I'm not colluding with foreign powers, says Gibbs

Tony Gibbs. Photo / Brett Phibbs

Trade Minister Tim Groser has fired a shot across Turners & Growers' bows as allegations surface that the company has "sought to collude with foreign powers" to undermine the New Zealand Government's trade policy.

Zespri made the allegations directly to Groser at a September 28 meeting after it became concerned that Turners & Growers was trying to directly enlist United States government support to challenge the kiwifruit exporters' export stranglehold.

"Basically, what is going on here, is having failed to persuade the growers, having failed to persuade the Government - the allegation is they are attempting to persuade other governments," said Groser.

But the allegations did not surface publicly until after Turners & Growers chairman Tony Gibbs' public relations adviser circulated "news" on Monday that the World Trade Organisation had lodged a question over his court action in New Zealand against Zespri International's single desk status.

"We didn't come down in the last shower," said Groser. "This is a commercial dispute dressed up in policy terms."

Yesterday, Gibbs, bristling at the collusion allegations, strongly denied that a meeting which a Turners & Growers executive held with US Embassy officials in Wellington was part of an orchestrated campaign to put the focus on Zespri's "monopoly".

"Frankly, this is hysterical nonsense ... it is ridiculous," said Gibbs. "I didn't meet anyone at all. At one stage we did - I didn't - drop a copy [of Turners & Growers' claim] to the US Embassy who asked for it."

He said the idea that Turners & Growers and Tony Gibbs might have enough influence to get the US to issue a "please explain" was "ridiculous".

In two letters to Groser, Zespri chief executive Lain Jager cited actions which he claims were part of a campaign to get the "US Government to challenge the NZ kiwifruit regulations put in place by the Government of New Zealand".

Among them was a meeting that Turners & Growers executive Murray Malone and Russell McVeagh lawyers had with US Embassy officials in August. Groser told the Business Herald the Government was not about to investigate the Jager allegations.

The Government will tender New Zealand's explanations at the January meeting of the WTO working group on state trading enterprises.

"We wouldn't want to prejudge the outcome of the domestic court case in our response to the US," said Groser. "A fairly factual response is likely - and there is very little we can say about that at this point in time."