NZX-listed rural services firm PGG Wrightson and stock and station company Rural Livestock have agreed to pay $3.2 million in penalties and costs after settling price-fixing claims from the introduction of the National Animal Identification Tracing Act 2012.
In separate High Court hearings in Auckland, Wrightson was fined $2.7 million and agreed to pay $50,000 in costs to the Commerce Commission, while Rural Livestock was handed a $475,000 penalty, the regulator said in a statement.
The commission said its investigation found three anti-competitive agreements to set fees under the NAIT act by the members of the New Zealand Stock and Station Agents' Association, including Wrightson and Rural Livestock. Those agreements included fixing the price of tagging cattle at sale yards, increasing yard fee charges, and hiking stock and station agent charges by introducing an administration fee for NAIT-related costs.
"Both companies subsequently admitted their conduct breached the Commerce Act and reached separate settlement agreements with the commission," it said.
In a separate statement, Wrightson said the payment reflected the company's role in "coordinating much of the industry response and planning relating to the implementation of NAIT including errors made in reaching arrangements affecting price in breach of the Commerce Act," and also included a discount for the firm's cooperation with the regulator.
"It was a tough lesson for the business to learn and was especially disappointing given all the good work that was done facilitating the implementation of the NAIT scheme, an 'industry good' initiative", chief executive Mark Dewdney said. "With the benefit of hindsight, more care should have taken in respect of matters relating to the fees imposed when NAIT came into effect."
