Penalties and costs of $719,000 were imposed by the Federal Court, Brisbane on seven individuals and companies involved in the Queensland fire protection industry. The penalties, together with those ordered in December 1999, March 2000 and June 2000, amount to total penalties of more than $8.7 million in this case to date.
The Australian Competition and Consumer Commission alleged that an anti-competitive arrangement existed for many years in the markets for both installation of fire sprinkler systems throughout Queensland, and fire alarm systems in and around Brisbane. The ACCC alleges that at regular meetings the fire protection companies agreed between themselves to allow certain tender projects to be won by participants, and agreed on tender prices to be submitted for the projects to ensure the selected company won the tender.
The Federal Court found that The Asset Group (Brisbane) Pty Ltd and Firevac Pty Ltd engaged in price fixing and market sharing conduct in breach of section 45 of the Trade Practices Act 1974.
The Federal Court has already dealt with 38 companies and individuals, at hearings in December 1999, March 2000 and June 2000, penalising these respondents for their involvement in the price fixing and market-sharing arrangements. Today's hearing relates to the same conduct and the proceedings instituted by the ACCC in September 1999.
Following admissions by the parties, Justice Drummond today imposed the following pecuniary penalties and awarded payments towards the ACCC's costs:
| Party | Penalty | Costs |
|---|---|---|
| Asset Group (Brisbane) Pty Ltd | $245,000 | $20,000 |
| John Barney | $50,000 | |
| Brian Davies | $50,000 | |
| David Douyere | $30,000 | |
| David Kemp | $25,000 | |
| Firevac Pty Ltd | $235,000 | |
| William Lynch | $50,000 | $14,000 |
The level of the penalty reflects a number of factors, including size of the company, the seriousness of the unlawful conduct and the level of management involved.
The Federal Court also ordered injunctions against the respondents, prohibiting them from engaging in similar conduct for a period of three years. The individuals associated with The Asset Group (Brisbane) Pty Ltd and Firevac Pty Ltd have undertaken to take part in trade practices compliance training to ensure that they are aware of their obligations under the Act.
"The ACCC's investigation has been long-running and extensive due to the large number of companies and related individuals", ACCC Chairman, Professor Allan Fels, said today. "The ACCC has finalised its proceedings against a large number of companies and related individuals who have cooperated in the ACCC’s investigation. These proceedings should send a warning that the ACCC is serious and persistent in its pursuit of corporations that engage in collusive conduct".
The case before the Federal Court today involved a number of building projects, including the following:
Coronation Office Park Stage 4
Aspley Hypermarket extension
Indooroopilly Offices (Station Road and Myers Street)
Koala House, Daisy Hill Forrest
Watermark Residences
Teneriffe Hill Apartments
Janoah Gardens, Brisbane
Salvin Park Complex, Creek Road
One Stop Shop Enoggera
Berkley Precinct Apartments
Guide Dogs Bald Hills
Enoggera Army Base Kitchen
Coration Drive Office Park Building 6
Enoggera Barracks Bushranger
Sunshine Coast University
Franklins Big Fresh Noosaville
St Paul’s Lutheran Church Caboolture
Iona Retirement Village
Blue Nurses Hostel Carbrook
The proceedings continue against the remaining respondents.