By Philippa Stevenson
Kiwifruit growers have retained their single-seller status but had to give up plans for a co-operative structure as part of the Government's producer board deregulation process.
Cabinet yesterday agreed in principle to a compromise corporatisation deal struck with the $1.6 billion industry - the first for a major producer
board.
Food and Fibre Minister John Luxton and Finance Minister Sir William Birch, who announced the plan, said the Government had conceded that a single kiwifruit marketing desk should continue "without a sunset clause".
Fresh from getting endorsement for the plan from two well-attended grower meetings in the Bay of Plenty, Kiwifruit New Zealand chairman Doug Voss last night said the industry had essentially been re-regulated, rather than deregulated.
"Given the process we have been through I think we should be very happy with it. It has maintained the type of structure we wanted which will have real benefits for growers, and make some money for us."
In give and take negotiations, the Government had achieved some of its public policy goals while the industry had had to accept a standard company structure and tradeability of shares among growers, Mr Voss said.
In a new structure aimed to begin on April 1 next year, Kiwifruit New Zealand would have regulatory and monitoring roles while Zespri International would be a company owning all industry assets and brands.
The board would monitor Zespri, and approve other players to do collaborative marketing with it.
Shares in Zespri would be issued to all kiwifruit growers, and could be traded among them. Its roles would be export marketing, crop acquisition, grading, quality, pricing and commercial research.
Zespri would be prohibited from non-core business, including sourcing overseas fruit for a 12-month supply business.
The empowering legislation is to be referred to a select committee for hearings during August. It is not expected to strike any hitches, with Labour Agriculture spokesman Jim Sutton yesterday saying Labour would assist passage of the law provided the plans were endorsed by growers.
Mr Voss said he doubted the plan would silence board critics and those wanting full deregulation, but at yesterday's meeting people with those views abstained rather than voted against the plan.
"We are getting support from quite strenuous supporters of deregulation because they are saying it is a sensible step forward that gives a better commercial structure, and more rights and protections than the old system."
