Meat bodies set for third stab at case

By PHILIPPA STEVENSON agriculture editor

Meat NZ and the Meat Industry Association are expected to confirm today they will appeal to the Privy Council in a case they have already lost twice at a cost of up to $10 million.

Meat NZ chief executive Neil Taylor said legal advice suggested there was good cause to challenge "at least some of the decisions" by the Appeal Court and the High Court which went against the two bodies.

Taumarunui meat company Paramount Export, and its export arm, Ronnick Commodities - described by a High Court judge as vibrant and successful - went into receivership and liquidation after being denied quota for the valuable European Union sheep meat market in 1996.

The quota allocation regime of the time was administered by the Meat Planning Council, formed by Meat NZ and the MIA.

The High Court awarded the Taumarunui companies of sole shareholder Ron Russell around $6 million for lost value and damages plus interest and legal costs.

Yesterday, Taylor said he did not expect the cost of appeal to be great when compared with the expense of the seven-year-old case so far, and to "be a fraction of what the costs would be if we lost".

The cost would "probably be minuscule compared to people's expectations, and there is a lot at stake," he said, adding it would be worth it "to get that independent view again".

By going to the Privy Council the matter was taken into a neutral environment where there had been no history, or publicity on the case, Taylor said.

"We'd like to get it cleared up as soon as possible. There's a lot of farmers' money at stake on this and on the best advice we can get we believe there is a case to be made."

Russell said the move was only designed to drag out the case to keep it from its costly conclusion. It was irresponsible and likely to add at least $1 million to the bill.

The price would be paid by sheep and beef farmers through their Meat NZ levies. The MIA, whose activities are funded by meat exporters, would avoid liability by being wound up.

Russell said his legal advice suggested that the Privy Council would not interfere with the decisions of the New Zealand courts because they essentially comprised findings of fact.

He suggested another motive could be to buy time for Meat NZ during the present investigation of the future administration of all New Zealand's export quota.

Meat NZ did not want to be under the spotlight during the investigation, Russell said.

Meat NZ is involved in two other cases over quota, one dating from the early 1990s brought by Christchurch company J. W. Hartnell over timing and quantity of quota, and one brought two years ago by King Country's Crusader Meats disputing restrictions on chilled export product.

Meat NZ's application for the Crusader case to be struck out is expected to be heard in the High Court at Wellington today.