Oil distributor convicted of price-fixing

A former Loughrea-based home heating oil distributor was convicted by a jury yesterday of entering into an agreement with others to fix prices in the home heating oil distribution business in Co Galway between 2001 and 2002.

In the first ever case of its type in Europe to be tried on indictment in front of a jury, former oil distributor Michael Flanagan (50), of Rathfarn, Loughrea, Co Galway, trading as Flanagan Oil, denied two charges of entering into an agreement with others to fix the price of gas oil and kerosene home heating oil between January 1st, 2001 and February 11th, 2002, contrary to Section 3 of the Competition (Amendment)Act, 1996.

Imposing fines of €1,750 on each charge yesterday at Galway Circuit Criminal Court, Judge Raymond Groarke said he accepted Mr Flanagan was a very decent man but he had been "very foolish" to have got involved at all and to have given way to pressure brought to bear on him by others to join the Connacht Oil Promotion Federation (COPF) in 2001.

The judge said he accepted the accused was a "small operator" and was not involved in setting prices or enforcing prices but he had been found guilty by the jury of entering into an agreement with others to fix prices.

During the three-day trial, Judge Groarke referred to Mr Flanagan as a "minnow" who had been surrounded by "sharks" in the home heating oil distribution business in Co Galway during the late 1990s and up until 2002.

Yesterday, the judge said Mr Flanagan's degree of criminal conduct in the matter was at the lowest end of the scale and did not warrant a term or imprisonment.

Referring to others whose names were mentioned in evidence during the three-day trial and who are alleged to have been involved in the operation of a cartel, Judge Groarke said: "Those engaged in cartels and involved in the fixing of prices are doing so only with the motivation of greed, and with nothing to be gained but financial profit. That is why the legislature takes such a serious view of it." The judge remarked that the 1996 Competition (Amendment) Act provides for terms of imprisonment of up to two years for offences of this type.