Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

ComCom to file court proceedings over price fixing

ComCom to file court proceedings against Wrightson, Elders, Rural Livestock over price fixing

By Suze Metherell


July 7 (BusinessDesk) - The Commerce Commission intends to file court proceedings against PGG Wrightson, Elders New Zealand and Rural Livestock by the end of the month, claiming the three fixed fees charged during the implementation of a national livestock tagging scheme.

The consumer protection authority is investigating fees charged during the adoption of the National Animal Identification and Trading Act 2012, commonly known as NAIT. A spokesman for the commission confirmed it intends to file proceedings against the three agricultural companies and five undisclosed individuals before the end of this month.

NAIT is an industry-based initiative which the government helped fund, requiring radio tags for cattle and deer and allowing nationwide tracing of livestock in a bid to bolster New Zealand's response to any biosecurity threats.


Yesterday, Wrightson, the listed rural services firm controlled by China's Agria Corp, revealed the commission believe it had breached the Commerce Act over how it charged fees during the scheme's implementation and that it would "seek a pecuniary penalty from PGW”. Wrightson has cooperated with the investigation and said the penalty, while significant, is unlikely to be “materially price-sensitive”.

Companies convicted of price-fixing can attract a maximum penalty that's the greater of $10 million, or three times the commercial gain, or if that can't be established easily, 10 percent of turnover.

Rural Livestock chairman John Faulks said he didn't know about the investigation and declined to comment. Elders New Zealand also declined to comment.

Wrightson shares were unchanged at 47 cents on the NZX.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Toxicology Tests Planned: Dead Rats Washed Up On Beaches

As many as 600 rats washed up on Westport's North Beach over the weekend to the horror of locals. DOC said they may have been killed by a recent 1080 poison drop 140km away and washed down the Buller River after heavy rain battered the coast. More>>

ALSO:

Transition To Low Carbon: Mineral And Petroleum Resource Strategy

Responsibly Delivering Value – A Minerals and Petroleum Strategy for Aotearoa New Zealand: 2019-2029 has been developed to provide the direction for the sector in the transition to a low carbon and productive, sustainable and inclusive economy. More>>

ALSO:

MethaneSAT: Methane Satellite Mission Control In New Zealand

Mission Control for an international space mission to help tackle climate change will be based in New Zealand, with the Government putting $26 million towards the state-of-the-art satellite...More>>

ALSO:

Real Estate: Late Spring Surge

The continued shortage of quality real estate listings, coupled with record low mortgage interest rates have combined to add some zing to the property market over October. More>>

Wellbeing Stats: Finances Less Terrible And Less Great

According to results from the General Social Survey, the proportion of people who felt they had enough or more than enough money to meet everyday needs increased from 51 percent in 2008 to 63 percent in 2018, Stats NZ said today. More>>

ALSO: