Millions sought as scampi claims reach High Court

A multimillion-dollar action involving scampi permits and lost earnings began in Wellington yesterday.

Two companies are suing the Government for tens of millions of dollars, claiming they were wrongly denied scampi fishing permits and then misled about government compensation.

United Fisheries and Trevor Goodship, and his company Pranfield Holdings, say they were wrongly denied scampi permits 16 years ago and had since suffered millions in lost earnings.

The Ministry of Fisheries "unlawfully, unfairly and unreasonably denied them necessary permits for scampi in the late 1980s and early 1990s," lawyer Tim Castle told the High Court.

The companies are seeking $27 million to $40 million each, plus unspecified exemplary damages in their suit against the Minister of Fisheries and the Attorney-General.

They accuse government officials of negligence, misfeasance and breaching their statutory duties.

The case began in 1990, when the permits were denied. Later, a parliamentary select committee reviewed the matter and decided the companies were owed government compensation.

However, the companies claim the Ministry of Fisheries dealt with them in bad faith by misleading them about the amount of compensation approved.

It had approved a minimum of $1.15 million and a maximum of $1.9 million for Trevor Goodship, but the ministry told the company that $1.15 million was the maximum allowable offer, Mr Castle said.

"The recommended minimums became maximums," he said.

The hearing, before Justice Alan MacKenzie, is expected to take three months.

- NZPA