Court skewers 'arrogant' meat barons

By Jock Anderson

Monday 16th September 2002

A Court of Appeal ruling against the meat industry was yesterday welcomed with relief by the man who lost everything in a David-and-Goliath battle with meat barons.

The court this week dismissed appeals by the Meat Board (now known as Meat New Zealand) and the Meat Industry Association against a 2001 High Court judgment in favour of now-defunct boutique meat company Paramount Export and its marketing arm, Ronnick Commodities.

At the High Court Paramount and Ronnick were awarded $2.15 million for loss of business, $3.18 million damages, plus receivership and liquidation costs, plus 6% interest and legal costs.

The Appeal Court referred the amount awarded for loss of business back to the High Court for further consideration but it is expected the final judgment will be close to $5 million plus interest, part of which will go to creditors and shareholders in the defunct companies.

Former companies principal Ron Russell said the appeal court ruling came far too late to rescue his Taumarunui-based businesses, both of which were forced into receivership and liquidation with the loss of 100 jobs.

Having lost his home, businesses and millions of dollars Mr Russell said one of his first priorities when he received his share of the court award would be to move out of rental accommodation and buy his own home again.

Mr Russell, who has since established a dog food business, said his struggle for a small piece of the European Union sheep meat export trade was met with "irresponsible arrogance" from the Meat Board and Meat Industry Association.

When Mr Russell, primarily an exporter of horse meat, strived in the 1990s for a fair slice of the sheep meat market he quickly realised he was considered by meat industry big boys as an irritating newcomer to an unsympathetic and fiercely competitive market, described at one point in the case as "compassionate as granite."

A signatory to an industry-wide quota agreement, Mr Russell borrowed heavily to upgrade his plant in anticipation of a fairly modest slice about 1% of a potential multimillion-dollar market.

But according to Mr Russell the Meat Board, Meat Industry Association and the then joint industry body known as the Meat Planning Council moved the goal posts, making it impossible for his newcomer business to play.

His companies Taumarunui's second-biggest employer could not meet their financial commitments, were forced to close and were put in receivership and liquidation in 1996 with the loss of 100 jobs.

"It is a relief to know that we were essentially justified throughout, not only morally and ethically but legally," he said.

Meat Industry Association executive director Brian Lynch said the judgment and the cost effectiveness of an appeal to the Privy Council would be considered with Meat New Zealand at the Meat Industry Association annual conference in Queenstown this weekend.

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