Scoop has an Ethical Paywall
License needed for work use Register

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


Steel & Tube, ComCom appeal record mesh fine

Steel & Tube Holdings and the Commerce Commission have each appealed the record $1.89 million fine imposed against the company for misrepresenting steel mesh products it sold. The regulator said Auckland District Court Judge Warren Cathcart erred last month by not adequately taking into account the size of Steel & Tube and the potential it had to gain from the misconduct. Nor had the judge properly attributed the knowledge of a Steel & Tube manager to the company. Steel & Tube believes the fine is excessive, given the breaches were unintentional and that both the Ministry of Business, Innovation and Employment and the Structural Engineering Society of New Zealand have indicated that homeowners should not be concerned about the safety or ductility of steel mesh in their homes. Steel & Tube shares fell a cent to $1.27, taking their loss so far this year to 37 percent. Steel & Tube was sentenced last month on 24 charges under the Fair Trading Act after an earlier guilty plea. The charges, brought by the commission, related to conduct spanning four years, where Steel & Tube sold about 480,000 sheets of steel mesh for $24 million from 482 batches. The regulator argued Steel & Tube misled the public with representations that the mesh met an Australia/New Zealand standard for reinforcing steel when it didn't, and that the batches had been independently tested when they hadn't. Lawyers for the commission had initially called for a fine of between $3.8 million and $4.6 million as a starting point. The judge had started at a $2.9 million fine for the company, discounted to reflect Steel & Tube's cooperation and early guilty plea.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

© Scoop Media

Advertisement - scroll to continue reading
Business Headlines | Sci-Tech Headlines

FMA: MAS To Pay $2.1M Penalty For Making False Representations

Following proceedings brought by the FMA, MAS has been ordered to pay a $2.1M penalty for making false and/or misleading representations to some customers. MAS admitted failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments.More

IAG: Call On New Government To Prioritise Flood Resilience

The economic toll of our summer of storms continues to mount, with insurance payouts now topping $1B, second only to the Christchurch earthquakes. AMI, State, & NZI have released the latest Wild Weather Tracker, which reveals 51,000 claims for the North Island floods & Cyclone Gabrielle, of which 99% (motor), 97% (contents), and 93% (home) of claims have now been settled. More


Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.