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Commerce Commission Conclusion Disappoints

News Release October 27, 2006

Tasman Insulation Disappointed By Commerce Commission Conclusion

In response to a finding by the Commerce Commission that two of its products may not have met the stated thermal resistance standard, Tasman Insulation New Zealand Limited (Tasman) advises that it is very confident in the quality and integrity of its insulation range.

General Manager Bill Smith said that, despite extensive effort, Tasman Insulation could not reconcile the conclusions of the Commerce Commission investigation into two products, although it had resolved the matter in question three months before becoming aware of the Commission’s investigation by increasing product densities.

“Tasman Insulation has for 45 years placed great value on providing certainty to consumers and delivering products to the appropriate industry standards. We are, therefore, naturally disappointed in the Commission’s conclusions on these two products. They are made using an established industrial recipe and over the years have been regularly tested by external agencies. In addition, our manufacturing processes are AS/NZS ISO 9001:2000 accredited.”

Mr Smith advised that in the middle of last year the company was having difficulty understanding some test results that were inconsistent with the previous pattern, particularly as there was nothing in the manufacturing process that explained such changes. As a consequence it was decided in October 2005 to increase product densities. As the Commerce Commission has acknowledged, this decision to increase product densities was implemented three months before the company learnt of its enquiries.

The one thing that this matter has brought to light is that testing of the performance of thermal insulation gives rise to differing interpretations of testing standards. Tasman will continue to work with external agencies on these matters, and is very appreciative of their assistance in this complex and challenging area.

Tasman Insulation retains its AS/NZS ISO 9001:2000 registration and the products that are covered continue to have BRANZ Appraisals and Environmental Choice New Zealand Accreditation.

Ends

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