1. What is The Kiwifruit Claim?
A group of kiwifruit growers representing more than 10 percent of the industry are suing the Government for damage caused by the Psa disease outbreak of 2010.
2. How much are they claiming?
The group is seeking $885 million, a claim based on economic losses quantified by the Sapere report - an independent report commissioned by the Ministry for Primary Industries.
3. What is Psa?
Psa is a bacteria that can cause kiwifruit vines to die. Psa is believed to be spread by wet or windy weather, plant material, footwear, vehicles and orchard tools.
In 2010 the disease was first detected in New Zealand and quickly spread throughout the Bay of Plenty, ravaging the country's billion-dollar kiwifruit industry.
It is not associated with risks to human or animal health and only affects kiwifruit.
4. Why are the growers filing this claim?
The growers blame Biosecurity New Zealand for not putting adequate controls in place to protect New Zealand from Psa.
The Government contributed an initial $25 million to the management of Psa, which was matched dollar for dollar by the industry.
However the claimant group says losses have climbed to $885 million since then. They say a number of growers have lost entire orchards, have been forced to undergo mortgagee sales, or have taken a big hit financially.
5. What does the Government say?
MPI says it will consider the group's claim but is confident it has acted appropriately.
It is not aware of the Crown being held legally liable for this type of biosecurity breach before and says various studies have shown it's uncertain exactly how Psa entered New Zealand.
It claims the kiwifruit industry has bounced back strongly since PSA and growers are focused on the future and getting on with the job.
6. Why has the group waited this long to pursue its claim?
It has taken over four years to assemble the information about what happened when Psa came into New Zealand, including DNA evidence.
7. Why is Zespri not involved directly?
The claim is a grower initiative. The claimant group has briefed Zespri on it but does not expect they will become directly involved.
8. Who is funding the claim?
The litigation is being part funded by growers. Funding is also coming from LPF Group Limited, a locally based litigation funder.
9. Who qualifies to sign up to this litigation?
All kiwifruit growers or post-harvest operators whose orchards or businesses were affected by Psa as at October 1, 2010, even if they have subsequently sold.
10. How big is the claim group expected to get?
Group chairman John Cameron expects 9 out of 10 orchardists will sign up within a month.
3 News
source: newshub archive
