Dick Pratt Fined $36 million!
Posted: Tue Oct 16, 2007 11:35 amRICHARD Pratt, Australia's third richest man, has been fined $36 million in the Federal Court after admitting to a conspiracy to fix prices in the cardboard market.
The penalty is more than double the previous record penalty for anti-competitive conduct.
Mr Pratt and his Visy group had faced a fine of up to $40 million after they acted improperly to share the $2 billion corrugated cardboard market with rival Amcor.
It is claimed the two companies made up to $700 million from their conspiracy to agree on regular price increases.
Mr Pratt and Visy made a private settlement with the Australian Competition and Consumer Commission (ACCC), but it was still up to Federal Court judge Justice Peter Heerey to decide if it was a sufficient punishment.
Details of an agreed statement of facts between Mr Pratt and the ACCC, which details exactly what Mr Pratt is admitting to, will be released today.
While Mr Pratt has apologised for his actions, he has also tried to distance himself from any wrongdoing.
In a statement to customers, Mr Pratt admitted to having lunch with Amcor's former chief executive Russell Jones "when he invited me" and accepted responsibility for "comments made by me" during the meeting.
Mr Pratt said his executives had erred in meeting with rival Amcor but they were just trying to out-manoeuvre their rival and were motivated by a desire to take advantage of Amcor.
The company regretted what happened and its poor understanding of the complexities of the Trade Practices Act, the statement said.
Mr Pratt is a renowned philanthropist and president of the Carlton Football Club.
In 1998 he was awarded the nation's highest honour, the Companion of the Order of Australia.
Amcor won immunity from price-fixing charges because it blew the whistle on the secret deal.
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That may put a dent in Carlton's seeminlgy bottomless money pit!!
The penalty is more than double the previous record penalty for anti-competitive conduct.
Mr Pratt and his Visy group had faced a fine of up to $40 million after they acted improperly to share the $2 billion corrugated cardboard market with rival Amcor.
It is claimed the two companies made up to $700 million from their conspiracy to agree on regular price increases.
Mr Pratt and Visy made a private settlement with the Australian Competition and Consumer Commission (ACCC), but it was still up to Federal Court judge Justice Peter Heerey to decide if it was a sufficient punishment.
Details of an agreed statement of facts between Mr Pratt and the ACCC, which details exactly what Mr Pratt is admitting to, will be released today.
While Mr Pratt has apologised for his actions, he has also tried to distance himself from any wrongdoing.
In a statement to customers, Mr Pratt admitted to having lunch with Amcor's former chief executive Russell Jones "when he invited me" and accepted responsibility for "comments made by me" during the meeting.
Mr Pratt said his executives had erred in meeting with rival Amcor but they were just trying to out-manoeuvre their rival and were motivated by a desire to take advantage of Amcor.
The company regretted what happened and its poor understanding of the complexities of the Trade Practices Act, the statement said.
Mr Pratt is a renowned philanthropist and president of the Carlton Football Club.
In 1998 he was awarded the nation's highest honour, the Companion of the Order of Australia.
Amcor won immunity from price-fixing charges because it blew the whistle on the secret deal.
************************************************************************
That may put a dent in Carlton's seeminlgy bottomless money pit!!
