PRESS RELEASE

    News Release

    14th June 2007

     

    GOVERNMENT ACCUSED OF OPERATING PRICE-FIXING CARTEL WITH CHEMICAL COMPANIES

     

    SENIOR JUDGE DEMANDS INQUIRY AND SAID DEFRA HAD "TAKEN A SLEDHEHAMMER TO CRACK THE WRONG NUT"

     

    Following the dramatic end of a prosecution today relating to pesticide imports, a Senior Crown Court Judge has called for an inquiry against the Department for Environmental, Food and Rural Affairs (Defra) and a report to the Competition Commission.

     

    At the hearing at Shrewsbury Crown Court, His Honour Judge Onions said that Defra, through its agent the Pesticides Safety Directorate (PSD) had "unwittingly or wittingly collaborated with chemical companies to maintain a cartel".

     

    The prosecution was brought against John Rawlings, an independent importer of pesticides, who was accused of bringing pesticides into the UK from Italy and the Netherlands in breach of Defra controls. However, the Court accepted Mr Rawling's argument that the controls on imports were standing in the way of free trade. He successfully demonstrated to the Court that his farmer customers had to pay up to 45% more for the same pesticides used by farmers on the continent.

     

    The Court heard evidence from witnesses from the pesticide companies including Syngenta and BASF who admitted under cross examination that the major companies deliberately manipulate the market to force the price of pesticides up in the UK.

     

    In closing the case His Honour Judge Onions said that the case was of great public interest and it should be the pesticide companies being investigated. He added that in pursuing Mr Rawlings Defra had "taken a sledgehammer to crack the wrong nut". He concluded by saying that he would be writing to Kerr Wilson, the Chief Executive of PSD, asking for an inquiry into why the prosecution had been brought and what lessons PSD and Defra had learned from the case.

    Defra decided not to proceed with eleven of the charges against Mr Rawlings after the Judge threatened to witness summons a Senior Defra Minster. Mr Rawings was given a conditional discharge on three offences.

     

    After the trial Mr Rawlings said: "This case should never have come to court. It has put enormous pressure on me but I hope that I have made a stand for free trade and a fair deal for farmers".

     

    Denise Dowen, a Regulatory Partner at the Manchester office of National law firm Hill Dickinson, represented Mr Rawlings and said:  'Many of my clients are being persecuted by Defra over pesticide imports. Their goods have been unlawfully seized and their businesses have been destroyed. Last year the UK government was given a warning by the EU for restricting free trade in these goods. I welcome the decision handed down by His Honour Judge Onions and I hope that it results in Defra being called to account".

     

     

    For further information, please contact:

    Denise Dowen

    Hill Dickinson LLP

    07802 462 435

     

    Heather Price or Justin Strong

    SKV PR

    0161 838 7770

     

    About Hill Dickinson

     

    Hill Dickinson LLP offers a comprehensive range of legal services from offices in Liverpool, Manchester, London and Chester and its associated firm Hill Dickinson International has offices in London and Greece. Collectively, the firm has 152 partners and a complement of more than 1000 staff.

     

    Hill Dickinson is a major force in insurance and is well respected in the company and commercial arena. The firms marine expertise is internationally renowned and is one of the largest marine practices in the UK following a merger with Hill Taylor Dickinson on 1 November 2006. The firm has a highly reputable commercial litigation practice, an award winning property practice and is widely regarded as a leader in the fields of employment, intellectual property, NHS clinical/health related litigation and private client.

     

    The firm is advising Liverpool 2008: European Capital of Culture as exclusive Official Lawyers on all legal and contractual dealings with sponsors, partners, suppliers, event organisers and the myriad of other businesses involved in the multi-year programme building up to 2008 and in the legacy years following.

     

    Key lateral hires of 2006/07 include Denise Dowen (environmental partner), Jane OSullivan (corporate partner), Patrick Keown (head of banking), Alistair Johnson (commercial property partner), John Holmes (head of planning), Alaisdhair MacPhie (commercial property partner), James Southworth (commercial litigation partner), Matthew Forrest (property litigation associate) Aidan Loy (employment partner) and Andrew Ashley Taylor (head of pensions).

     

    The financial year was concluded with ten partner promotions, six of which were in the marine practice group, two in insurance, and one each respectively in construction and private client.