 4 (03:38):
Well, the previous Labor government put them in as far
as on the first of January next year. In twenty
twenty five, if agriculture hadn't agreed a price to tax
its climate or methane production, then the ETS would swing
into effect.
Speaker 3 (03:55):
And we just think that's just far too blunt a tool.
Speaker 4 (03:58):
You know, if New Zealand was one of the worst
carbon emitters when it came to agriculture, may be fair enough,
but we're not. We're one of the most carbon efficient.
And all it would do is push production to the
US or to Europe, where we know that for every
time they produce food they emit more carbon. That would
be worse for climate change. But I come back to
(04:18):
what I said earlier. We must meet our climate change obligations.
The government has committed to that. Agriculture has said they
will do their part, but we just have to do
it in a way that it doesn't shut them down.
Speaker 3 (04:29):
And I know that there will be many things that
they're up for around.
Speaker 4 (04:33):
Innovation and these new technologies that will help get us
there by twenty fifty.
Speaker 2 (04:37):
The sector is one of the biggest in our country
in terms of emitting meeting though right.
Speaker 4 (04:42):
Well, you know, agricultures is responsible about fifty percent of
New Zealand's emissions, but they are not responsible for fifty
percent of New Zealand's warming.
Speaker 5 (04:54):
Farmers don't dispute. They're responsible for nearly half of New
Zealand's greenhouse gas emissions.
Speaker 3 (05:00):
And not responsible is as for half the warming.
Speaker 5 (05:02):
A report commissioned by Federated Farmers Dairy and z and
Beef and Land New Zealand shows that since nineteen ninety
farming has been responsible for forty nine percent of total emissions,
but in that time the sector has been responsible for
just thirty seven percent of warming.
Speaker 4 (05:21):
And that's why before the election we committed to an
independent scientific review, an independent review of the science and
targets of methane agriculture against additional warming, and Cabinet has
made that decision already we're going through the terms of
reference and we're looking for New Zealand and the world's
best scientists in this area to conduct that independent review
(05:42):
for us.
Speaker 3 (05:43):
What they will do is give us.
Speaker 4 (05:44):
Exactly the target of what agriculture must do, what they
must reduce, or the amount they must reduce by. And
you're going to remember the last government put in legislation
a reduction of agricultural emissions of between twenty four and
forty seven percent by twenty fifty. But that's not a target,
that's a really wide band that sort of says, we
(06:05):
don't really know what the target should be, so we'll
chuck some stuff and legislation and we'll work it out
later on. Well, we've said we want the world in
New Zealand's best scientists to help us make that decision.
We will accept the decision, you know, the advice they
come up with, and then we will work with agriculture
to ensure that they do their fair shared to help
New Zealand meets climate reduction obligations, and we'll do so
(06:27):
in such a way without sending those jobs and that
production overseas.
Speaker 2 (06:30):
You said that the government is committing to meeting our
climate change obligations, like you've just told us as well.
But if farmers don't face consequences for their emissions, what
incentive do they have to reduce them.
Speaker 4 (06:40):
Well, one of the most important incentives is access to
foreign market. And I mentioned at the beginning of our
top eighty percent of what we know we sell overseas
as food and fiber, it comes from the primary sector.
We know that customers overseas, and certainly consumers are recly
interested in the environmental and climate change footprint, and although
(07:04):
we are one of the world's most carbon efficient food producers,
that's not enough.
Speaker 3 (07:08):
We need to do our fair share. And I know
my conversations with the.
Speaker 4 (07:12):
Processors who export as well as the farmers and their
farming leaders that represent them, they know that they have
to do this.
Speaker 3 (07:19):
They're up for the challenge.
Speaker 4 (07:21):
They're just saying that a tax on food production, which
is what the last government was proposing and driving through
the utets, would merely put up prices for New Zealand
consumers and our supermarkets, and would make us less productive
overseas and wouldn't do anything at all to help the
world reduce agricultural emissions.
Speaker 3 (07:42):
Well, we're being more responsible than that.
Speaker 4 (07:44):
We're saying that we're going to work with the sector
set up a pricing regime by twenty thirty, but make
sure that the New Zealand regulatory system and our investment
allows some of those solutions that are available around the
world but not yet in New Zealand there for farmers
to take up.
Speaker 6 (08:02):
We need to embrace the technology and the tools that
many other countries have. You know, there is technology that
exists today as a methane inhibitor that will reduce emissions
by thirty percent. It's available in thirty five other countries
and it's not yet available here in Zealand. We need
to give our farmers the tools and the technology to
be able.
Speaker 3 (08:19):
To do that.
Speaker 2 (08:25):
The last government didn't seem to get along too well
with the farming community at all. Hey, but Groundswell seems
to be one of the few groups not protesting the
government this time. What are you doing differently to work
with the farming community. Do you reckon that differs from
the last government?
