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Tesco is preparing a legal battle to clear its name of involvement in the
dairy price-fixing scandal that has cost consumers ￡270 million. Failure to
prove that it had no part in collusion with other supermarkets and dairy
processors may land it with a fine of at least ￡80 million. The Office of Fair
Trading (OFT) said yesterday that Asda, Sainsbury’s and the former Safeway, plus
the dairy companies Wiseman, Dairy Crest and Cheese Company, had admitted being
in a cartel to fix prices for milk, butter and cheese. They were fined a total
of just over ￡116 million as part of a leniency deal offered by the watchdog to
companies that owned up quickly to anti-competitive behaviour.
Officials at the OFT admitted privately that they did not think they would
ever discover which company or individual had initiated the pricing formula. But
the watchdog recognises that at the time supermarkets were under pressure from
politicians and farmers to raise the cost of milk to save dairy farming, though
it is not certain that money found its way to farmers. The OFT claimed in
September that it had found evidence that the retail chains had passed future
milk prices to dairy companies, which then reached a fixed price among
themselves.
The average cost to each household is thought to be ￡11.25 over 2002 and
2003. Prices went up an extra 3p on a pint of milk, 15p on a quarter of a pound
of butter and 15p on a half pound of cheese. There is no direct recompense for
consumers, however, and the money will go to the Treasury. The National Consumer
Council gave warning that the admissions would dent consumer confidence in
leading high street names and that people would become sceptical of their
claims. Farmers For Action, the group of farmers that has led protests over low
milk prices since 2000, is seeking legal advice on whether it can now bring a
claim for compensation.
The OFT investigation is continuing, however, in relation to Tesco,
Morrisons and the dairy group Lactalis McLelland, and any legal action is
expected to be delayed until that is completed.
Tesco was defiant and said that it was preparing a robust defence of its
actions. Lucy Neville-Rolfe, its executive director, said: "As we have always
said, we acted independently and we did not collude with anyone. Our position is
different from our competitors and we are defending our own case vigorously. Our
philosophy is to give a good deal to customers."
Morrisons has supported the OFT in inquiries into the former Safeway
business that it took over, but in a statement said that it was still making
"strong representations" in its defence. A spokeswoman for Lactalis McLelland
said that the company was "co-operating" with the OFT. Industry insiders
suggested that the three companies were deliberately stalling the OFT
investigation.
Sainsbury’s admitted yesterday that it had agreed to pay ￡26 million in
fines, but denied that it had sought to profiteer. Justin King, the chief
executive, said he was disappointed that the company had been penalised for
actions meant to help farmers but recognised the benefit of a speedy settlement.
Asda declined to say how much it would pay in fines and also said that its
intention had been to help farmers under severe financial pressure.
1. From the first paragraph, we may infer that _____
[A] Tesco has cost consumers ￡270 million.
[B] Tesco has colluded with Asda, Wiseman, Dairy Crest and Cheese Company
in fixing the dairy price.
[C] Tesco will be offered a leniency deal of ￡80 million.
[D] Tesco is trying its best to prove its innocence of the scandal.
2. Who is most probably the initiator of the pricing formula?
[A] retail chains.
[B] farmers.
[C] dairy companies.
[D] politicians
3. The word "defiant" (Line 3, Paragraph 4)most probably means _____.
[A] resisiting
[B] angry
[C] deficient
[D] confident
4. We may infer from Morrisons’ statement that _____.
[A] Morrisons was uncooperative with OFT.
[B] Morrisons was reluctant to support the inquiries into the former
Safeway business.
[C] Morrisons was trying to delay the OFT investigation.
[D] Morrisons was working hard to defend its interests.
5. The writer’s attitude to Tesco can be said to be _____.
[A] biased.
[B] objective.
[C] sympathetic.
[D] optimistic. |
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发表于 2017-8-6 14:10:52