Zespri says court finds in its favour

Photo / Bay of Plenty Times.

Kiwifruit marketer Zespri has beaten off a court action from Turners & Growers Ltd challenging its export monopoly.

A High Court judgment today declined a first cause of action and struck out the second and third cause of action by Turners and Growers.

The court found that the Kiwifruit Export Regulations 1999 were validly established 11 years ago and that Kiwifruit New Zealand, the industry regulator, has exclusive jurisdiction to consider complaints under those regulations.

Zespri called on Turners and Growers to discuss with it how its commercial aspirations could be achieved under the collaborative marketing provisions of the Kiwifruit Export Regulations 1999.

"We have always believed that the collaborative marketing provisions provide the best and least-cost path forward for Turners and Growers and others to develop export opportunities that will benefit New Zealand kiwifruit growers and their own shareholders," Zespri chief executive Lain Jager said.

He said 17 companies are exporting kiwifruit from New Zealand through collaborative marketing.

"The court today rejecting Turner and Growers' claims represents a natural juncture in its political campaign to break up the New Zealand kiwifruit industry and it would be highly desirable if Turners and Growers now decided not to subject kiwifruit growers, Zespri and its own shareholders to the further expense of prolonged litigation through an appeal," he said.

Under the Kiwifruit Export Regulations 1999 no one can export kiwifruit from New Zealand, other than for consumption in Australia, apart from Zespri.

Turners and Growers challenged the export monopoly and claimed breaches of non-discrimination and non-diversification provisions in the regulations.

The first principal issue in the case was whether the regulations were validly made under the Restructuring Act.

Turners and Growers argued that the minister had no power to recommend and the Governor-General had no power to make regulations under the Restructuring Act that imposed the ban. The Act turned the old New Zealand Kiwifruit Marketing Board into a company, rather than a co-operative.

Zespri said the industry and major political parties were in favour of retaining a single desk seller regime. It argued that the Commerce Act and Bill of Rights Act did not help Turners and Growers' case.

The judgment said Turners and Growers did not establish that the regulations had no effect.

- NZPA