By IRENE CHAPPLE
Giltrap City Toyota has been fined $150,000 for price-fixing after an eight-year battle with the Commerce Commission.
The fine, for breach of the Commerce Act, was substantially higher than penalties imposed on seven other corporate defendants involved in the scheme, who each paid $50,000 in 1996.
It was also
far more than the $25,000 deemed an appropriate fine by Giltrap.
Giltrap argued that other factors, like publicity, meant it should pay less than the other defendants, who admitted breaching the act. Giltrap did not admit culpability and defended the charge. But it was found guilty late last year and had since been arguing for a minimum fine.
Justice Susan Glazebrook said the need for deterrence and the financial resources of Giltrap City Toyota could affect the penalty.
"On the one hand, the company that has transgressed is Giltrap City Toyota, with no allegation that the higher management of the wider Giltrap group were involved," she said.
"On the other hand, the resources of the wider Giltrap group would be at Giltrap City Toyota's disposal."
Giltrap City Toyota is owned by Colin Giltrap, one of New Zealand's richest men, believed to be worth $215 million.
The Commerce Commission had sought a penalty of $200,000 to $250,000, but Justice Glazebrook said she had concerns about that level of penalty, as the differential with other defendants would be too high.
Commission chair John Belgrave said the commission was very pleased with the fine imposed, which emphasised that price-fixing agreements were one of the most serious types of anti-competitive behaviour.
Total penalties in the case had now reached $500,000.
The price-fixing arrangement in 1993 related to maximum discounts on new cars being sold by the dealers.
The deal never went ahead, and the Giltrap City Toyota principal dealer at the time, Andrew MacKenzie, has since left the company.
