The Corporatisation Process: Specific Issues
35. The Producer Board Project Team has been liasing with the producer boards in the preparation of their restructuring plans. The key issues that have arisen and the current state of play are noted below:
Constitution
The Apple and Pear Industry
36. The draft constitution was submitted to the Minister as part of the overall restructuring plan on 1 December 1999. The plan has yet to be approved but there do not appear to be any major problems with the constitution.
The Kiwifruit Industry
37. The Minister approved the draft constitution as part of the restructuring plan on 24 November 1999.
Share Allocation Plan
The Apple and Pear Industry
38. The draft share allocation plan was submitted to the Minister on 1 December 1999. It has yet to be approved.
39. The number of shares to be issued to each eligible grower has been calculated on the basis that each such grower would be issued one share for each tray-carton equivalent of apples and pears supplied to the NZAPMB according to the following formula:
· 15 percent of the total number of tray-carton equivalents supplied to the NZAPMB by the grower in the 1992/93 season;
· 15 percent of the total number of tray-carton equivalents supplied to the NZAPMB by the individual grower in the 1993/94 to 1997/98 seasons, divided by 5; and
· 70 percent of the total number of tray-carton equivalents supplied to the NZAPMB by the individual grower in the 1998/99 season.
40. Allowances have been made for hail and other seasonal damage and for product exported under export licences in the 1998/99 season.
41. The Canterbury Fruitgrowers Association (“CFA”) filed proceedings in the High Court on 2 December in relation to the share allocation plan. The first defendant is the NZAPMB. The second defendant is the Minister. The CFA dispute the fairness of the allocation methodology. A substantive hearing has been set down for the first week of February 2000. In the meantime, agreement has been reached between the parties that the Minister should continue with the approval process. However, it is unlikely, the referendum will proceed until the litigation is resolved.
The Kiwifruit Industry
42. The Minister approved the draft share allocation plan on 24 November 1999 and the plan is now proceeding to grower referendum. The results of the referendum are expected before Christmas.
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