Horse transport price-fixing claim

The Commerce Commission has filed proceedings against horse transporter operator the International Racecourse Transport New Zealand Partnership, claiming price-fixing.

The commission alleges that an agreement between IRT NZ and a competitor to set retail prices amounted to cartel conduct in breach of the Commerce Act.

In 1989, IRT Partnership formed a joint venture with a competitor to provide equine airfreight, which included a pricing structure for the services.

The commission alleges the agreement provided for the fixing, controlling and maintaining of the retail prices to be quoted and charged, and the size of discounts that could be given, for equine airfreight services.

The partnership offers logistical arrangements for the movement of horses by air and includes booking chartered flights, safeguarding the welfare of the animals while in transit, arranging vet checks and tax and customs payments for destination countries.

In October 2018, the partnership was renegotiated. But the commission alleges the historic agreement to set retail prices amounted to cartel conduct.

The allegations made by the commission are against the IRT Partnership, which includes Auckland-based International Racehorse Transport (NZ) Ltd and Cole IRT Ltd. The collaboration is one of the largest equine freight providers in the country, the commission said.

A statement provided by IRT said there were no allegations against New Zealand Bloodstock, a counter party in the transport arrangement with IRT NZ.

The allegations only related to the transportation of horses by airfreight on domestic and transTasman routes, the statement said. IRT said it never intended to breach the law.

It would continue to fully cooperate with the commission, it said.

The venture was intended to provide a regular, reliable transTasman service, which it did not believe could have otherwise been provided by a single party given the cost and demand for shipments.

‘‘IRT NZ believes that the joint venture was the best way to achieve that purpose for customers at the time, particularly given the level of commitment required by an airline to allocate a suitable aircraft for the service,’’ it said.

The venture was intended to provide a regular, reliable transTasman service.

IRT NZ