The Irish Road Hauliers Association (IRHA) was behind "an illegal cartel" aimed at securing increases in prices for haulage services at Dublin Port, it was claimed in the High Court yesterday.
Mr Paul Gallagher SC, for the Competition Authority, said the IRHA and other hauliers had agreed to enforce acceptance of new uniform and increased charges set out in a letter of May 15th, 1997, by blockading various shippers and distributors at ports throughout Ireland.
He made the claims while opening an action by the Authority against the IRHA, of Lower Leeson Street, Dublin, and four hauliers, who were described as sample defendants.
The four are: Dowling Freight Services Limited, Shaw's Lane, Bath Avenue, Dublin; Mr Liam Flanagan, Cabra Road, Dublin; Mr Joseph Barrett, Mount Anner, Ballydowd, Lucan, Co Dublin and Mr John Nestor, Bennetstown, Dunboyne, Co Meath.
The Authority claims there was an agreement and/or a decision and/or a concerted practice between the IRHA and its members, or some of them and/or other hauliers, that the differing rates of remuneration paid by shippers and distributors were not acceptable and that it was agreed to impose new and increased charges.
It also claims the defendants and other road hauliers, following several meetings, decided to blockade various shippers and distributors at various ports and locations around the country in an attempt to address grievances, mainly regarding the level of charges.
Mr Gallagher is seeking a declaration that the alleged concerted practice, agreement or decision described is illegal and void under the terms of the Competition Act 1991 and an order restraining the defendants and others from implementing it.
He is also seeking an order restraining the defendants and others from seeking to secure the compliance of others, by means of a blockade or otherwise, with the terms of the alleged concerted practice, agreement or decision.
The IRHA and other defendants deny all the claims. They say if there was a blockade as alleged, which they deny, then it was not unlawful.
Without prejudice to their defence, the defendants concede that arrangements entered into by the IRHA by or on behalf of certain of the other defendants - whereby the Association communicated to certain parties that a uniform rate of charge to road hauliers would apply - amounted to a breach of Section 4 of the Competition Act and they undertake not to engage in such practice again.
In explanation but not in defence of that, the defendants said this action was taken "by virtue of the abuse by certain shipping companies of their dominant position within the market whereby rates paid to road hauliers have been reduced to uneconomic levels".
Opening the action yesterday, Mr Gallagher said Dublin Port was, in the 1970s and 1980s, almost brought to its knees by various practices and had lost out to other ports like Larne. But there had been substantial improvements since the 1990s.
It was the Authority's case that a price-fixing cartel operated by the IRHA had jeopardised the achievement at Dublin Port and was an illegal cartel under the terms of the 1991 Competition Act.
The case had its genesis in actions taken by the defendants from early 1997 through to July 1997 and thereafter "and continuing to some extent today".
A hauliers' blockade of Dublin Port began on June 3rd, 1997 and escalated the following day, he said. The main purpose of the blockade was to achieve a negotiating position for the IRHA on behalf of hauliers by which it would lay down the minimum prices to be paid for their services.
The hearing before Mr Justice McCracken is expected to last several days.
