Commodity Levies (Potatoes) Order 2025
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This order is revoked at the close of 30 June 2026, unless earlier confirmed by an Act of Parliament.
2025/59
Commodity Levies (Potatoes) Order 2025
Cindy Kiro, Governor-General
Order in Council
At Wellington this 31st day of March 2025
Present:
Her Excellency the Governor-General in Council
This order is made under section 4 of the Commodity Levies Act 1990—
(a)
on the advice and with the consent of the Executive Council; and
(b)
on the recommendation of the Minister of Agriculture given in accordance with sections 5 and 6 of that Act.
Contents
Order
1 Title
This order is the Commodity Levies (Potatoes) Order 2025.
2 Commencement
This order comes into force on 10 June 2025.
3 Interpretation
In this order, unless the context otherwise requires,—
Act means the Commodity Levies Act 1990
collection agent means a person whose business is or includes—
(a)
buying potatoes for resale, processing in New Zealand, or export:
(b)
selling, processing, or exporting potatoes on behalf of a grower
grower means a person whose business is or includes the commercial production of potatoes
GST means goods and services tax payable under the Goods and Services Tax Act 1985
levy means the levy imposed by clause 4
levy money means money paid or payable under this order as a levy
levy rate means the rate set under clause 14
levy year means,—
(a)
for the first levy year, the period starting on 10 June 2025 and ending on 30 September 2026:
(b)
for the last levy year, the period starting on 1 October 2030 and ending on 9 June 2031:
(c)
in every other case, a 1-year period starting on 1 October and ending on 30 September
notional process value, in relation to potatoes, means the amount of money that, in the opinion of PNZ, a grower would have received if, immediately before the potatoes were processed, the grower had sold the potatoes to a similar processor situated in the same locality
PNZ means Potatoes New Zealand Incorporated
potatoes means potatoes that are grown for commercial purposes—
(a)
in New Zealand; and
(b)
for 1 or more of the following purposes:
(i)
seed:
(ii)
processing:
(iii)
export:
(iv)
the fresh domestic market, which includes—
(A)
markets where food is sold by horticultural producers selling their own horticultural produce only (farmers’ markets); and
(B)
farm-gate sales
process, in relation to potatoes, means to perform any chemical or mechanical process
value of the potatoes means—
(a)
the potatoes’ gross sales value at the first point of sale (exclusive of GST); or
(b)
if the potatoes are processed before the first point of sale, the potatoes’ notional process value (exclusive of GST).
Levy imposed
4 Levy on potatoes
(1)
A levy is imposed on potatoes grown by a grower.
(2)
The levy is payable to PNZ.
Paying levy
5 Growers primarily responsible for paying levy
(1)
Growers are primarily responsible for paying the levy.
(2)
No grower is exempt from paying the levy.
6 Collection agent must pay levy and recover it from growers
(1)
A collection agent must, at the first point of sale, pay the levy (and any GST payable on it) if the collection agent—
(a)
buys potatoes from a grower for resale, processing, or export; or
(b)
sells, processes, or exports potatoes on behalf of a grower.
(2)
A collection agent may recover the levy (and any GST payable on it) from a grower—
(a)
by deducting the amount of the levy (and any GST payable on it) from the payment made to the grower; or
(b)
by recovering the amount of the levy (and any GST paid in respect of it) as a debt due from the grower.
(3)
A collection agent must disclose to a grower the amount of levy money deducted under this order.
(4)
A collection agent who pays the levy to PNZ may deduct from the levy—
(a)
a collection fee of not more than 4% of the amount of levy collected (excluding GST); and
(b)
the GST payable on the collection fee.
7 Conscientious objectors
(1)
A grower or collection agent who objects on conscientious or religious grounds to paying an amount of levy in the manner provided for in this order may pay the amount to the Director-General of the Ministry for Primary Industries.
(2)
The Director-General must pay the amount to PNZ.
8 When levy payable by growers
(1)
This clause specifies when the levy must be paid by a grower who, during a levy payment period, does 1 or more of the following:
(a)
sells potatoes directly to the public:
(b)
processes potatoes:
(c)
exports potatoes.
(2)
The deadlines for payment of the levy in respect of those actions are as follows:
(a)
the due date for payment is the last day of the levy payment period (30 June):
(b)
the latest date for payment is 30 September in the same calendar year as the due date.
(3)
In this clause,—
(a)
a grower exports potatoes on the date on which the grower is paid in full for the potatoes that have been, or will be, exported by the grower:
(b)
levy payment period means a period running from 1 July of a year to 30 June of the following year.
9 When levy payable by collection agents
(1)
The due date for payment of the levy by a collection agent is the date on which the collection agent recovers the levy from the grower.
(2)
The latest date for payment of the levy by the collection agent is the 20th day of the month after the month in which the levy is recovered from the grower.
10 Additional levy for late payment
If a grower does not pay an amount of levy money by the latest date for payment, the grower must pay PNZ,—
(a)
for the first month, an additional levy of 10% of the unpaid amount; and
(b)
for each subsequent month that the amount (or part of the amount) remains unpaid, an additional levy of 2% of the amount of the unpaid levy (including additional levies owing under this clause).
