Zespri boxes

ACT New Zealand has renewed calls for a federal government-led review of Zespri, following claims the single-desk kiwifruit marketer is refusing to assist with an industry investigation.

In late December (2013), New Zealand Kiwifruit Growers Incorporated (NZKGI) confirmed Zespri was no longer supplying information to its inquiry into the circumstances that led to the marketing firm’s prosecution for the underpayment of customs duties in China last year.

ACT primary industries spokesman Don Nicolson said Zespri’s unwillingness to participate further in the investigation provided grounds for an independent review.

“The Minister has said that he was not going to call a government inquiry while the industry was doing its own inquiry into the China problems, but now that inquiry has come to a halt,” Nicolson said.

“New Zealand Kiwifruit Growers Incorporated being unable to release a full report into the China prosecutions raises even more questions about their independence and ability to deliver much useful oversight, it also raises questions about the suitability of the legislation under which the kiwifruit industry operates.”

In October (2013) New Zealand’s Serious Fraud Office confirmed it was launching its own investigation into Zespri, although the scope and substance of the inquest have not been revealed.

It is understood Zespri has received legal advice not to release any further information to the NZKGI inquiry while the Serous Fraud Office investigates.

It is also understood the NZKGI inquiry has been a two part process; the first an investigation of the events the took place leading up to the Chinese customs case, and the second to understand Zespri's current operations in China to ensure the Zespri brand is performing in that market.

Zespri is known to have assisted with both parts of the investigation at stages, and has also conducted an internal review.

“As has been well canvassed over the past months, Zespri fully acknowledges that there have been historical issues in our China operations,' a Zespri spokesperson said. “Investigating and, where appropriate, rectifying these issues has been a priority for our board and senior management team.

“Over the past year, we have implemented a number of important steps to remedy the issues of the past and build this important market for the kiwifruit industry. This work is ongoing and Zespri looks forward to continuing to work with NZKGI and the broader industry as we look to secure and embrace the opportunity that China offers the industry into the future. Due to the ongoing Serious Fraud Office investigation, Zespri is unable to offer further comment.”

In October (2013), the Independent Kiwifruit Growers Association called for a similar independent review into Zespri’s practices, although nothing has yet manifested.

ACT New Zealand is a right-wing political party formed in Auckland in 1994.