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: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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