The Minister for Primary Industries is declining to launch an inquiry into Zespri while the kiwifruit marketing company is under Serious Fraud Office investigation.

Nathan Guy's statement to SunLive follows calls yesterday from ACT New Zealand Primary Industry Spokesperson Don Nicolson for a ministerial inquiry into Zespri over its conviction in China for customs issues.

'The Serious Fraud Office investigation into Zespri makes it even more important to wait before considering any further action,” Nathan told SunLive.

'The SFO are completely independent, and there would be no point launching an inquiry on top of theirs. I'm pleased that Zespri say they will cooperate fully with the SFO investigation. I await the outcome of this with interest,” says Nathan.

ACT made the call for the inquiry following what it says is Zespri's refusal to co-operate with the New Zealand Kiwifruit Growers Incorporated inquiry into the circumstances which led to Zespri being prosecuted in China.

Zespri's refusal to co-operate means the Minister must now act in the interests of NZ kiwifruit growers and finally agree to launch a ministerial inquiry, says Don.'NZKGI being unable to release a full report into the China prosecutions raises even more questions about their independence and ability to deliver much useful oversight, it also raises questions about the suitability of the legislation under which the kiwifruit industry operates,” he says.

In December, NZKGI informed its members that although part of its investigation was complete, another part relating to the circumstances that gave rise to the prosecutions, has been put on hold.

The reason was because the 'Serious Fraud Office investigation into Zespri Group Limited may disclose relevant information that will assist the NZKGI Inquiry; and Zespri has decided as a result of legal advice not to release any further information to the inquiry or, make further witnesses available to the inquiry, while the SFO investigates Zespri”.

KNZGI president Neil Trebilco says he is disappointed that inquiry can't be completed, but advice from NZKGI lawyers endorses that given to Zespri not to release any more information while the SFO inquiry is underway.

Neil says the other part of the NZKGI inquiry into how Zespri is performing now in the Chinese market is encouraging for growers.

The inquiry found that the prosecutions have had negligible impact on consumer perceptions of New Zealand Kiwifruit or the Zespri brand, he says.

'Zespri is amongst the two most recognised fruit brands in China. For example, Zespri has 200,000 followers on Weibo (Chinese social website) compared to 5000 for (another well know fruit brand) Sunkist.”

Neil says prior to last year, Zespri had not invested enough nor had enough oversight in the China market but it has now committed more resources there.

How long the SFO investigation will take and exactly what it is focused on is unknown he says.

A Zespri spokesperson told SunLive that 'as has been well canvassed over the past months, Zespri fully acknowledges that there have been historical issues in our China operations. Investigating and, where appropriate, rectifying these issues has been a priority for our board and senior management team, to ensure our business is appropriately set up for the future.

'Over the past year, we have implemented a number of important steps to remedy the issues of the past and build this important market for the kiwifruit industry. Significant progress has been made and this work is continuing.

'Zespri looks forward to continuing to work with NZKGI and the broader industry as we look to secure and embrace the opportunity that China offers the industry into the future.

Zespri says due to the ongoing Serious Fraud Office investigation, Zespri is unable to offer any further comment.

Don says Zespri cites the investigation by the Serious Fraud Office as the reason for its refusal to co-operate with NZKGI.

'This should be raising alarm bells within the Ministry because it could indicate that Zespri does not want to incriminate itself. Why else would it not want full disclosure of the facts?

'ACT has always said that because the government mandates the industry structure it has a responsibility to ensure that the industry always acts with absolute integrity as well as for the best interests of New Zealand kiwifruit growers. Years of reported industry shenanigans and now Zespri's refusal to co-operate with the industry and the industry's inability to hold it to account indicate that Government legislation is working against the industry and the growers not for them.

'With the NZKGI failing to deliver anything meaningful, the ball is clearly back in the Minister's court and he must at last agree to launch an immediate Ministerial inquiry not only into Zespri but the whole kiwifruit Industry, including the regulator Kiwifruit New Zealand and NZKGI as the recipient of the grower's levies.

'With kiwifruit being a major contributor to our economy there is a lot at stake for the growers themselves and the economy, the Government should have acted earlier and demanded better of an industry and the regulations that seem so deficient. Why it doesn't is of serious concern to ACT,” says Don.