Email-wiping may go to police

By PAM GRAHAM

The Commerce Commission is considering referring the destruction of emails by Tranz Rail to the police.

Tranz Rail admitted to the commission in March last year that its chief financial officer, Mark Bloomer, directed the destruction of emails in October or November 2000.

The police would examine whether the course of justice was perverted under the Crimes Act.

Commission spokeswoman Jackie Maitland said a decision on referral would be made in the next few days.

The commission highlighted the issue as it released a report that found no evidence that Tranz Rail had behaved anti-competitively against rival Fast Cat Ferries (FCF) in 1999 and 2000.

The probe was into allegations that Tranz Rail agreed to charter a fast ferry from Australian company Incat if Incat withdrew the Top Cat ferry from FCF and also that Tranz Rail cut prices below cost to put Top Cat out of business.

FCF started fast ferry services across the Cook Strait in May 1999 and they lasted until November 2000. The company went into liquidation in August 2001.

The commission said the withdrawal of the Top Cat and chartering of a ferry from Incat by Tranz Rail could be explained by circumstances unrelated to any entering into an anti-competitive arrangement.

Tranz Rail denied the existence of such a deal and the commission obtained no direct evidence of it.

The report said FCF encountered financial difficulties from the outset and in June 1999 Incat took an equity stake in FCF and was involved in the management of the company.

In September 2000, the Marlborough District Council imposed speed restrictions which slowed the crossing time of fast ferries, reducing the number of return trips in a day and the economics of the business.

From about the end of 1999, Tranz Rail began lowering ferry rates for commercial vehicles.

The commission report says that Bloomer directed the destruction of emails and other documents that contained references to the Top Cat and Tranz Rail's arrangement with Incat for the charter of Hull 057.

Bloomer is an Australian and his resignation in April 2002 was put down to his family's wish to go home.

He declined to comment on the report yesterday.

Commission general counsel Peter Taylor said companies should not destroy documents unless in the normal course of their business.