KEY POINTS:
Penalties against listed chemical company Nufarm and an individual over price-fixing brings fines in New Zealand's largest cartel case to more than $7.5 million, the Commerce Commission said yesterday.
Three Nufarm companies were fined $1.9 million plus costs in the High Court at Auckland for price-fixing and market sharing with competitor Koppers Arch, in a cartel of seven companies which operated between 1998 and 2002.
The fines were substantially lower than they might have been, because the company co-operated and made early admissions, the commission said.
In addition, former Koppers Arch Investments managing director Terrence Mullen was fined $35,000 plus costs after admitting involvement.
The commission has brought court proceedings resulting in fines against seven companies and four individuals in its largest cartel prosecution. Proceedings are also continuing against three overseas residents, former Nufarm executives who are appealing the High Court decision.
Market-wide price fixing between Nufarm and Koppers Arch executives for timber preservative CAA resulted in higher prices for fenceposts, house framing and decking timber.
"Cartels unfortunately do operate in New Zealand," said commission chair Paula Rebstock.
The commission had a policy of giving immunity from prosecution to the first company or individual to alert it to a cartel.
The Nufarm companies admitted to agreeing with Koppers Arch to sharing price information, two simultaneous price rises, not competing on price, and not competing for customers or market share.
Nufarm sold its timber preservative business in 2001 to Osmose, which has also been fined for its involvement in the cartel.
- NZPA
