Tit-for-tat kiwifruit claims

While kiwifruit marketer Zespri and postharvest company EastPack have denounced efforts to hold the government accountable for letting Psa into the country, claimants say they are getting the numbers.

The Kiwifruit Claim are responding to Zespri and EastPack statements by suggesting growers representing more than 20 percent of the NZ gold kiwifruit production now support their case.

The claim is a class action launched on Monday alleging negligence by the then Biosecurity NZ in allowing Psa into New Zealand.

Chairman of the claim's grower committee, John Cameron, says the speed with which growers were signing up to movement is 'staggering”.

'Signed legal documents are arriving faster than we expected and the number of inquiries from other growers has kept the committee and our advisors busy pretty much around the clock,” says John.

'We understand for some this is a big decision, and that trustees and company directors are all legally required to consider seriously and thoroughly whether being part of the action is in the best interests of their trust's beneficiaries or company.

'Because of this, growers and post-harvest operators have three more weeks to make a decision about whether or not to be involved.

'Bear in mind that once they have paid their initial contributions, they cannot be asked to pay any more for the proceedings so there is only upside from being part of the action.”

The Kiwifruit Claim will hold its first meeting for growers and post-harvest operators at 4.00 pm on Wednesday 8 October at the Te Puke Sport building.

They invite all kiwifruit growers to join the class action for a one-off fee of $500, $1000 or $1500 depending on the size of their orchard. Post-harvest operators may join the class action for a one-off fee of $10,000. Only growers and post-harvest operators that sign up to the action can benefit from any settlement or award of damages.

The claim is based on a number of facets, including a DNA study which identifies a shipment of material Biosecurity NZ allowed into the country in June 2009 was the source of Psa.

EastPack, the largest kiwifruit packhouse company in New Zealand, are refusing to join legal action against the Primary Industries Ministry.

The company released a statement yesterday stating it does not support the principle of the litigation, though board chairman Ray Sharp says growers affected by PSA have the right to make their own decision.

'The EastPack board position is that the action proposed has the potential to adversely affect Government and public attitudes that could prejudice the kiwifruit industry structure.

'This structure has huge value for our industry, its growth potential and NZ's export earnings growth.

'We recognise that Psa has been a huge financial and emotional cost, however the industry has a pathway forward. There is a strong future for the NZ kiwifruit industry.”

The Psa crisis prompted the merger between EastPack and rival Satara in March last year - a move that was highly profitable for both companies.

'Following our March 2013 merger with Satara, which was the biggest merger in New Zealand's kiwifruit history, it is clear that both residual companies are better off post-merger by around $3 million,” Ray adds.

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5 comments

Well it's a chance for a taxpayer funded payout??

Posted on 03-10-2014 11:11 | By Annalist

Us mug taxpayers on ordinary incomes will pay for all this through our taxes won't we? I wonder if I can claim against the government if some foreign flu gets into the country and makes me sick? I don't want even one cent of my hard earned and paid taxes to go to these growers and their lawyers.


I will be there,

Posted on 03-10-2014 11:58 | By Sambo Returns

Ready to relish this scrap. I am not a share holder in any Post Harvest or Zespri company, and not a orchard owner, and MR Ray Sharp what is profitable for EastPack is not always profitable for the grower. Why should it be the grower at the end of your profit chain that always suffers? If fault lies with lax bio security, then of course growers should be compensated.


wrong path

Posted on 03-10-2014 12:55 | By rotovend

wouldnt they be better off putting the money into protection of their own farms and new stock? Seems to me no-one had security on their farms like they do when something serious happens overseas like people on and off farm washed in entrance showers etc. A kiwifruit grower I know reckons greed caused the problem in the first place.


guilty or not guilty

Posted on 03-10-2014 13:13 | By peecee09

If it is found the Govt department is guilty then they should pay for their error. ZESPRI and EASTPACK too scared to rock the political boat? I think so. How gutless!


Kiwifruit Claim

Posted on 03-10-2014 17:28 | By Ontoit

Another group wanting a Government hand out.


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