Submissions sought on fruit import agreement

Press, 23 March 1985, Page 5

Submissions sought on fruit import agreement

PA Wellington The . Government has called for submissions from the public before it makes any decisions on the agreement that gives a monopoly on the import and distribution of citrus, fruit, bananas, grapes, and pineapples. The agreement has given Fruit Distributors, Ltd, a monopoly on some fruit imports since 1951. Under the agreement with the Crown, the company, which is owned by 32 distributors, is required to restrict its dividends, charges, and commissions to protect New Zealand growers and to encourage the fruit business in some Pacific islands. A discussion paper released by the Acting Minister of Agriculture, Mr Colman, suggested that while

an end to the monopoly agreement might benefit

New Zealand consumers by increasing competition and innovation, there could be a substantial impact on the fruit industries of Tonga, the Cook Islands, Niue, Tokelau, and Western Samoa. The discussion paper said bananas were the most important fruit in both value and volume, and that the Pacific islands’ share of the New Zealand market had dropped from more than 80 per cent in 1968 to an average of 9 per cent in the last 10 years, because of disease, hurricanes, and quality problems. Ecuador and the Philippines were now the main suppliers and consumers exhibited a strong preference for bananas from those two countries.