The initial hearing of horticulture group Turners & Growers (T&G) claims against kiwifruit marketer Zespri wrapped up in Auckland’s High Court this afternoon New Zealand time.
Industry figures were not able to say when the Court’s judgement will be made, but the result of the hearing will no doubt be tensely awaited by both New Zealand’s kiwifruit industry and traders globally.
This week’s initial hearing addressed two core issues; whether the regulations on which Zespri’s current form is based are unlawful, and whether the High Court has the jurisdiction to determine if Zespri has been acting in breach of those regulations.
If the court determines it does have that jurisdiction, T&G’s specific claims against Zespri’s practices will be addressed at a hearing scheduled for May next year. If not, the claims will be heard by Kiwifruit New Zealand (KNZ), which according to Zespri’s lawyer David Goddard QC is the correct forum.
“`Kiwifruit New Zealand is` an expert body that can draw on its own industry expertise and its experience in administering these and other aspects of the regulatory regime,” he told local media.
“Any complaint seeking any relief must be made to Kiwifruit New Zealand. That, in a nutshell, is the argument. Any issue that arises under them `Regulations 9 and 11 under the Kiwifruit Export Regulations` should be dealt with by KNZ.”
The decision on the legality of the Kiwifruit Export Regulations 1999, however, is the issue with the most significant implications.
If the legislative framework on which the world’s largest kiwifruit marketer is built is found to be unlawful, the future of Zespri’s single-desk model could be in question.
