In 2004, shortly after lobbying the government to pass the Industrial Hemp Act, Hemp Resources applied for an industrial hemp licence from the registrar of hemp, Mark Holland.
The licence was denied on grounds that two of the company's directors, Kim Hough and Luu Phoc Nguyen, had minor criminal convictions.
But the convictions were more than 10 years old and quashed under the Spent Convictions Act.
Hemp Resources received its licence in February 2006.
But the company's uphill battle to establish a hemp industry in WA _ worth a potential $1 billion a year _ did not end there.
Hemp Resources has conducted a number of trial plantings with the Agriculture Department using patented hemp seed varieties from other countries, including China.
A successful trial in Kununurra last year yielded more than six tonnes of seed that was to be used for commercial plantings.
The trial cost $172,000, which Hemp Resources has refused to pay. The department is now trying to reclaim its costs through the District Court.
But on Monday, Hemp Resources filed a counter-claim seeking $5 million in lost earnings and $250 million in damages.
The counter-claim alleges the department engaged in ``dishonest and misleading conduct''.
As part of its defence against the department, Hemp Resources stated at a recent court hearing that the department had failed to dispose properly of a trial crop of Canadian hemp that cross-pollinated _ and effectively contaminated _ a Chinese variety growing next to it during the Kununurra trials.
Hemp Resources told the court that the six tonnes of seed it harvested were now useless for breeding or planting purposes.
The counter-claim accuses the department of failing to recognise Hemp Resources' exclusive rights over the high-yielding Chinese hemp seed variety ``Yunma'' and failing to refer an alleged fraud to the police.
The alleged fraud concerns the importation and trial growths of Yunma seeds by a former Hemp Resources employee, Donald Khoo, who runs Dharmic Pty Ltd.
Hemp Resources claims exclusive rights over the Yunma variety in Australia and New Zealand.
The counter-claim alleges the Agriculture Department facilitated the importation of the seeds by Dharmic and then helped it conduct trial growths on the department's plots in Bentley without permission.
While the department refused to comment on the case, Mr Khoo claimed his company acquired the seeds legally from Yunnan Industrial Hemp in China.
``I got the certificate directly from Yunnan Industrial Hemp and my imports came directly from Yunnan Industrial Hemp and I've got an invoice from Yunnan Industrial Hemp,'' Mr Khoo said.
Hemp Resources' counter-claim states Yunnan Industrial Hemp ``wrote back confirming they had not supplied provided seed to Dharmic Pty Ltd'' and that ``Dharmic Pty Ltd provided the document without our formal authorisation''.
Hemp Resources claims it has lost ``up to 15 growing seasons'' because of the Agriculture Department's ``actions''.
``We've been deprived of this industry since the Industrial Hemp Act was implemented,'' Mr Hough said.
``We were going to be growing it, dehulling (seed) ... and producing hemp paper.
``We should have, and should have had several years ago now, an operating hemp papermill here in WA.
``But because of what's been going on over so many years, we haven't.''
Mr Hough said potential investors were being sidelined by the dispute.
``We've got investors ready to invest in the company, but we can't take their money while there's a dispute as to whether we have the rights in Australia and New Zealand or not to the best seed in the world,'' he said.
The hearing will resume in the District Court on August 6.
News Hawk- Ganjarden 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: PerthNow
Author: Cortlan Bennett
Contact: PerthNow
Copyright: 2009 The Sunday Times
Website: Hemp Resources Sues WA Government For $255m
The licence was denied on grounds that two of the company's directors, Kim Hough and Luu Phoc Nguyen, had minor criminal convictions.
But the convictions were more than 10 years old and quashed under the Spent Convictions Act.
Hemp Resources received its licence in February 2006.
But the company's uphill battle to establish a hemp industry in WA _ worth a potential $1 billion a year _ did not end there.
Hemp Resources has conducted a number of trial plantings with the Agriculture Department using patented hemp seed varieties from other countries, including China.
A successful trial in Kununurra last year yielded more than six tonnes of seed that was to be used for commercial plantings.
The trial cost $172,000, which Hemp Resources has refused to pay. The department is now trying to reclaim its costs through the District Court.
But on Monday, Hemp Resources filed a counter-claim seeking $5 million in lost earnings and $250 million in damages.
The counter-claim alleges the department engaged in ``dishonest and misleading conduct''.
As part of its defence against the department, Hemp Resources stated at a recent court hearing that the department had failed to dispose properly of a trial crop of Canadian hemp that cross-pollinated _ and effectively contaminated _ a Chinese variety growing next to it during the Kununurra trials.
Hemp Resources told the court that the six tonnes of seed it harvested were now useless for breeding or planting purposes.
The counter-claim accuses the department of failing to recognise Hemp Resources' exclusive rights over the high-yielding Chinese hemp seed variety ``Yunma'' and failing to refer an alleged fraud to the police.
The alleged fraud concerns the importation and trial growths of Yunma seeds by a former Hemp Resources employee, Donald Khoo, who runs Dharmic Pty Ltd.
Hemp Resources claims exclusive rights over the Yunma variety in Australia and New Zealand.
The counter-claim alleges the Agriculture Department facilitated the importation of the seeds by Dharmic and then helped it conduct trial growths on the department's plots in Bentley without permission.
While the department refused to comment on the case, Mr Khoo claimed his company acquired the seeds legally from Yunnan Industrial Hemp in China.
``I got the certificate directly from Yunnan Industrial Hemp and my imports came directly from Yunnan Industrial Hemp and I've got an invoice from Yunnan Industrial Hemp,'' Mr Khoo said.
Hemp Resources' counter-claim states Yunnan Industrial Hemp ``wrote back confirming they had not supplied provided seed to Dharmic Pty Ltd'' and that ``Dharmic Pty Ltd provided the document without our formal authorisation''.
Hemp Resources claims it has lost ``up to 15 growing seasons'' because of the Agriculture Department's ``actions''.
``We've been deprived of this industry since the Industrial Hemp Act was implemented,'' Mr Hough said.
``We were going to be growing it, dehulling (seed) ... and producing hemp paper.
``We should have, and should have had several years ago now, an operating hemp papermill here in WA.
``But because of what's been going on over so many years, we haven't.''
Mr Hough said potential investors were being sidelined by the dispute.
``We've got investors ready to invest in the company, but we can't take their money while there's a dispute as to whether we have the rights in Australia and New Zealand or not to the best seed in the world,'' he said.
The hearing will resume in the District Court on August 6.
News Hawk- Ganjarden 420 MAGAZINE ® - Medical Marijuana Publication & Social Networking
Source: PerthNow
Author: Cortlan Bennett
Contact: PerthNow
Copyright: 2009 The Sunday Times
Website: Hemp Resources Sues WA Government For $255m
