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Home / Business

Govt to review apple permits

3 Aug, 2000 10:56 AM2 mins to read

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By PHILIPPA STEVENSON agricultural editor

The controversial rules for apple exporting that had monopoly marketer Enza and would-be independent exporters spitting pips will be reviewed.

Agriculture Minister Jim Sutton said yesterday that the barely year-old apple and pear export regulations allowing shipments that complement Enza would be reviewed at the end of
this export season.

But there would be no changes until at least 2001-02. The timing would allow proper consultation and ensure growers backed any substantive changes.

Mr Sutton said it appeared the system had worked adequately but it was appropriate to review such an important mechanism.

"There were undoubtedly refinements and improvements that would be made in the light of this season's experience."

Several submissions for change had been made, from total deregulation to the effective elimination of independent exporting. But it appeared growers and industry participants did not broadly support any particular proposal, Mr Sutton said.

The buying of Enza shares by Guinness Peat Group and FR Partners did not necessarily require changes to Enza's privileged statutory export right, but it would be a significant issue to consider as part of the review.

Enza chairman John McCliskie, who criticised the permits process for undercutting Enza in several markets, was delighted that Mr Sutton had provided certainty for next season.

"More importantly, it indicates that some of the anomalies we have picked up since the legislation can be addressed in a proper way."

Enza critic, Independent Pipfruit Growers secretary Van Howard, was disappointed that the regulations would not be removed immediately.

"But if we are to have the status quo we would be absolutely adamant that the permits process is made to work for the growers of New Zealand and not a protection of Enza's single-desk status."

The group has alleged interference by Enza in the permits process because it is given information on rival exporters' plans as part of the permits committee's deliberations.

This season, Enza marketed 18.2 million cartons of apples and independent exporters 1.8 million, making a record total of 20 million.

Meanwhile, GPG's Tony Gibbs said his firm and FR Partners were only a few hundred thousand shares short of their 40 per cent shareholding goal.

The offer for Enza shares closes today.

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