Growers to ask for Prodi`s intervention

The Malta Potato Growers Export Co Ltd is to ask the President of the European Commission, Romano Prodi, to intervene after the company was stopped from exporting three containers of potatoes to Belgium by the agriculture department.

Meanwhile, the potatoes remained in the hot spring sun at Ta` Qali for the third day.

Mr Peter Axisa, who represents the company, said a letter would be sent to Prodi today explaining the situation and basically complaining that a government taking measures to come in line with European Union rules was holding growers back from tapping new markets and had so far failed to liberalise the sector.

The department argues that exporting the company`s 64 tons of potatoes to Belgium would breach a contract it has with a Dutch importer to export 6,000 tons to Holland.

Speaking after a meeting with the 27 growers who form part of the company and who want to export to Belgium, Mr Axisa said Mr Prodi would be asked to try and influence the government to allow the export to Belgium to go ahead.

His intervention was being sought after a request for the prime minister`s intervention in the matter had not been met, said Mr Axisa.

At the meeting, the growers gave the company`s committee a vote of confidence and authorised it to fight on.

"They are determined that their potatoes will not end up on Holland," he said.

The department had offered to export the potatoes to Holland under the Dutch contract and at the same guaranteed prices, or to put them in cold storage.

Earlier yesterday, sources said contacts continued between the two parties throughout the day in an effort to solve the impasse.

The Malta Potato Growers Export Co Ltd is formed by members of two farmers` associations and a cooperative.

The company had originally planned to export to the UK but owing to the low price the crops would have fetched, it changed plans and signed a contract with a Belgian importer.

On Wednesday, the company filed an application in the Civil Court requesting the issue of a warrant of prohibitory injunction aginst the Director of Agriculture and the Police Commissioner.

The company requested the court to prohibit respondents from denying it access to a consignment of fresh spring crop potatoes currently situated at Ta` Qali. The court was also requested to prohibit respondents from taking possession of the potatoes and from preventing the company from exporting the crop to Belgium.

In its application, the company declared that it had entered into a contract with a Belgian company, Bel`Export, to export a consignment of fresh spring crop potatoes. This contract was subject to the condition that the crop would not be sold in the Netherlands.

The company had subsequently applied for an export licence that was granted by the Trade Department.

However, on Tuesday, when stevedores engaged by the company had gone to collect the crop to transfer it to Malta Freeport , police officers denied them access to the potatoes. The police claimed that they were acting on the instructions of the Director of Agriculture.

The company claimed in its application that the Director of Agriculture was basing his objection on the fact that the Agriculture Department had contracted with a Dutch company and had granted the latter company exclusivity in respect of the potato crop.

The contract entered into by the Agriculture Department was not binding upon the Malta Potato Growers Export Co Ltd, claimed the latter. Furthermore, the export of potatoes to Belgium could not prejudice the Director of Agriculture`s position. However, if the company was denied the right to export its potato crop soon, the merchandise would perish, and the company would be exposed to an action for damages.

The company concluded its application by claiming that respondents` actions were not acceptable in a democratic society.

The application was signed by Dr Michael Sciriha, Dr Aaron Mifsud Bonnici and Dr Philip Galea Farrugia.

Last night Mr Axisa said there may still be time to export the potatoes to Belgium on Sunday if a favourable court decision is issued before.

"After that we will have literally missed the boat. We would have to pay higher duties and get lower prices if the produce reaches Belgium after May 21, and if we don`t make the export at all, we will be sued by the Belgian importers."

He said there was a fifty-fifty chance the potatoes would not spoil.

He insisted that exports to Belgium would not breach the Dutch contract. On the other hand it was the Dutch importer which was in breach of the contract, he said, without elaborating.

Referring to solutions proposed by the government on Wednesday, Mr Axisa said that it was the duty of the government to put the potatoes in cold storage to prevent them from rotting as when the government had prevented the export of the potatoes, it had seized them and locked the containers.

He also said that despite the department`s claims to the contrary, there was evidence to prove that a much larger market than the Dutch one existed: Belgium alone was importing about six to nine thousand tons of potatoes a week from Cyprus, for example.