Positive first year for ZAG fund
As it enters its second year, Zespri says the first year of the Zespri Innovation Fund (ZAG), has been “really positive”.
Growers still have until the end of October to sign up to the claim, but Kiwifruit Claim committee chairman John Cameron says the court has the power to extend that date.
The class action by kiwifruit growers is claiming $885m in compensation saying MAF (now MPI) failed to administer its biosecurity functions and obligations, which lead to the vine-killing disease Psa being allowed into the country.
Cameron says the case is based on new evidence linking the Psa DNA to pollen imported from China.
Cameron admits there had been a lot of opposition to the claim including Zespri and Kiwifruit Growers Inc. But he says a number of misconceptions were clarified at a public meeting in Te Puke, and the legal document from litigation funder LPF, over such issues as grower liability, has been strengthened to clarify liabilities.
He is adamant there is no risk to growers if the case is lost other than the initial fee of $500, $1000 or $1500 – depending on the size of a participant grower’s orchard.
“The more growers who sign up the better the case, but at the same time there is a risk for LPF and they need to be assured that all the plaintiffs don’t walk away.”
However, growers have the right to walk away as does LPF, although it considers there is a strong case and its intention is to support the owners through to a successful resolution. If LPF does walk away it will have to meet adverse costs as a result of the withdrawal, and growers can decide whether to continue the claim, funding themselves, or find another litigation funder.
LPF will post any security costs and if the claim is successful will take a 20-25% success fee.
Cameron says as of October 10, 25% of the Gold growers had signed up to the claim and a number of Green growers as well.
Cameron is “really annoyed” by the misconception that the action is anti-Zespri and anti-Government.
“That indicates to me that if the government does anything wrong it is expected everyone should shut up and say nothing,” he says.
“The claim is totally separate from the single desk or any other industry issues and even Prime Minister John Key had said growers were free to test the case.
“Like all of us we are accountable to the Government,” Cameron says. “If we are in breach of anything to do with the law... we are held accountable. From my perspective that’s what the issue is about.”
He says growers are out of pocket.
“Some people have moved on and I congratulate those who have the ability to do that; they probably have bank support.
“But for other growers if it doesn’t come right in the next two or three years they will be gone, notwithstanding the ones who have already gone.
“There’s accountability and there’s law and everyone has the right to their day in court.
“I think the government in all fairness has indicated that, John Key has indicated that… local MPs have indicated that, so it is a very healthy scenario.”
