Gibbs to PM: Four Questions to Answer on Zespri Monopoly

Please find attached a letter to the Prime Minister from Tony Gibbs ahead of privately owned monopoly kiwifruit exporter, Zespri's function in Parliament today.

In the letter Tony Gibbs says there are four vital questions that Prime Minister, John Key must answer in his speech at the function:

1. Why is the National Government supporting one private company, Zespri, to hold a monopoly over an entire industry’s exports when the Government’s own 2025 Taskforce said kiwifruit vines and fruit are private property and that Zespri’s monopoly powers should be repealed?

2. Does he have confidence in the Zespri Board, Chairman, John Loughlin and Director Craig Greenless, who run the monopoly at the Government’s pleasure, following serious allegations that private shareholder proxy votes have been accessed prior to Zespri AGM’s and that; if these allegations are correct that Mr Greenless accessed the information over several years he should not hold a position as a Zespri Director.

3. Has the Government mislead the WTO about the true nature of Zespri’s monopoly in the updated notification sent by the Government to the WTO on 14 May 2011 which states that Zespri does not receive any Government subsidies when Zespri’s research into new kiwifruit varieties had been subsidised by the taxpayer who will not see a cent of any profit from them?

4. Why is a National Government allowing the shareholders of a private company to reap the profits from an entire export industry when many ordinary kiwifruit growers (up to 30%) are not shareholders in Zespri?

A copy of the letter has been sent to all Members of Parliament.

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Dear Prime Minister

We understand that Tauranga MP Simon Bridges is today hosting at Parliament a reception for the “Kiwifruit Industry” to thank Parliament, Government and Officials for their support for Zespri’s monopoly control over New Zealand kiwifruit exports and to “outline its growth prospects through to 2025”.

Unfortunately for the Government, Mr Bridges is confusing one private company, Zespri, with an entire industry within which there are many other great companies who wish to contribute to New Zealand’s export earnings and the growth of the Kiwifruit industry through their own innovative new kiwifruit varieties. Turners & Growers varieties alone could add half a billion in export earnings once in full production and being able to export without restriction.

The Government’s own 2025 Taskforce said Zespri’s outdated monopoly must go as part of this country’s moves to boost productivity and close the gap with Australia, so any predictions by Zespri about the future growth of the entire industry today are meaningless.

As New Zealand’s largest exporter of New Zealand’s horticultural products, proudly promoting our country’s best and competing freely and fairly on the world stage to earn valuable export dollars for growers here, we find it extremely concerning that the Government is supporting this publicity stunt and further, that in doing so it is making a mockery of its own economic principles and of New Zealand’s work internationally to secure free trade.

We understand that you will be addressing this function and to have any value, your speech must address four vital issues: 1. Why is the National Government supporting one private company, Zespri, to hold a monopoly over an entire industry’s exports when the Government’s own 2025 task force said kiwifruit vines and fruit are private property and that Zespri’s monopoly powers should be repealed?

2. Do you have confidence in the Zespri Board, Chairman, John Loughlin and Director Craig Greenless who run the monopoly at the Government’s pleasure following serious allegations that private shareholder proxy votes have been accessed prior to Zespri AGM’s and that; if these allegations are correct that Mr Greenless accessed the information over several years, he should not hold a position as a Zespri Director.

3. Has the Government mislead the WTO about the true nature of Zespri’s monopoly in the updated notification sent by the Government to the WTO on 14 May 2011 which states that Zespri does not receive any Government subsidies when Zespri’s research into new kiwifruit varieties had been subsidised by the taxpayer who will not see a cent of any profit from them?

4. Why is a National Government allowing the shareholders of a private company to reap the profits from an entire export industry when many ordinary kiwifruit growers (up to 30%) are not shareholders in Zespri?

Turners & Growers is working to achieve free and unrestricted trade access for all New Zealand grown kiwifruit to world markets. Importantly I have been contacted by MPs across Parliament regarding the recent poll showing New Zealanders also agree that Zespri’s private monopoly is unfair and should be repealed by the Government.

Yours sincerely,
A I (Tony) Gibbs

ENDS

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