Setting levy rate
11 Basis for calculation of levy
The levy on potatoes payable in a levy year must be calculated on the basis of the value of the potatoes.
12 Levy must be paid at single rate
The levy must be paid at a single rate.
13 Maximum levy rate
(1)
The maximum rate of levy for potatoes is 1% of the value of the potatoes.
(2)
The maximum rate of levy is exclusive of GST.
14 Setting levy rate
(1)
The levy rate for the first levy year is 0.85% of the value of the potatoes.
(2)
For each subsequent levy year, the levy rate must be set by a vote at PNZ’s annual general meeting.
(3)
If a levy rate is not set under subclause (2) before the beginning of a levy year, the levy for that year is payable at the rate last set under this clause.
15 Notifying levy rate
(1)
If any levy rate set under clause 14 differs from the levy rate applying in the previous year, PNZ must, as soon as practicable after setting the rate, notify the new levy rate—
(a)
in the NZGrower & Orchardist; and
(b)
in the PNZ email newsletter; and
(c)
by direct mail to all growers and collection agents known to PNZ; and
(d)
in the Gazette.
(2)
If the NZGrower & Orchardist ceases to be published, the levy rate must be notified in—
(a)
any publication that replaces it; or
(b)
if no publication replaces it, a publication that the Minister of Agriculture specifies for the purposes of this order by notice in the Gazette.
Expenditure of levy money
16 PNZ must spend levy money
PNZ must—
(a)
spend all the levy money paid to it; and
(b)
pending expenditure, invest all levy money until it is spent.
17 Purposes for which levy money may be spent
(1)
PNZ may spend levy money for any or all of the following purposes relating to potatoes:
(a)
research and development:
(b)
market development and promotion:
(c)
development of quality assurance:
(d)
education and training:
(e)
information and communication:
(f)
grower representation:
(g)
day-to-day administration of PNZ:
(h)
protection or improvement of plant health:
(i)
readiness and response to biosecurity threats.
(2)
See section 10(1) of the Act, which prohibits the use of levy money for commercial or trading activities.
18 Consulting on spending levy money
(1)
Every levy year, PNZ must consult growers on how it proposes to spend levy money.
(2)
The consultation must be carried out by—
(a)
consulting growers at—
(i)
PNZ’s annual general meeting; or
(ii)
a special general meeting called for the purpose of carrying out the consultation; and
(b)
consulting PNZ board members who are elected grower representatives.
Returns, records, and confidentiality
19 Returns
Return must be given with levy payment
(1)
When a grower or collection agent pays levy money to PNZ, the grower or collection agent must give PNZ a written return that—
(a)
states the value of the potatoes to which the payment relates; and
(b)
identifies the grower of the potatoes.
Return must be given on request
(2)
(3)
If PNZ requests information from a grower or collection agent under subclause (2), the grower or collection agent must give PNZ a written return of the information as soon as is reasonably practicable after receiving the request.
20 PNZ must keep records
PNZ must keep records of the following for each levy year:
(a)
each amount of levy money paid to it; and
(b)
the date on which each amount of levy money was received; and
(c)
the person who paid each amount of levy money; and
(d)
how (if at all) levy money was invested; and
(e)
how levy money was spent.
21 Growers must keep records
(1)
A grower who pays levies directly to PNZ must keep records of—
(a)
the amount of the levy paid; and
(b)
the sales that the levies were deducted from.
(2)
A grower whose levies are paid by a collection agent must keep records of—
(a)
the amount of the levy paid; and
(b)
the sales that the levies were deducted from; and
(c)
the name and address of the collection agent.
22 Collection agents must keep records
Collection agents must keep records of—
(a)
the amount of the levy paid: and
(b)
the sales that the levies were deducted from; and
(c)
the name, trading name, and address of the grower.
23 Records must be kept for at least 2 years
The records required by clauses 20 to 22 must be kept for at least 2 years from the date of payment of the levy to which they relate.
24 Confidentiality of information
(1)
This clause applies to information obtained—
(a)
under or because of this order; or
(b)
under the Act in relation to this order.
(2)
A person must not disclose information to anyone other than an officer, employee, or agent of PNZ unless the disclosure is—
(a)
the giving of evidence in any legal proceedings taken in relation to this order; or
(b)
required by law; or
(c)
the production of records or accounts under section 17(1) of the Act; or
(d)
the production of any statement under section 25 of the Act.
(3)
PNZ may disclose information—
(a)
for statistical or research purposes that do not involve the disclosure of personal information; or
(b)
for the purpose of invoicing or collecting the levy; or
(c)
if every identifiable person to whom the information relates consents; or
(d)
as required by law.
Dispute resolution
25 Mediation of disputes
(1)
This clause applies to a dispute about—
(a)
whether a person is required to pay the levy; or
(b)
the amount of levy payable.
(2)
A party to the dispute may ask the President of the Arbitrators and Mediators Institute of New Zealand Incorporated to appoint a person to resolve the dispute by mediation, in which case the provisions in the Schedule apply.
