Tennant Wire Limited Fined $100,000 for Conspiracy Offence Under the Competition Act

OTTAWA, February 20, 1995 — George N. Addy, Director of Investigation and Research for the Bureau of Competition Policy, announced today that Vancouver-based Tennant Wire Limited pleaded guilty to one charge of conspiracy under s. 45 (1)(c) of the Competition Act related to the sale and distribution of pulp baling wire and was fined $100,000 in the Supreme Court of British Columbia in Vancouver, B.C..

The Court also issued a Prohibition Order against Tennant under section 34(1) of the Act that forbids the company from engaging in criminal activities of this nature in the future. James Walker, a U.S. resident who was in a position to influence the conduct of Tennant in the market, was also made subject to a Prohibition Order under section 34(2) of the Act.

"This decision concludes a long standing case in a key sector of the B.C. economy," Addy stated. "Anti-competitive agreement of this type will be pursued by the Bureau against all participants regardless of size."

This prosecution concludes the Bureau's inquiry into anti-competitive agreements during the 1980s among suppliers and manufacturers of pulp baling wire to the British Columbia and Alberta pulp mills. On November 5, 1992, Tree Island Industries Ltd., Titan Steel & Wire Co. Ltd., Davis Wire Industries Ltd. and Gerrard Oval Strapping (EII Limited) pleaded guilty to one charge each of conspiracy under section 45(1) (c) of the Act, and were fined a total of $1.6 million. These companies were ordered subject to Prohibition Orders under section 34(1) of the Act . In addition, a number of corporate officials undertook to the court to be bound by the prohibition order entered into by the corporate accused.

Pulp baling wire is used by the pulp and paper industry to bale bundles of wood pulp as it is produced and to group the bales into larger bundles suitable for transportation.