Skip to main content
A Clear Direction
rss feedour twitterour facebook page linkdin
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Thursday, November 01 2007

I have to point out some bias in this blog up front.  I hate 'white collar' crime.  I think that it is often understated - however whether you take money from people through straight theft, or through so called 'white collar crime', it has the same impact on the victims.

Consider the crooks selling fake investment schemes.  The impact that has on their victims is no different to theft - and the perpertrators of such theft should be dealt with harshley.

So to today's announcement that Richard Pratt has only been dealt a fine for price fixing in the cardboard market.

As consumers, we all use carboard.  From pizza's to new computers each of us was impacted by the price fixing between Visi and Amcor.  Let's try and put a figure on this.  The Australian cardboard market has two basic players, and is worth about $2 billion a year.  Let's assume that the price fixing ran for three years - although it almost certainly ran for longer.  If the price fixing allowed them to overcharge by 5%, that means that Visi and Amcor would be benefiting to the tune of $100 million a year in extra revenue - or $300 million over three years.  That is $15 for every man woman and child in Australia.  So what were the total fines for this price fixing? - $38 million. 

Amcor and Visi have fixed prices, stolen $300 million from Australian consumers and businesses and been fined less than $38 million.  Good work if you can get it.

(PS - there is a $700 million class action against Visi and Amcor for damages, so our $300 million estimate even looks a bit conservative).

Posted by: Scott Francis AT 07:49 pm   |  Permalink   |  Email
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy