Gibbs to quit chairman's job

By PHILIPPA STEVENSON agricultural editor

Enza chairman Tony Gibbs will quit the job at the end of the month after settlement is reached in the $50 million foreign exchange dispute with growers.

Mr Gibbs' resignation comes a week after he described Enza as a problem child for his company, corporate investor Guinness Peat Group, which owns 20 per cent of the apple exporter.

He vowed to stay on through the tough times. "I'm not going to quit. We've got to fix it," he told Weekend Business last week.

Yesterday Mr Gibbs said he would remain as a director of Enza and rejected criticism that his style as chairman had exacerbated the row with growers over liability for the foreign exchange debt.

"I've got other responsibilities in other countries and other things I have to do.

"My commitment to Enza is there, but somebody else can be the chairman."

Growers have welcomed his resignation.

The chairman of Pipfruit Growers NZ Phil Alison said it was "a positive step" in achieving a resolution of the dispute.

"It's fair to say we've had our differences with Mr Gibbs since he became chairman of Enza.

"On the positive side, we always knew where he was coming from. However, we have found him a difficult individual to negotiate with."

Mr Gibbs said he had originally intended to chair Enza for only a few months and the job had taken too much of his time.

Agreement with growers on the foreign exchange dispute was close and he intended to see that through before stepping down.

Asked whether a resolution would be reached by the end of this month, he said: "Oh, God yes."

He declined to say what was being considered but it is understood GPG and fellow corporate investor FR Partners are prepared to forgo a forecast $19 million debt coming to account next year provided growers pay at least $31 million due this year.

Growers are said to be baulking at the amount, and have suggested conditions on the deal.

"I think we may be in a position to announce what we are doing but it may take a little while for things to actually happen," Mr Gibbs said.

"But as for getting there and agreeing, yes, I'm hopeful that will happen sooner rather than later."

Mr Alison said growers shared the hope that a settlement would be reached before the month's end.

Mr Gibbs said significant changes to Enza had been largely completed, including a major restructuring and streamlining of the company's operations and the imminent head office shift from Wellington to Hastings.

Enza deputy chairman Bill Birnie, of FR Partners, said yesterday that he would chair the company after Mr Gibbs' left and until the board appointed a new head.

He said Mr Gibbs' decision would disappoint many in the industry but his departure was understandable given his heavy workload at Enza.

Meanwhile, industry sources say uncertainty has meant an unrealistic number of bookings have been made for shipping containers for next season's apple crop.

Estimates of the size of the crop range from 15 to 18 million cartons but bookings had been made for up to 50 million cartons.

They said the improbable figure could partly be explained by exporters reacting to industry deregulation, but it could also be seen as a signal of growers' dissatisfaction with Enza, and their desire to ensure crops got to market with, or without, its involvement.