$7.5m Penalties In NZ’s Biggest Cartel Case

13 February 2208
New Zealand’s largest cartel case has resulted in further heavy penalties for companies and individuals involved in the timber preservatives industry.
Three Nufarm companies that operated the Fernz Timber Protection brand have been fined $NZ1.9 million for price-fixing and market sharing with competitor Koppers Arch, the Commerce Commission has announced.
Terrence Mullen, formerly the managing director of Koppers Arch Investments Pty Limited, was also fined $35,000 after admitting his personal involvement in the cartel.
The cartel, which involved seven companies, operated from 1998 to 2002.
Mark Greenacre, a senior executive of the Nufarm companies, was responsible for a number of breaches of the Commerce Act from mid-1998 to January 2001. The most serious of these was fixing market-wide price rises in 1998 and 2000 with Koppers Arch executives for CCA, a timber preservative product. As a result, farmers paid higher prices for fence posts and homeowners paid more for their house framing and decking timber.
Mullen, who was based in Australia, encouraged the conduct through his interactions with the other cartel participants and by directing agents in New Zealand.
It is the Commerce Commission’s largest cartel prosecution to date. The fines bring the total penalties handed down so far in both civil and criminal actions, to more than $NZ7.5 million. Those fines are against the seven companies as well as four individuals. Proceedings are continuing against three overseas resident individuals, who had unsuccessfully challenged the jurisdiction of the High Court and who are appealing the High Court decision. Two of these defendants are former Nufarm executives.
Commerce Commission chair Paula Rebstock says the commission will continue to strongly pursue cartels including senior executives and companies based overseas involved in price-fixing and other cartel conduct in New Zealand. It will also pursue companies that have exited the market.

ATIF Strengthens Voice For Timber Importers

Improved national cohesion, enhanced policy delivery and strengthened technical performance by timber importers were major factors behind the recent restructure and broadening of the Australian Timber Importers Federation Inc. (ATIF)
Newly elected president Mr Norm Long said ATIF was absolute in its willingness to work with the federal Government to progress policy prescriptions pertinent to the importation of timber products from both tropical and temperate regions.
Long, managing director of Oceania Forest Products, said ATIF would also work with the Government to establish the legality of imported forest products and to promote the production and purchase of legally-sourced forest products.
“The ATIF will use its expertise, the technical knowledge of member companies and its contractual arrangements with private sector experts to provide the range of skills required to advance policy development and implementation tasks,” Long said.
Long noted the importance of a continuing strong relationship with the Australian Quarantine Inspection Service (AQIS) and other relevant Government agencies on timber import regulations and procedures.
He said ATIF would advance the preparation of a responsible timber purchasing policy; prepare supply country profiles and areas of risk in terms of policy compliance; establish a dialogue with other national forest industry entities; and strengthen its interaction with relevant federal Government agencies.
He confirmed ATIF would reinforce its role as the peak body for matters related to timber imports and would seek to coordinate activities and input from other industry associations.

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