Image for Asia Pulp and Paper Part II

I believe the PR company representing APP rang Mr Tuffin to state that they wished to correct my previous post on Tas Times (HERE).

I await these corrections with interest.

In the interim perhaps they would like to comment on the $3.4 million fine, ordered yesterday to be paid by APP for collusive overcharging on paper products in Australia.

It would appear that the ACCC, in one of its rare legal wins, has managed to pin down this multi national pariah in the Australian Federal Court: ACCC Website HERE

Federal Court judge Justice Annabelle Bennett found that Asia Pulp & Paper Co Ltd and Indonesia’s PT Indah Kiat Pulp and Paper were part of a group of competitors called the Triple A Club which had meetings to fix the prices of paper across the region including Australia.

Bennett found the “AAA Club meetings involved systematic sophisticated and long running cartel arrangements between the participants” and said “the cartel participants were seeking to achieve stability in pricing by avoiding competition among themselves.”

The Guardian Newspaper on 8th July 2010 carried an article (HERE) noting that HSBC had sold its shares in Sinar Mas (All about Sinar Mas, Wikipedia, HERE)as a result of its forest policy in Indonesia, thereby joining Unilever, Nestle and Kraft who have suspended their dealings with the palm oil side of the Company.

Further, Kimberley Clark, Kraft, Nestle and Unilever are in the process of implementing global paper policies that will rule out supplies from APP, unless substantial changes are made by that company and its suppliers over the logging of Indonesian forests.

Tesco and French supermarket giant Carrefour announced they too would be ridding their shelves of APP products by the end of 2010, following similar decisions by Sainsbury’s and Marks and Spencer in the UK.

If Gunns and APP become joint venturers, in a pulp mill underwritten by the taxpayer, via the Gillard/Giddings Labor Governments, there will be an uprising of good honest people in Tasmania. 

Highly questionable activity is not, as yet, the order of the day in Australia however rampant it may be in the worldwide pulp, paper and logging industry.

John Hawkins

2 March 2011

Image, from HERE