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

 


Carter Holt fined $1.85M for timber price fixing

Carter Holt fined $1.85M for timber price fixing agreement with Fletcher in Auckland

March 26 (BusinessDesk) – Carter Holt Harvey, the wood company owned by Graeme Hart’s Rank Group, was fined $1.85 million by the High Court for price fixing in the Auckland commercial timber market.

Carter Holt was ordered to pay the penalty, and its former manager Dean Dodds fined $5,000, after it entered into an understanding with Fletcher Building’s distribution arm in late 2012 to fix prices for the supply of structural timber to commercial customers in Auckland, the Commerce Commission said in a statement.

The parties agreed to price MSG8 timber at cost plus an 8 percent margin, in breach of the Commerce Act, the Commission said. The cartel ran for six months before breaking down and during that time it was applied in about 10 percent of the jobs priced by Carter Holt through its building supply merchant Carters, the Commission said.

Justice Geoffrey Venning described the agreement as a “classic case of price fixing” but recognised it was not the most serious price fixing conduct.

Commerce Commission general manager competition Kate Morrison said price fixing harms competition and penalties were a necessary deterrent.

“This case reinforces that price fixing can attract high penalties even where the commercial gains are relatively modest and the conduct continues for a relatively short period,” Morrison said. “Cartels have the potential to cause real harm to consumers by increasing prices and creating fewer choices.”

Fletcher’s distribution arm Placemakers was granted immunity after it discovered its involvement in the price fixing last year, told the Commission and cooperated with the investigation.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news