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

 

Auckland Port To Recapture Gas: Union Calls On Ports To Stop Spewing Methyl Bromide

The Maritime Union of New Zealand welcomes the decision by Ports of Auckland to stop releasing methyl bromide emissions into the air. The move to fully recapture the toxic gas after fumigation sets a new benchmark for industry best practice. More>>

ALSO:

Retail: Banks Shoes Calls In Receiver

Banks Group, which runs 14 stores across the country under the brands including Banks Shoes and Shoe Connection, has been tipped into receivership at the request of director John Bank. More>>

ALSO:

NZ's Space Programme: Rocket Lab Makes It To Space (But Not Orbit)

Electron lifted-off at 16:20 NZST from Rocket Lab Launch Complex 1 on the Mahia Peninsula in New Zealand. It was the first orbital-class rocket launched from from a private launch site in the world. More>>

ALSO:

Earlier:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO: