Tuesday, 18 September 2012 16:48

No legal action over Psa

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NEW ZEALAND Kiwifruit Growers Inc (NZKGI) will not be taking legal action against MPI over Psa.

The grower organisation sought legal advice after the independently commissioned Sapere report released in July found failings in the ministry’s biosecurity practices.

But NZKGI president Neil Trebilco says initial advice is there’s no basis for civil suit on behalf of growers.  Although the Sapere report identified failings, there was little to prove that Psa was the direct result of the MPI omissions. “It’s that burden of proof that is it difficult,” he says.

That is also evident in the Commerce Commission ruling on Kiwi Pollen (NZ) Ltd, he says. The commission warned – but chose not to prosecute – kiwifruit pollen supplier Kiwi Pollen (NZ) for potentially misleading its customers about where some of its pollen was from. 

The commission alleges Kiwi Pollen was in breach of the Fair Trading Act, which prohibits false or misleading claims about the place of origin of goods.

Kate Morrison, the commission’s general manager of competition, says that though most of Kiwi Pollen’s product was sourced from New Zealand during that time, Kiwi Pollen did not tell its customers when it was also selling them imported pollen. “In fact Kiwi Pollen’s website continued to give the impression all of its pollen was collected from properties in New Zealand.”
But the commission says it found no conclusive evidence that imported pollen sold by Kiwi Pollen caused Psa outbreak in New Zealand.

Trebilco says the commission’s ruling was “not too surprising” given how difficult it is to prove how Psa got into New Zealand.

Meanwhile NZKGI is still talking to the Government, MPI and the Ministry of Social Development about possible help for growers on the breadline under the “adverse event” provisions.

“That decision hasn’t been made yet; we are currently surveying growers and their financial needs and those that are most affected. “The payment (similar to a benefit) is called the rural assistance payment which means growers who have no income can work their orchard and be able to put food on the table.”

Inland Revenue has also made some concessions on the Income Equalisation Scheme and the original $25 million grant from government has not yet all been spent. “We are hopeful that will enable us to continue to fight Psa.”

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