Kiwifruit claim deadline looms

Scientific evidence could be crucial. Photo / John Borren

Tomorrow is the final deadline for plaintiffs to join the Kiwifruit Claim in the High Court. Billboards alerting growers to the deadline have been prominently displayed in key growing areas over the past month.

The Kiwfruit Claim is suing the government for alleged negligence involving the introduction of Psa-V, which hit the sector in 2010. The government denies any breach of duty. Although the sector is recovering strongly, the government's Sapere report estimated Psa-V caused losses of $885 million.

The High Court in July ruled against the Crown and allowed the claim to proceed as a class action, giving kiwifruit growers and post-harvest operators until October 9, 2015, to sign up.

"Zespri and KGI were initially cautious about the Kiwifruit Claim when it was launched," said claim spokesman Matthew Hooton.

"However, the High Court has since confirmed the claim has a sufficiently robust foundation for it to proceed as a class action."

The claim committee urged Zespri and New Zealand Kiwifruit Growers Inc. (KGI) to encourage growers to join the action. Both organisations said they continued to believe the class action was not in the best interests of the industry, but said they respected growers' rights to make their own decisions. The claim committee said that, as of this week, 42 per cent of Gold growers and about 15 per cent of Green growers affected by Psa-V - based on hectarage figures in Zespri's 2009-2010 review - had registered as plaintiffs. Seeka Kiwifruit Industries, which is also a leading grower, has signed up as a plaintiff representing the post-harvest sector.

When the claim was announced, Zespri and KGI suggested the industry's relationship with government could be put at risk were kiwifruit growers to sue the government. But Mr Hooton said one year later, the single seller desk and government support for the industry remained strong.

A spokesman for Zespri said the organisation respected the rights of the growers to make their own decisions.

"As we have stated since the claim was announced, Zespri does not believe that this action is in the best interests of the industry. This claim is now before the court and we expect this will be a lengthy process with significant legal uncertainties."

KGI chief executive Mike Chapman said the organisation had not changed its view on the merits of the claim.

"It is up to each grower to make their own decision about whether or not to join the claim," he said. "KGI has advised growers to take independent legal advice before joining the claim so as to understand their liabilities and risks."