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Issued April 2001
Thank you for all the expressions of sympathy during my recent illness. I am now well on the road to recovery. The time spent convalescing at home did afford me the opportunity to reflect on what a wonderful region I am lucky enough to represent.
The government is working hard to remedy decades of official indifference to the contribution and needs of our veterans. This month the Prime Minister and I announced a number of measures which recognise the special needs of veterans and their families, and which restore a sense of fairness. The announcements covered:
We are also consulting on the issue of further medallic recognition for veterans with service since World War Two. What we have done is present a co-ordinated package, which gives veterans the treatment and recognition they are entitled to.
Our position on agricultural industry deregulation has been consistent - we support deregulation if farmers support it and it's good for the country as a whole. It seems reasonably clear that the industry supports integrating processing and marketing, and Global Dairy Company is the most certain way of achieving this successfully. Working from that position, the Cabinet has decided to bypass the Commerce Commission and put the Global Co dairy merger proposal to farmers. Recognising the unique co-operative structure of the dairy industry and its current dysfunction, this action will mean that farmers decide how their industry will shape up in the 21st century. The merger will need to be approved by 75% of farmers in each of the merging companies. If this happens, legislation will then be introduced into Parliament, which will be subject to select committee scrutiny. This proposal will be widely debated and it should be clear that the government's intentions for the merger are that the interests of the public and farmers are protected, that competition is maintained, and that minority interests are addressed. The government has also ensured that a comprehensive regulatory package has been developed with the industry to guard against any potentially negative outcomes of the merger and that the same amount of competition will exist on the domestic market as there is now. With regard to this, New Zealand Dairy Foods will be divested from New Zealand Dairy Group to act as a competitor to Global Co on the domestic market. Once set up, Global Co will have to work under the Commerce Act, unlike the current Dairy Board. It will be a private company, and its success will come from the hard work of shareholders, employees and managers.
The government has given additional funding to the New Zealand Defence Force for targeted pay rises. I was pleased to get agreement from my Cabinet colleagues for $3 million of funding in the current financial year, and May's budget will include another $18.4 million. This has allowed the pay rises for more than 7000 Defence Force personnel to come into affect on May the first.
The increases have been targeted at lower ranks and identified trades with recruitment and retention problems. The most junior ranks such as Privates, Aircraftsman and Able Seaman have received increases of between 6 and 13 percent. The targeting follows a thorough assessment of Defence Force remuneration levels in the New Zealand employment context. It is part of a rational and systematic approach to setting priorities for Defence spending. This will be further demonstrated when the Government announces a series of decisions on future defence capabilities. Money will never be an overriding reason to attract people to a career in the armed forces. But it is important that we do what we can to recognise the professionalism and commitment of the men and women of our navy, airforce and army.
An Order prohibiting imports of trout has been extended until July 7th. The extension is to allow time for some aspects of the Conservation (Protection of Trout as a Non-commercial Species) Amendment Bill to be resolved. I was the original promoter of the bill, which has now been taken over by Environment Minister Marion Hobbs. The issues are difficult and the Order extension is to allow more time to resolve them. The Order prohibits the importation of trout flesh except for private consignments of less than 10 kg that are not intended for sale.
Te Mana returns to Solomon Islands The young sailors on Te Mana (pictured left) have now headed to the tropical climes of the Solomon Islands. The frigate is spending three weeks in the Solomons as part of New Zealand's ongoing support to the Solomon Islands peace process. New Zealand accepts that it has special obligations to our Pacific neighbours to assist in maintaining peace and in the Solomons we are working closely with Australia. Te Mana has relieved the Royal Australian Navy's ship HMAS Manoora and will maintain a naval presence in the region until May 14. Both the Te Mana and HMNZS Te Kaha were deployed to Solomon Islands last year and Te Kaha was used as a platform for peace talks.
It may be the end of the golden weather, but the tourism industry has struck gold this summer. Visitor arrival figures for March put the cap on a record summer for tourism in New Zealand. Visitor arrivals in March were up 16 % and almost one million visitors have arrived in New Zealand since November. It is important that we manage this impressive growth. Next month I expect to receive a copy of the draft New Zealand Tourism Strategy, which is an important first step towards mapping out a sustainable future for Tourism development in New Zealand.
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