Compliance audits
26 Remunerating auditors
PNZ must remunerate a person appointed as an auditor under section 15 of the Act at a rate determined by the Minister of Agriculture after consultation with PNZ.
Revocation
27 Commodity Levies (Potatoes) Order 2019 revoked
The Commodity Levies (Potatoes) Order 2019 (LI 2019/87) is revoked.
Schedule Mediation of disputes
1 Appointment of mediators
(1)
If asked by a party to a dispute under clause 25(2) of this order, the President of the Arbitrators and Mediators Institute of New Zealand Incorporated (or a person authorised by the President) may appoint a person to resolve the dispute by mediation.
(2)
The mediator’s appointment ends if—
(a)
the parties to the dispute resolve it by agreement; or
(b)
the mediator resolves the dispute under clause 7 of this schedule.
2 Remuneration of mediators
(1)
A mediator is to be paid remuneration (by way of fees and allowances) as agreed by the parties to the dispute.
(2)
If the parties to the dispute cannot agree on the mediator’s remuneration, the President of the Arbitrators and Mediators Institute of New Zealand Incorporated (or a person authorised by the President) must—
(a)
fix an amount or several amounts to be paid to the mediator as remuneration; and
(b)
specify the amount (if any) that each party must pay.
(3)
Each party must pay to the mediator any amount fixed by the President (or authorised person) and specified as an amount to be paid by that party.
3 Conference to resolve dispute
(1)
A mediator may organise and preside at 1 or more conferences between the parties to a dispute to resolve the dispute.
(2)
Every conference is to be held on a day, and at a time and place, fixed by the mediator and notified in writing to the parties.
4 Attendance at conferences
(1)
Only the mediator and the parties to a dispute may attend a conference, unless subclause (2) applies.
(2)
A mediator may allow a representative of any party to a dispute to attend a conference if the mediator is satisfied that it is appropriate to do so in all the circumstances.
5 Right to be heard
The following persons may be heard at a conference:
(a)
every party to the dispute; and
(b)
every representative of a party allowed by the mediator to attend the conference.
6 Evidence
(1)
A mediator may hear and take into account any relevant evidence or information, whether or not it would be admissible in a court of law.
(2)
A mediator may, on their own initiative,—
(a)
seek and receive any evidence that they think desirable to resolve the dispute; and
(b)
make any investigations and inquiries that they think desirable to resolve the dispute.
(3)
A mediator may require any person giving evidence at a conference to verify the evidence by statutory declaration.
7 Mediator may resolve dispute in certain cases
(1)
A mediator may resolve a dispute for the parties if—
(a)
the dispute is not resolved at a conference by agreement; or
(b)
the mediator believes that the parties are unlikely to resolve the dispute, whether or not the parties confer directly.
(2)
A mediator who resolves a dispute under subclause (1) must give each of the parties written notice of the mediator’s decision and the reasons for the decision.
(3)
The parties must comply with the mediator’s decision.
8 Costs of mediation
Each party to a dispute must pay its own costs in relation to the mediation.
9 Appeal to District Court
(1)
A party to a dispute who is dissatisfied with the decision made by a mediator under clause 7 of this schedule may appeal to the District Court against the decision.
(2)
The appeal must be brought by filing a notice of appeal—
(a)
within 28 days after the decision is made; or
(b)
within any longer time frame that a District Court Judge allows.
(3)
The Registrar of the court must—
(a)
fix the time and place for the hearing of the appeal; and
(b)
notify the time and place to the appellant and the other parties to the dispute; and
(c)
serve a copy of the notice of appeal on every other party to the dispute.
(4)
Every party to the dispute may appear and be heard at the hearing of the appeal.
(5)
The District Court may confirm, vary, or reverse the mediator’s decision.
(6)
The filing of a notice of appeal does not operate as a stay of any process for the enforcement of the mediator’s decision.
Rachel Hayward,
Clerk of the Executive Council.
Explanatory note
This note is not part of the order but is intended to indicate its general effect.
This order, which comes into force on 10 June 2025, imposes a levy on potatoes grown by growers.
The levy must be paid to Potatoes New Zealand Incorporated by—
growers who sell potatoes directly to the public, process potatoes, or export potatoes; and
collection agents who buy potatoes from a grower for resale, processing, or export or who sell, process, or export potatoes on a grower’s behalf.
Growers are primarily responsible for paying the levy. Collection agents recover the levy they pay in respect of potatoes from the grower of the potatoes.
Before this order, a levy was imposed on potatoes by the Commodity Levies (Potatoes) Order 2019. This order revokes and replaces that order. The revocation does not affect amounts of levy money that became payable under that order before it was revoked.
This order must be confirmed by an Act before the close of 30 June 2026. If it is not confirmed, it will be revoked on the close of that date (see subpart 3 of Part 5 of the Legislation Act 2019). If the order is confirmed, it will be revoked at the close of 9 June 2031, unless it is earlier revoked or extended under section 13(2) of the Commodity Levies Act 1990.
Date of notification in Gazette: 3 April 2025.
This order is administered by the Ministry for Primary Industries.
Amendments not yet incorporated
The most recent version of this secondary legislation does not yet have amendments incorporated from: