Four
senior managers at PGG Wrightson and one from Elders have been fined for their
involvement in price-fixing when setting fees for implementation of a national
animal tagging system. While they had no
intention of price fixing said Justice Heath, colluding on standard prices across
the industry had this effect in breach of the Commerce Act.
Wrightson general manager livestock Nigel
Thorpe was fined $25,000 together with fellow Wrightson employees Donald Baines
(fined $20,000), Douglas Cartridge ($20,000) and Andrew Clark ($15,00). Elders managing director Stuart Chapman was
fined $25,000. In addition, each agreed
to pay $5000 towards Commerce Commission costs.
The maximum fine for an individual breaching the Act is $500,000.
Commerce Act breaches arose from informal
discussions at a high level within the stock and station industry over
cost-recovery following legislation requiring all cattle and deer passing
through saleyards be tagged with radio frequency identification devices.
Justice Heath said Mr Thorpe and Mr
Chapman both held senior positions in their respective companies and were in a
position to give directions to other staff about pricing for tagging system implementation. Messrs Baines, Cartridge and Clark were at a
lower level within Wrightsons but each played a significant role in determining
industry-wide standard pricing.
Last year, PGG Wrightson as a corporate
admitted liability for price fixing. It was
fined $2.7 million. While Elders
managing director Stuart Chapman admitted personal responsibility, Elders Rural
as a corporate denies it was a party to any price fixing. Legal action is still pending against Elders
Rural.
Commerce
Commission v. PGG Wrightson – High Court (5.12.16)
17.005