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- Release Date: 20/12/13 18:09
- Summary: GENERAL: FBU: Outcome of Regulatory Inquiry into Auckland timber market
- Price Sensitive: No
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FBU
20/12/2013 16:09
GENERAL
REL: 1609 HRS Fletcher Building Limited
GENERAL: FBU: Outcome of Regulatory Inquiry into Auckland timber market
Auckland, 20 December 2013 - Fletcher Building Limited is aware that the
Commerce Commission has recently filed proceedings against Carter Holt Harvey
Limited following its inquiry into the Auckland timber market.
Fletcher Building confirms that during a regular internal audit and review
process in early 2013 it was identified that price-fixing activity had taken
place involving certain people in two of its central Auckland stores -
PlaceMakers Cook Street and Mount Wellington. Pricing understandings for
timber quotes in the Auckland commercial construction market were in place
with Carter Holt Harvey.
The company immediately instituted an independent investigation of the matter
and, given what was revealed, felt compelled to advise the Commerce
Commission. Fletcher Building then notified the Commerce Commission and was
granted immunity from prosecution. As a result, the Commission will not be
taking any enforcement action against the company or any of its subsidiaries.
The company also extended its review to pricing conduct in other regions and
as a result is confident that the issues arose only in the Auckland market.
The activity occurred from late 2012 to early 2013. A comprehensive third
party review and analysis of pricing during that period has revealed that the
price arrangements benefited PlaceMakers' pre-tax earnings by just under
$100,000. PlaceMakers is compensating affected customers supplied with
timber against these irregular quotes.
Fletcher Building maintains high expectations of ethical conduct in all of
its activities, including strict compliance with its trade practices policy.
To the extent that its representatives, joint venture partners and employees
have not met the expected standards of behaviour they have been, or will be,
held to account for such short-comings.
For further information contact:
Rick Osborne
General Manager Corporate Affairs
Phone: + 64 9 525 9115
Mobile: + 64 21 889 054
end
End CA:00245554 For:FBU Type:GENERAL Time:2013-12-20 16:09:43