Speaker 4 (08:41):
Well, I think that most of the groups that represent
farmers from you know, directly on the farm to those
that have officers in Wellington, the levy bodies, all they
asked was the last government was to work constructively, you know,
Labor set up a hare Walker ECONO, a partnership and
they said it was the first true partnership with government
(09:02):
of farmers anywhere in the world to find solutions together
to reduce farm missions and scratching. Now, well we are
and the reason for that is that the sector work
for two or three years, came up with those solutions
and the government said, no, we don't like it. The
Labor government said we don't like it, and they destroyed
any semblance of cooperation or good faith that existed. What
(09:26):
that shows me though, is that the sector is willing
to take on responsibility for itself and we are disbanding
here Walker Econoa because it's failed. It didn't achieve what
Labour said it would and I'm yet to see anybody
that has any faith it. In fact, even James Shaw
that was a member of the last government. Now if
Parliament said it didn't achieve the things that needed to,
it didn't work out. In its place, we have a
(09:47):
new Pastoral Sector group that will be representatives at a
very high level of only those farmers involved with the dairy, sheep,
beef and there because that's where the methane shall and
we will work constructively and focus with them on these solutions.
But the sector knows and it has already said it
must meet its obligations. Are They're up for that, but
(10:08):
they need a government that will work with them. Merely
putting a tax on them that puts up the price
of food and sends jobs and production over seas won't
achieve that.
Speaker 3 (10:16):
It'll just make New Zealand poorer.
Speaker 2 (10:18):
How does it put a higher price on food though
being more environmentally friendly. Do you think other nations, perhaps
in exporting, wouldn't choose New Zealand because it's not doing
enough for the environment.
Speaker 4 (10:30):
Well, no, it makes food more expensive for New Zealand
consumers and makes us less competitive over seas when we export.
So think of it this way. It's a bit like
that ut tax. The last government put a tax on utes.
If people want to buy them and drive them, or
a farmer or a tradee there is nothing else they
can buy because there wasn't electorates. All they have to
(10:50):
do is pay a tax, pass that on to the
consumers or the people they're providing services to, because they're
not able to alter their behavior. In the case of
the last gouvernm with agriculture by saying they were putting
a price on agriculture, if there was nothing they could
do other than farm less and produce less food. Then
merely it puts up the price of food for New Zealanders,
(11:12):
or we.
Speaker 3 (11:13):
Are less competitive overseas.
Speaker 4 (11:14):
Are here blessed to sell And as I said earlier,
because we are so carbon efficient, it means the Americans
or the Europeans would produce that food that world needs
and with a greater carbon footprint, which is worse for
climate change. Well, we're not willing to do that. But
I come back to what I have said each time
and repeat. We must meet our obligations. The sect there
(11:34):
says they're up to that. We're going to work with
them on this on methane and use these new technologies
and make sure the tools are available to them so
that we can get to the target of net zero
on behalf of New Zealand by twenty fifty.
Speaker 2 (11:57):
And one of the arguments the previous government used around
the emissions trading scheme and other policies was that the
New Zealand trades on its clean green image and farming
needs to reflect that.
Speaker 1 (12:08):
Right Do you agree with that perspective?
Speaker 4 (12:11):
Yes, I do, And we start from a very good
point in as far as we are one of the
world's most carbon efficient food producers. But we can't merely
say we're better than the rest of you. Therefore we're
not going to do anything. We have obligations and we
have to do our fear share.
Speaker 3 (12:27):
That's in it.
Speaker 2 (12:28):
It's just not in the scheme of the ets, right,
you're going to make them do other things. Does the
clean green image come up at all when you talk
with other countries.
Speaker 1 (12:36):
Has that resonated overseas well?
Speaker 4 (12:38):
Certainly consumers around the world recognizes that New Zealand produces
very high quality save food and they recognize also that
we have high environmental standards. We need to keep enforcing
those and reinforcing them. But we also have to be
focused on the outcome, what we're trying to achieve, rather
than just a rule that often won't achieve what has
been suggested or just add cost. But we are thought
(13:01):
of very highly internationally. It is a reputation that has
developed and built upon by successive governments from the work
the sector.
Speaker 3 (13:10):
And farmers do themselves.
Speaker 4 (13:12):
We need to support that with good regulation and enhance it,
but not merely put in place rules that would create
attax and not achieve the things we need to.
Speaker 2 (13:20):
And if we go back overseas and talk trade for
a minute, Minister, how's the mission to woo India going?
Speaker 4 (13:26):
Well, it's very you look at We're in a really
really good space, I think, but there's a lot of
work to be done. It's fair to say over the
last six to seven years, the relationship with India was underdone.
Prime Minister Luxeen has been very clear we want to
invest in that relationship and it is a strategic priority
for the government. I've been up there very soon after
the government's formed last year.
Speaker 3 (13:47):
Deputy Prime Minister Peters has paid a visit.
Speaker 4 (13:49):
When I was there, I met with my counterpart, the
Commerce Minister, and I invited him to send a delegation
of his high level officials to New Zealand to meet
with my trailer officials and talk about trade more broadly,
but also focus on some of the barriers that exist
that make it hard for New Zealanders to export to
India or Indians to New Zealand. That visit happened about
(14:11):
a month ago. It was very constructive. Since we've come
to government, the log trade has recommenced because India had
restricted logs from New Zealand. We've been able to find
a few products, including mangos, that can come down in
this direction. And the Prime Minister has said he will
visit India within a year of becoming Prime minister, and
that is scheduled with a big delegation before the end
(14:32):
of this year. So we're making important steps forward. The
end goal is a high quality trade agreement with India.
