Former Tranz Rail executive hits back at 'Enron' claims

By PAUL PANCKHURST

The former Tranz Rail executive named by the Commerce Commission in connection with the "Enron-like" destruction of documents hit back yesterday.

Former chief financial officer Mark Bloomer said the commission never spoke to him before issuing last week's damning statements.

He said the Enron comparison was ridiculous and damaging to his reputation.

Commission general counsel Peter Taylor confirmed that Bloomer had not been contacted but would not comment on whether that was unfair.

The commission's allegations came last week in a report that found no evidence of anti-competitive behaviour by Tranz Rail against rival Fast Cat Ferries in 1999 and 2000.

It said Bloomer had directed the destruction of emails and other documents that, among other things, contained references to ferry business Top Cat.

Bloomer, an Australian, is back in his homeland after leaving Tranz Rail in 2002.

He told the Business Herald that he ordered the deletion of an email circulating among managers and staff about Top Cat because it was tasteless - rather than damaging to Tranz Rail.

"I cannot recall the precise words of the email but, in brief, it involved light-hearted remarks being exchanged over the poor trading performance of Top Cat."

Recipients "commented in a similar vein".

"Although light-hearted, on reflection I did not believe it was appropriate for managers and staff to be sending emails of that nature to each other."

He said he asked his secretary to arrange for all copies of the email to be deleted from the files of all who were parties to the various exchanges.

"This was done at a time when the company had no knowledge or expectation that the commission would commence an investigation."

Bloomer said the deletions were not secretive and not to conceal information.

He believed that, given the chance to explain, the commission would have recognised the "innocent nature" of his actions and would not have made "alarmist statements".

The commission probe was into allegations that Tranz Rail agreed to charter a fast ferry from Australian company Incat if Incat withdrew the Top Cat ferry from FCF and also that Tranz Rail cut prices below cost to put Top Cat out of business.

FCF started fast ferry services across Cook Strait in May 1999 and they lasted until November 2000.

The company went into liquidation in August 2001.

The commission said the withdrawal of the Top Cat and chartering of a ferry from Incat by Tranz Rail could be explained by circumstances unrelated to any entering into an anti-competitive arrangement.

The commission report says Bloomer directed the destruction of emails and other documents that contained references to the Top Cat and Tranz Rail's arrangement with Incat for the charter of Hull 057.

Bloomer would not say what he was now doing in Australia.