VETS GIVE UNDERTAKINGS ON FEES

The Competition Authority today (Monday 19th October, 1998) announced that its court proceedings against the Irish Veterinary Union (IVU) had been settled after the IVU gave undertakings to the court that it would not recommend minimum fees to be charged by its members for carrying out annual testing for TB and Brucellosis and/or for providing clinical veterinary services. It further undertook to inform its members that :

• any agreement regarding the charging of such minimum fees;
• the operation of any recommended minimum fee system; and
• the refusal to provide clinical services to farmers who refuse to pay such recommended fees are contrary to Section 4 of the Competition Act, 1991. The IVU has also agreed to pay the Authority's legal costs. On that basis the proceedings were struck out.

The Authority had brought proceedings against the IVU earlier this year alleging that certain practices were in breach of Section 4(1) of the Competition Act, 1991. This followed a search by the Authority of the IVU's offices last February.

The Authority`s Statement of Claim (which sets out its allegations against the IVU) refers to a Newsletter issued to IVU members dated 29 March 1996 which includes a list of 'recommended minimum fees' and which states that it was 'vital that these minimum charges are strictly adhered to subject to your normal credit policies. There should be much greater contact with and co-operation between neighbouring practices in this regard. The IVU branch will facilitate this.'

The Statement of Claim also refers to a subsequent newsletter dated 24 March 1997 where reference was made to recommended minimum fees for other clinical services and where it was stated that: 'It is stressed that these recommended fee guidelines are minimum standards only. However, it is the Union's view that no practice should be charging below these levels.

Branches will be asked to do what they can to reproduce the co-operation seen in relation to TB fees in bringing fees up to these and improved levels. Obviously where your current fees are above this level you should continue charging as before.'