Zespri chairman Peter McBride is speaking out against The Kiwifruit Claim – a move to seek compensation from the government for losses caused by the bacterial disease Psa-V.

The group is inviting kiwifruit growers to join a legal action seeking compensation from the government for alleged biosecurity lapses that allowed the pathogen into the country.

Zespri chairman Peter McBride.

In a statement released today Peter says the people behind The Kiwifruit Claim are seeking to sign up growers to a class action before they have the opportunity to properly consider the legal merits of the claim – and before a statement of claim has been filed.

The claim lacks transparency and fails to properly communicate the uncertainties surrounding the claim, says Peter.

The Kiwifruit Claim comes as the industry is well into recovery from Psa-V, which is estimated to have cost the industry $885 million.

Peter McBride says he's aware of the cost because his own orchard was struck by Psa-V.

'At its height it devastated people's incomes, their assets, their savings, their life's work and their self-esteem,” says Peter. 'It put immense pressure on people and families, on orchards and on the wider community.”

Orchard gate returns are now strong and orchard land prices have recovered to the point where they are now higher than pre-Psa levels, says Peter. Zespri is back on track to deliver on its plan to triple revenue to $3 billion by 2025.

He adds: 'The last thing the industry needs now is for the focus to be taken from growing our industry and placed on a divisive, drawn out and hugely expensive legal claim. I believe the industry will prosper by working with the government not against it.”

The kiwifruit industry is currently working with government on a number of initiatives such as the government industry agreements, research and development, market access, free trade agreements and Kiwifruit Vine Health – the organisation formed to research and fight Psa-V.

'Biosecurity is critical to our industry's success,” says Peter. 'I believe the best way to strengthen this system is to learn from the experience and to work in partnership with the government.

'That is why the kiwifruit industry was the first to sign up to a Government-industry agreement on biosecurity, and has an industry body set up to specifically focus on improving biosecurity outcomes.

'Ultimately it is not Zespri's place to tell growers whether they should sign up to this claim or not. That is entirely their decision.

'Growers at the very least deserve the people behind The Kiwifruit Claim to be completely transparent about the risks – political, legal, and financial – associated with this claim.

Otamarakau dairy farmer, kiwifruit and avocado grower John Cameron is chair of the committee fronting The Kiwifruit Claim and other committee members are Te Puke grower Bob Burt, Aongatete Managing Director Allan Dawson and Te Puke accountant Murray Gibson.

The claim's legal team includes Alan Galbraith QC, Matthew Dunning QC and Parker & Associates. The funder is LPF Group Limited.

Growers have until October 24 to sign up to the claim which is intended to hold Biosecurity NZ to account for allowing the disease to enter the country, to gain compensation for affected growers and to ensure such a breach of New Zealand bio-security never happens again.

Kiwifruit growers or post-harvest operators whose orchards or businesses were affected by Psa as at October 1, 2010, are eligible to be part of the action, even if they are no longer part of the industry.