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