Fed: Woolworths rejects ACCC's 'secret agreement' claims

AAP General News (Australia)
12-11-2001
Fed: Woolworths rejects ACCC's 'secret agreement' claims

By Jim Hanna

CANBERRA, Dec 11 AAP - Retail giant Woolworths today rejected claims by the competition
watchdog that it withheld secret agreements about the granting of liquor licences.

However, it remains adamant that the Australian Competition and Consumer Commission
(ACCC) will not see legally privileged documents regarding liquor licensing proceedings.

The ACCC wants all liquor licensing documents from Woolworths and its chief rival Coles
Myer to decide whether new liquor retailers were forced into agreements to limit competition
with existing liquor outlets.

ACCC chairman Allan Fels said the Commission had received complaints alleging that
some outlets were delaying efforts by prospective retailers to get liquor licences by
lodging objections against them in the Liquor Court of New South Wales.

The objections would be withdrawn if the prospective licensees secretly agreed to limits
such as not selling take-away liquor or restricting customer service levels, Professor
Fels said.

While the ACCC made no allegations against any retailer, it has sought documents from
Coles and Woolworths - which respectively own and operate the outlets Liquorland and Mac's
Liquor - believing they could shed light on the claims by the prospective licensees.

Woolworths said it already had handed over agreements in response to ACCC demands,
but did not believe the Commission should see certain privileged documents.

"(These include) the legal advice and legal assistance given to Woolworths by its lawyers
in relation to proceedings in the Liquor Court of New South Wales," Woolworths general
manager, corporate services, Rohan Jeffs said.

Woolworths was granted a High Court injunction restraining the ACCC from access to
the documents until February.

But the ACCC could win access to the documents on Friday when the High Court decides
whether to hear an appeal in what will effectively be a test case on the Commission's
powers to gain access to privileged legal advice.

AAP jph/daw/hu/sb

KEYWORD: LIQUOR

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