$1.7M sought

Press, 2 September 1983, Page 9

$1.7M sought

NZPA special correspondent Rarootonga A Cook Islands fishing company seeks SNZI.7 million in damages from the Cook Island Government in the biggest claim ever made in the Cooks.

Marine Resources, Ltd, which went into receivership before it even began fishing, claims that the former Government of Sir Thomas Davis breached an agreement with it over exclusive fishing rights in the islands.

The company claims that the Government was to give it control of a 12-mile (19km) fishing zone around the seven islands of the Northern Cook Group, the use of freezers in the islands, and the purchasing or leasing rights to a small Government-owned fishing vessel. But none of this ever materialised.

In October, 1981, the Government entered into an agreement with a Norwegian fishing group giving it rights to the 12mile and 200-mile zones around the northern islands.

Marine Resources, which is 30 per cent owned by an ad hoc Government body, the Cook Island Development Bank, went into receivership a year ago without having started fishing. The Government’s defence case began on Monday, its main argument being that there was no agreement and that an exchange of letters amounted to preliminary negotiations as opposed to a concluded agreement.

The defence case is expected to last another four days.

Marine REsources seeks a total of ?NZ1,709,573 - $NZ305,200 is the part allegedly spent during the establishment period and $NZ1,404,373 is revenue the company claims it would have received . had the agreement continued. Mr Justice Speight is hearing the case.