Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

False Timber Grading – Carter Holt Harvey

False Timber Grading – Carter Holt Harvey

1. Carter Holt Harvey is not a member of the New Zealand Timber Industry Federation (NZTIF) and wasn’t at the time when the false grading occurred. In 2002 we became aware of wrongly graded timber in the market and of rumours that Carter Holt Harvey was deliberately misrepresenting the grade of its MGP10 Laserframe timber.

We commissioned independent tests of CHH Laserframe MGP10. These tests confirmed that the grade was in fact being substantially misrepresented.

After taking legal advice we felt it necessary to inform the Commerce Commission and also the Minister of Forests. We were also concerned for any damage to the reputation of timber generally and to our own Member sawmills, wood processors and customers.

We wish to assure the public that we believe that these practices have ceased. The public can have every confidence in our grading standards.

Carter Holt Harvey has new owners and managers who we are sure are committed to maintaining correct grading standards.

We also wish to reassure the public that we believe there are no safety issues. The wrongly graded MGP10 Laserframe supplied however will not meet the expected performance of the grade represented. A typical issue might be the sagging of lintels or floor joists (e.g. squeaky floors). The customer will have paid too much for that timber. A good analogy would be the supply of 91 octane petrol represented as 96 octane.

NZTIF will continue to be vigilant on grading standards to uphold the excellent reputation of timber. NZTIF supports an independent grading verification scheme, Verified Timber Ltd, which will give even greater assurance to customers.

With the guilty plea the way is now open for compensation claims by competitors and customers.

With Laserframe MGP10 sales of close to $200 million over the three years in question the claims can be expected to be very substantial.

Our Members will have suffered from unfair competition because we supplied the correct grade of timber our costs would have been higher. this would result in reduced sales, lower prices and lower margins.

At that time CHH also initiated an attack on visually graded timber – the traditional and proven method of grading used by almost all of our Members at that time.

CHH proposed changes to the grading standards to favour machine stress grading.

It had moved a large volume of its grading to machine stress grading and believed this would give them an advantage (as they had about 80% of the machine stress grading capacity).

Their deliberate decision to derive an even greater advantage by misrepresenting their machine stress grades clearly put anybody who was visually grading at an even bigger disadvantage.

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>


Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>

ALSO:

Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>

ALSO:

CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>

ALSO:

Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>

ALSO:

Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>

ALSO: