Raids to save documents from shredder

The "very real and credible threat" of document destruction by alleged cartel members was the background to raids last week on Carter Holt Harvey and Australian firm Visy, the Commerce Commission said.

The claim was made by commission chairwoman Paula Rebstock in an affidavit sworn for the Australian Federal Court on December 8 and linked to probes in Australia and New Zealand into the corrugated cardboard box market.

The Australian Competition and Consumer Commission is running one investigation into anti-competitive behaviour and the commission another.

It emerged yesterday that Rebstock requested secrecy, telling the Australian court that rivals of Amcor could conceal or destroy evidence if they learned Amcor had gained leniency by agreeing to co-operate with investigators.

She said: "The commission's experience is that there is a very real and credible threat that documents or information held in New Zealand and vital to the commission's ability to prosecute the other cartel members will be destroyed."

CHH has about 36 per cent of the New Zealand market, Visy 30 per cent, Amcor the rest.

The commission raided CHH and Visy's offices, seizing documents and computers, on December 10.

It earlier granted Amcor immunity if it helped with inquiries but, in her affidavit, Rebstock complained that Amcor had not been able to provide any information because of Australian Federal Court orders.

Those orders relate to a case between Amcor and five former executives alleged to have taken company property when they quit.

Rebstock said she understood Amcor was seeking the court's leave to give information shedding light on possible serious breaches of the Commerce Act which would allow the identification of parties who were part of an "alleged cartel".

CHH general counsel Nic Short said the firm did not believe there was any basis for what the commission seemed to be alleging while a Visy spokesman said the company had nothing to fear from any investigation.