Any suggestion that farmers will pay the $5.5 million penalties imposed on nine North Island meat companies yesterday is strongly refuted by the Commerce Commission.

Commission General Manager John Feil said that the meat industry is now more competitive and without the continued existence of cartel behaviour the companies will simply lose market share if they try to pass this cost onto farmers.

Farmers should continue to compare prices paid by different companies and decide for themselves what is the best deal.

Shareholders in these companies, including farmers, might well want to ask their directors how this anti-competitive behaviour was allowed to occur and what has been done to prevent it occurring again.

The Commission is also concerned at suggestions that the companies activities were merely "technical breaches", or reflected a narrow definition of anti-competitive conduct.

Justice Smellie's decision clearly states that the companies admitted that:

"From October 1992 until April 1995 regular meetings or conference calls occurred between the defendants. During these meetings or calls the defendants discussed maximum premiums and maximum schedule prices for livestock procurements and arrived at understandings which were in breach of s.27(1) of the Act.

"In all approximately 90 such meetings occurred usually on a weekly basis."

Mr Feil said that by anyone's definition this is serious, persistent and blatant anti-competitive conduct, well deserving the penalties imposed.

Media contact: General Manager John Feil

Phone work (04) 498 0963

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz