By PHILIPPA STEVENSON agricultural editor
Apple growers stepped up criticism of an embattled Enza yesterday as they awaited the board's latest play in the industry's $50 million foreign exchange dispute.
The board of the Wellington-based company went to ground yesterday, apparently meeting outside the capital - possibly in Auckland.
It met amid calls
from Agriculture Minister Jim Sutton and orchardists to quickly resolve its wrangle with growers over liability for debt arising from botched forex dealings. It is feared the row threatens both growers' and Enza's viability.
Orchardists' representative Pipfruit Growers NZ, whose case against Enza is being championed by Nelson Opposition MP Nick Smith, yesterday urged the company to halt deductions on growers' fruit payments "as a gesture of goodwill."
It described the $4.50 a carton retentions being used to cover the $50 million forex costs as a "pre-emptive strike on grower accounts."
In an open letter to Enza directors, group chairman Phil Alison said Enza had acknowledged responsibility for the forex losses in a letter on Friday replying to questions raised at nationwide grower meetings last week.
The company's response went on to discuss the practices of its predecessor, the Apple and Pear Marketing Board, in passing costs on to growers.
But that overlooked changes that occurred when the producer board was re-regulated into a grower-owned company on April 1 last year, and the subsequent involvement of effectively non-grower shareholders Guinness Peat Group and FR Partners, Mr Alison said.
GPG and FR own around 36 per cent of Enza and its board is dominated by directors linked to the corporate shareholders.
"To overlook this change is to fail to understand the major restructuring of the pipfruit industry," he said.
Last night Enza issued a statement reiterating its view that growers should pay for the losses, but it hinted at a conciliatory approach. Although it is legally obliged to take part in arbitration initiated by grower groups, the company said using legal means to resolve the issue would take too long: "Accordingly, Enza has arranged to meet the Minister of Agriculture tomorrow."
Pipfruit Growers was considering asking the Government to resolve the matter by passing special legislation, but preferred to reach an agreement with Enza.
