New Zealand Kiwifruit Growers to appeal . . .

File picture

New Zealand Kiwifruit Growers (NZKGI) will appeal a High Court ruling that allows Gisborne District Council to include SunGold licences in orchard land values, bumping up growers' rates.

“NZKGI and our Gisborne representative, Tim Tietjen, have been fighting a legal battle for growers after the Gisborne District Council attached the value of gold kiwifruit licences to the value of growers' land,” NZGI chief executive Colin Bond said in a statement.

“In February 2022, the Land Valuation Tribunal ruled that we succeeded on all grounds of our objection and that Gold kiwifruit licence is not lawfully able to be included in rating valuations as it is not an improvement to, or for the benefit of, the land.

“The Gisborne District Council appealed this result and NZKGI was disappointed to learn that the High Court has ruled that SunGold kiwifruit can in fact be included in the value of the land, ultimately being included in the growers' property rates.

“In Tim's case, the capital valuation on his 3.11-hectare Bushmere Road property has shot from $1.65m to $4.1million.”

In its judgement, the High Court stated the Tribunal “erred” in considering that the rules prevented the council from taking account of the SunGold plantings.

The council's decision to appeal came with the advice and support of the Valuer-General.

“NZKGI has advocated strongly on behalf of kiwifruit growers and recognises the importance of these proceedings as they are the first in New Zealand and thus precedent-setting,” Mr Bond's statement said.

“Increasing industry costs can make the kiwifruit industry a less attractive investment and reduce grower spend in local communities, ultimately impacting upon economies across New Zealand.

Gisborne growers return over $80 million to the Gisborne economy and should be supported by their council, the statement said.

“This result is not just an issue for kiwifruit growers in the Gisborne district as the decision could be wide-ranging with other councils across New Zealand indicating that they will follow suit.

“Further, NZKGI acknowledges that this test case is eagerly watched by other sectors of the horticultural industry, concerned that local councils might adopt a similar approach over their land valuations.

“NZKGI retains conviction in its position that the value of a licence should not be included in the capital value of land and that there are strong grounds for an appeal.

“Consequently, NZKGI will continue to advocate for growers in this space and seek leave to appeal from the High Court for this test case.

“It is important to note that the Court of Appeal we will take this case to will be the final stage, as there are no further rights of appeal in rating cases.

“The appeal process will take time, and we have been advised that any appeal may not be heard until mid-2023.”