Cape Town 071108-.Andrew Marshall the CEO of Oceana with Luky star tins which is one of their Top brands. Picture Mxolisi Madela. Cape Town 071108-.Andrew Marshall the CEO of Oceana with Luky star tins which is one of their Top brands. Picture Mxolisi Madela.
Major fishing companies will appear before the Competition Tribunal after Oceana fishing admitted to price collusion in the industry and was fined nearly R35 million.
Yesterday the Competition Commission announced that it had settled with Oceana Group Limited and Oceana Brands Limited – which produces Lucky Star canned fish – with the company agreeing to pay a penalty of R34 750 050 – 5% of its 2010 turnover for pelagic fish (anchovy, pilchards and red-eye herring).
Brimstone Investments Corporation Limited and Tiger Brands Limited are both substantial shareholders in the Oceana Group.
Oceana Group chief executive officer Francois Kuttel said: “Oceana has co-operated fully with the commission during its investigation and, while we deeply regret the commission’s findings, we acknowledge that this occurred, with the exception of the Sea Harvest matter.
“The bulk of the penalty relates to open negotiations which were in place for the purposes of compensating skippers, crew, and some private boat owners in the small pelagic fishery for over four decades.
“While it was technically a contravention of the Competition Act, we believed this activity was covered by the exemption relating to collective bargaining.
“The remaining infringements were technical and in certain cases never implemented. Most importantly, no harm was done to consumers through any of these infringements.”
The fishing industry is one of the most important in the Western Cape, specifically on the West Coast, where it is a major employer.
Canned pilchards are also seen as a cheap protein for, most notably, the poor.
But economist Dawie Roodt has warned that the move does not mean the price of canned fish will be lowered. It could in fact increase, he says.
Commission spokeswoman Molebogeng Taunyane said that following Oceana’s admission, these companies would now appear before the Competition Tribunal: Oceana Brands; Foodcorp, which produces Glenryck pilchards; Premier Fishing SA, which produces the SSF brand of pilchards and Pecks Anchovette spread; Gansbaai Marine; Terressan Pelagic Fishing; Paternoster Visserye; Pioneer Fishing ;and Saldanha Foods – all members of the SA Pelagic Fish Processors Association (Safppa). - The Cape Argus