Dairy giant escapes break-up

Wiseman controls most of Scotland's market

A government body has ruled Scotland's biggest dairy company, Robert Wiseman, is operating a monopoly.

The Competition Commission said that the size of Wiseman dairies was "against the public interest".

But the company will not be broken up as a clear majority of the commission did not support the ruling.

Trade and Industry Minister Stephen Byers can only take action against any company if two-thirds of the commission support punitive action.

We are pleased that after an extensive nine month inquiry no action is to be taken in relation to the company's operations in Scotland

Chairman Alan Wiseman

However, the four-strong investigation panel were evenly divided on the case and only came up with the verdict on the chairman's casting vote.

The Competition Commission launched an investigation in February after allegations of "monopolistic practices" were made against the group in Scotland.

During the probe, the commission compiled a list of "remedies" that could be recommended if Wiseman was found to have been operating against the public interest.

These included forcing the firm to sell off its milk processing plants in Scotland and stopping it from raising milk prices for three years.

Close review

Another measure suggested by the commission was to stop the company from buying further milk processing facilities in Scotland.

But the split decision by the commission means that none of the above "remedies" will be applied to Robert Wiseman in Scotland.

However, the Competition Commission has asked the Director General of Fair Trading to keep the situation under close review.

Chairman Alan Wiseman welcomed the news that the company would not be forced to break up.

"We are pleased that after an extensive nine month inquiry no action is to be taken in relation to the company's operations in Scotland," he said.