10 Aug 2011

ACT urges RMA and ETS reforms to reduce price of milk

6:39 am on 10 August 2011

ACT supports a Select Committee inquiry into the price of milk, but says the priority should be getting rid of Government policies that drive up costs.

Agriculture spokesperson Hilary Calvert says reforming the Resource Management Act, scrapping the Emissions Trading Scheme and reducing Government spending, will be of more benefit to farmers and consumers than a select committee inquiry.

Select Committee chair Lianne Dalziel (Labour) says the aim will be to hold public hearings soon and report back to Parliament in early October, before it rises for the general election on 26 November.

She disputes the farmer view that the inquiry is premature and says she thinks the price of milk will be an election issue.

Federated Farmers thinks it is premature for Parliament to launch its own inquiry when Government officials are still reviewing the Raw Milk Regulations covering the supply of milk to independent processors and the way Fonterra sets its prices.