Post-harvest operators oppose Kiwifruit Claim

The signatories says they represent 75%of the New Zealand kiwifruit postharvest industry and together have over $450 million invested in orchards and post-harvest infrastructure and employ 8500 people.

The Kiwifruit Claim is a class action against MPI claiming $885m compensation for the 2010 Psa incursion.

"Collectively, along with Zespri and New Zealand Kiwifruit Growers Inc. we do not support "The Kiwifruit Claim" and urge all growers to think carefully about the long-term impact on their business and their industry when making their choice on whether or not to join "The Claim"," the post-harvest operators say in the open letter to John Key.

"The core reasons we do not support "The Claim" are:

• The kiwifruit industry has had a very close working relationship with successive governments. This close relationship, which is underpinned by the Single Point of Entry industry structure, is of great benefit not only to the kiwifruit industry but to the wider New Zealand economy. We believe the approach taken by the group behind "The Claim" puts this relationship at risk for us all.

• In 2012 a number of post-harvest operators sought and received advice from the same lawyers involved in this claim that any legal action on this matter would be unlikely to succeed. In our opinion, as there appears to be nothing new in what those promoting the "The Claim" are presenting, "The Claim" appears to have no sound legal basis.

• The industry as a whole has not received anywhere near the appropriate information to make an informed financial decision before signing up. This is a grossly irresponsible approach taken by the group behind "The Claim".
It is also unclear who is behind "The Claim" and what their motivations are. We question why a litigation fund with international interests has taken such a high interest in our industry.

"A lot of our growers have gone through both financial and emotional turmoil since Psa was discovered in New Zealand four years ago. We recognise the pressure that has been put on growers, their families, and our community over the past four years. We understand that some growers will want to seek compensation through the legal system. We respect that it is their right to do so.

"However, we believe attacking the Government through a one-off speculative litigation case is not the right approach to securing our collective future. We now have a clear pathway forward with the more Psa resistant G3 variety, and the industry is on a strong growth path. We believe our focus should be on the future, not the past."

The letter says while the signatories do not support "The Claim" they believe there should be an increased focus on biosecurity and that New Zealand's primary industries should be integrally involved in the development of the country's biosecurity systems.

"We believe as an industry this goal is better achieved by working constructively with Government as opposed to entering into a divisive, costly and lengthy legal action. In line with this, we will continue to pressure the Government to build and maintain a world-class biosecurity system.

"We strongly caution growers against signing up to "The Claim" until all appropriate information is available to the industry. To this end we call upon the committee representing "The Claim" to act in the interests of the industry and publicly release all information regarding the claim so growers can have all of the facts when considering this matter."

The signatories are: Ray Sharp, chairman, EastPack Ltd; Neil Te Kani, chairman; Maori Growers Forum; Craig Thompson, chief executive, OPAC; Paul Jones, director, DMS Progrowers; James Trevelyan, managing director, Trevelyan's;
Rod Fry, chairman, Mainland Kiwi; Graham Cathie, chairman, Apata Group;
Sean Carnachan, managing director, Western Orchards Ltd; Jan Benes, managing director, Auckland Pack & Cool and Mount Pack & Cool;
Doug Brown, director, Riverlock Orchard Pack; Coolstore; G6 Group including Birchwood Packhouse Ltd, Whitehall Fruitpackers, Hume Pack N Cool Ltd, Kerifresh Ltd.