3 February 2000

Sutton Approves New ENZA Share Plan

The Minister of Agriculture, Jim Sutton, has approved the New Zealand Apple and Pear Marketing Boards’ revised restructuring plan and it will now go to a grower referendum for endorsement later this month.

It contains a new share allocation plan and constitution for a new company – ENZA Limited – which is to be formed out of the current assets of the Board.

“I am pleased to be able to approve this revised restructuring plan” Mr Sutton said, “and the reform process can now move forward for approval by growers.”

Mr Sutton said he had declined to approve the Board’s original restructuring plan in December as the proposed share allocation did not meet the legal requirement to fairly reflect the ownership rights of pipfruit growers, based on their supply history to the Board. It allocated shares solely on production in 1998/99

The revised plan allocates shares on the volume of growers’ supply to the Board in the seven seasons from 1992/93 to 1998/99.

"In my view, the Board’s new share allocation plan now meets the requirements of the Act, and growers’ interests are protected,” Mr Sutton said.

The plan will now go to apple and pear growers for approval by way of a referendum. Results are expected in early March and the required changes will be implemented by 1 April 2000, the day when the Board is required by law to convert into ENZA Limited.

ENDS

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