Kiwifruit ruling gives clarity says GDC chief

Zespri gold 3 fruit kiwifruit hanging on the vine picture supplied PUBLICITY HANDOUT FROM ZESPRI NAG 13Jul17 - EXPORT VALUE: Zespri Gold3 kiwifruit hang from the vine. PHOTO/SUPPLIED BTG 24Jul20 - The dispute has been long and costly, growers say.Photo / File NZH 31Mar21 - Zespri gold kiwifruit. Photo / Supplied BTG 17Feb22 - Zespri Gold kiwifruit hanging on the vine. BTG 21Apr22 - Planted areas for gold kiwifruit varieties are increasing while planted in Hayward (green) varieties is declining. Photo / NZME BTG 21Apr22 - Planted areas for gold kiwifruit varieties are increasing while planted in Hayward (green) varieties is declining. Photo / NZME RGP 05Jul22 - WGP 05Jul22 - BTG 05Jul22 - HBG 13Jul22 -

The Court of Appeal decision on the gold kiwifruit issue was “a very significant decision and it is good to have clarity around this issue”, said Gisborne District Council chief executive Nedine Thatcher Swann.

In a decision released this week the Court of Appeal found in favour of the GDC around the issue of whether growing gold kiwifruit on a property adds to the capital value of the property.

“The court agreed with the council and the Valuer-General when we submitted that rating valuations ought to align broadly with market realities,” Ms Thatcher Swann said.

The court found that capital value was a proxy for fair market value.

Where the amount a purchaser would pay for a property was higher due to the presence of a licence or consent, such as the SunGold licence, that additional value was to be included in a capital valuation.

In its decision the court dismissed the appeal by the Bushmere Trust to the council’s 2020 valuation that the gold kiwifruit licence was an improvement and benefit to the land and thus justified rates rise.

Bushmere Trust represents all golden kiwifruit growers in Tairāwhiti and was granted the right to take the case to the Court of Appeal last year.

“Gisborne was the first local authority to undergo a triennial revaluation to adjust land valuation for growers of the golden variety based on the value of the growing licence,” Ms Thatcher Swann said.

“We understand nearly 50 local growers will be affected by the decision.

“The outcome is also likely to have implications for those growing the gold kiwifruit variety outside the region, but those decisions will come from each council responsible for the rating valuations in a particular area.”