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

 


CSR joins James Hardie in cutting deal over leaky NZ schools

CSR joins James Hardie in cutting deal over leaky NZ schools

By Paul McBeth

Jan 28 (BusinessDesk) - CSR, the ASX-listed building products maker, has reached a confidential settlement with New Zealand’s Ministry of Education over leaky schools, seeing off the need for legal action.

The ministry, which oversees education policy and spending, has discontinued its legal action against CSR Building Products, a local subsidiary of the Australian firm, after settling the claim, Associate Education Minister Nikki Kaye said in a statement. Details of the settlement will remain confidential.

The ministry filed the proceedings last year as it embarked on a remediation programme on 800 buildings across more than 300 schools, with an estimated cost of some $1.5 billion.

“While the CSR product is only on a small number of schools, I’m very pleased to see the industry responding sensibly and allowing settlement to be reached without the need for court action,” Kaye said. “Effective legal action will continue as needed to protect Crown assets, but it is only part of a much wider strategy to ensure delivery of the best possible learning environments for students and teachers.”

When CSR was named as a party in the suit, it talked down its role saying its low level of market share of the product meant “any potential financial impact related to this action would not be material to the financial results of the company.”

CSR’s shares were unchanged at A$2.90 on the ASX in early trading today.

The settlement is the second in as many months, after James Hardie cut a deal just before Christmas, having it faced potential costs of up to US$47.6 million related to a slew of leaky building claims, including provision of US$15.2 million for the ministry’s NZ$1.5 billion suit against cladding manufacturers.

At the time, James Hardie said its settlement won’t have a material adverse impact on its business result, which would see the company support the ministry’s remediation programme and support future property development around New Zealand.

The ministry is continuing its legal action against Carter Holt Harvey.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news