Maori fish farm collapses under debt mountain

NEW ZEALAND - A kingfish farm set up by Maori in the Far North two years ago is folding with debts of $7.6 million.

Parengarenga Fish Farm is shutting down the operation it established by the Parengarenga Harbour, citing financial troubles and constant problems with its land-based aquaculture plant.

The closure has caught many of the 2500 shareholders by surprise. Until recently the fish farm, a Parengarenga Incorporation subsidiary, had been hailed as a prime example of Maori economic development in the North.

Incorporation chairman Winiata Brown, of Te Kao, told shareholders that the venture had attracted too few investors, the plant built by IAA of Denmark had design faults, and ongoing costs were exorbitant.

"Legal action against IAA must be taken in Denmark under Danish legal jurisdiction and we simply do not have the resources to initiate or maintain such action," he said.

A funding shortfall due to a major investor withdrawing when Parengarenga Fish Farm was established had caused concern. Source: New Zealand Herald