ComCom files proceedings over animal tags

The charges were laid over the adoption of the National Animal Identification and Trading Act 2012 (NAIT) tagging scheme.

The Commerce Commission has filed court proceedings against PGG Wrightson, Elders New Zealand and five individuals for alleged price fixing in connection with the introduction of the National Animal Identification Tracing Act 2012 (NAIT Act).

The Commission alleged they had breached the Commerce Act by establishing three pricing agreements prior to the NAIT Act coming into force on 1 July 2012.

The individuals involved were all current or former employees of PGG Wrightson and Elders, The commission said in a statement today.

In proceedings filed in Auckland High Court on Friday, the Commission alleged agreements were made to:
• fix the price of tagging un-tagged cattle at sale yards
• increase yard fee charges
• increase stock and station agent charges by introducing an administration fee for NAIT-related costs.

The commission was also in discussions with a third company, Rural Livestock, the statement said.

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.

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 per cent of turnover.

- Additional reporting: BusinessDesk