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Due Processes Need To Be Followed: Minister

5 July 2001

Agriculture Minister Jim Sutton confirmed that he had received advice from the Crown Law Office about the past losses of ENZA today.

"The Crown Law opinion reinforces other opinions Ministry of Agriculture and Forestry officials have seen. It indicates that, on the face of it, the terms of growers' contracts do not allow year 2002 foreign exchange losses to be brought to account and deducted from year 2001 returns."

He said there were still questions awaiting answers about the year 2001 foreign exchange transactions.

There are several legal processes relating to the past losses currently underway, including arbitration between ENZA and growers and an investigation in foreign exchange dealings by industry regulatory watchdog, the Apple and Pear Board.

Mr Sutton said it was important to let those due processes take their course.

ENZA was having a board meeting on Monday, and Mr Sutton said he believed it was in the best interests of everyone in the industry that ENZA directors take the initiative to resolve the outstanding issues between them and growers.

"It is not my job to demolish ENZA. I want the parties to reach an agreed and reasonable resolution.

"I believe it is in the interests of the industry that ENZA is not only in the market functioning as an export marketer next year, but that the relationship with growers is in reasonable repair."

Ends


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