But before we can get to the stage of talking
trade and negotiating, we have to strengthen the relationship and
get ready for a ways that Kiwis and Indians can
buy and sell more from each other.
Speaker 2 (14:52):
If you had a genie pop out of a bottle
and you could sign a trade agreement with any country
in the world that you're working on now, who's on
the top of the list.
Speaker 4 (15:01):
It would be India because they're one point four billion
consumers who are increasing in wealth. They're starting to trade
with the world, buy and sell, and that we know that.
You know that there is real opportunity for Kiwi exporters
of goods and of services.
Speaker 3 (15:17):
In that market.
Speaker 4 (15:19):
But the other area that I think would be very
important for me is rather than a trade deal with
one countries, I'd want to continue to bring groups of
countries together to have common rules through trade that give
certainty and opens up supply chains to many more New
Zealand exporters. You know, we don't have a trade deal
with the US, although since they pulled out of the
(15:41):
TPP seven years ago, our trade with them has grown
remarkably well. But we did the last week in Singapore
and I was there sign a deal with fourteen Indo
Pacific countries, including India and the US, which looks area
to cooperate and gives greater certainty for trade and particularly
investment in the green economy. That's a pretty important step
(16:03):
forward for a small country like New Zealand. We're going
to keeping out on the world stage hustling for a
better deal for keywags. It's something the prime minister election
is pushing the Deputy Prime Minister and me as Trade
Minister to do every single.
Speaker 7 (16:16):
Day, because if it's splitzing growth rates, the fast is
doing economy of the world. A country of one point
four billion people who are upwardly mobile, several hundred million
people coming up into the middle plus every decade. It's
a huge market which cannot be ignored. In fact, it's
a little surprise that it has taken New Zealand so
(16:37):
long to come to the party.
Speaker 2 (16:41):
And you're off to Field Days obviously a massive event
for the sector on everyone's calendars every year.
Speaker 1 (16:47):
I what are you looking most forward to?
Speaker 2 (16:49):
What do you reckon the reception is to you being
there will be and any announcements coming out.
Speaker 4 (16:54):
Yeah, my first Field Days as Agriculture Minister. Although I've
been there previously spoke and of course there's an MP
many times before. It's a real celebration of the very
best at new rural New Zealand has to offer. I
have nothing but admiration for New Zealand farmers. You know,
(17:14):
they innovate, they work very very hard every day, they
get up so early, and they are helping us rebuild
the economy and pay off a lot of the debt
that's been run up. But there will be a number
of announcements as we go through the week. The Prime
Minister will be there Wednesday, which is our full day,
and I tell you, aside from our announcements, what he
and I are both most looking forward to is being
(17:35):
able to get out and talk to farmers directly about
the things that they're doing well, the challenges that they
have and what more they want from the government.
Speaker 1 (17:42):
And any hints on what those announcements will entail.
Speaker 4 (17:45):
Well, some of them are going to be around support
on farm and new ways of doing things. Nothing overly significant,
but I do have announcements towards the end of the
week around forestry. There's a forestry hub there and it's
what we're doing in agriculture, given certainty, getting some of
the rules that aren't working just costs, creating costs out
(18:06):
of the way and setting up a framework so foresters
as much as farmers have a clear understanding of what
their obligations are and then can make decisions for themselves
how to best meet them. You know, where the cost
of a regulation is greater than the benefit of the outcome,
that's red tape, and the government is just not going
to do that. But we're not saying we shouldn't have rules.
(18:27):
We're saying we want better rules. We're not saying that
we only want you know, fewer, we want ones that
really really work. And that's the same whether it's in
any part of the business community, agriculture, forestry, or actually
mom and dad at home. You know, they know they
have to be rules on regulations. They want to be
smarter and better. They don't just want them to be
expensive and burdensome. And that's everything that David Seymour that
(18:51):
our Prime Minister Christoph Luxan and Deputy Prime Minister Winston
Peters and.
Speaker 3 (18:56):
I are focused on geling along then very much so.
Speaker 4 (19:00):
Tell you I've been in three governments now and this
is a privilege and of pleasure to be a member
of the focus around the Cabinet table on getting things
done for New Zealanders and making their lives easier by
having less government, but where they do need government that
we work harder for them is a pleasure.
Speaker 2 (19:17):
You can tell us the Gossip of tape. Thanks minister,
You're so welcome. That's it for this episode of the
Front Page. You can read more about today's stories and
extensive news coverage at enzet Herald dot co dot z.
The Front Page is produced by Ethan Sells with sound
(19:38):
engineer Patty Fox.
Speaker 1 (19:40):
I'm Chelsea Daniels.
Speaker 2 (19:42):
Subscribe to The Front Page on iHeartRadio or wherever you
get your podcasts, and tune in tomorrow for another look
behind the headlines.
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