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Visy group chairman Richard Pratt has again apologised for his packaging and paper company's involvement in price fixing with rival Amcor in the A$2 billion ($2.4 billion) cardboard market.
The billionaire's company is facing a possible record penalty of A$36 million for the anti-competitive behaviour, the Federal Court in Melbourne heard on Monday.
Speaking outside court, Pratt said he accepted full responsibility for his company's behaviour.
"I know a lot more now than I knew then, but I sincerely regret what happened and I accept ultimate responsibility," he said.
In a hearing before Judge Peter Heerey, Pratt and Visy admitted responsibility for the illegal price fixing. But Visy also told the court the activity did not cause losses to its customers. The Australian Competition and Consumer Commission has asked the court to impose a A$36 million fine on Pratt and Visy.
Smaller fines of A$1.5 million and A$500,000 respectively should also be imposed on Visy chief executive Harry Debney and former general manager Rod Carroll, the ACCC said. In a defence submission, Jonathan Beach, QC said Visy acknowledged its liability, accepted its responsibility and repented its contravention of the Trade Practices Act.
But Beach said price increases under the cartel, that ran between 2000 and 2004, followed a price war between Visy and Amcor. "It's not an excuse but it explains the genesis of the arrangement so far as Visy is concerned," he told the court.
"Our position is that increases would have taken place in any event."
Earlier, Peter Jopling QC, for the ACCC, told the court collusion between Visy and Amcor resulted in "very serious contraventions" of the act and had been "carefully and deliberately concealed".
"The collusion involved both price fixing and market sharing measures," he said.
An agreed statement of facts handed to the court covers 37 contraventions of the Trade Practices Act by Visy affecting some of Australia's biggest food and beverage companies, including Ingham's, Goodman Fielder, Foster's Group, Nestle and Cadbury Schweppes. Jopling said cardboard prices had risen by an overall 20 per cent from 2000-04.
The ACCC barrister also rejected a public apology issued last week by Pratt and Visy.
In a letter, Pratt said his senior executives had been motivated by a desire to take advantage of their arch rival Amcor.
As well, the Visy senior executives involved did not properly understand the complexities of the Trade Practices Act.
But Jopling asked Justice Heerey to reject those claims.
Jopling said Visy's "contraventions had nothing to do with the poor appreciation of the law".
Outside court, Pratt paused briefly to issue another apology.
But he did not respond to questions when asked why Debney remained in his position at Visy, despite admitting his role in the illegal activity.
Amcor, which blew the whistle on the price fixing to the competition watchdog, dismissed senior executives who set up the deal with Visy.
The ACCC legal action follows a year-long investigation into price fixing in Australia's A$2 billion cardboard box industry from 2000-04.
Justice Heerey reserved his decision on penalties to a date to be fixed.
- AAP
