Kiwifruit battle turns nasty

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Tue, 24 Nov 2009 5:19p.m.

Zespri has a monopoly on kiwifruit exports

Zespri has a monopoly on kiwifruit exports

By Duncan Garner

The fight between Turners and Growers (T&G) and Zespri over the right to export kiwifruit has turned nasty.

In letters obtained by 3 News, Zespri is accusing T&G of colluding with foreign governments, including the US, to break Zespri's monopoly.

T&G says the accusation is laughable, but admits meeting US and European government officials over the matter.

Zespri has a monopoly exporting kiwifruit, and T&G is locked out. The fight is before the courts, but the accusations are flying.

Federated Farmers (FF) suggests T&G's actions amount to sabotage.

"I think it does have elements of that," says Don Nicholson, FF. "I think it could be called sabotage."

Yesterday 3 News revealed the US government had gone to the World Trade Organisation (WTO) demanding a 'please explain' over claims Zespri is abusing its dominance.

Now these letters show Zespri accusing T&G of collusion, including meeting US officials at the embassy in Wellington, in August, a month before the WTO action.

In a letter to the Government six weeks ago, Zespri said:

"Turners and Growers are seeking to collude with foreign powers to apply pressure on the New Zealand government to deregulate the kiwifruit industry."

Zespri says it is a "serious attack on our industry", and "interference in the Government's international relations".

T&G rejects claims of sabotage but admits yes, it did meet US officials and officials from European countries who are asking questions.

But T&G's Tony Gibbs says he has influenced no one.

"I'm grossly flattered, but of course it's complete nonsense."

Zespri is making no comment. FF says this fight is doing no one any good.

"We shouldn't be bashing up each other, at home or anywhere else," says Mr Nicholson.

But Mr Gibbs makes no apologies for lobbying other countries.

"Zespri is the last monopoly in the world," he says. "It's a pimple on the bum of free trade, it needs to be lanced."

Trade Minister Tim Groser says the Government backs Zespri 100 percent. But Mr Groser chose his words carefully - he is a former diplomat, and for him to say T&G has been unhelpful is strong criticism indeed.

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