Carter Holt fined for price fixing

MATT NIPPERT
Last updated 13:58 26/03/2014

Relevant offers

Industries

Council consultant to scope science research Ask the Expert: Getting past the steeper stairs of growth KiwiRail posts another loss and remains reliant on Government support NZI offers insurance excess waiver to top quarter of trucking firms Booksellers NZ wary as Australia explains limit to 'Amazon tax' NZ's richest businessmen lose millions in sharemarket turmoil Mighty River Power to pay special dividend, operating profit slips to $482m Falling petrol prices mask rising margins After Kirkcaldie & Stains move, Brierley moves on Smiths City NZ Post boosted by Kiwibank

Carter Holt Harvey, owned by rich-lister Graeme Hart, has been formally fined $1.85 million for what a High Court judge describes as a ''classic case of price fixing''.

At the High Court at Auckland today Justice Geoffrey Venning confirmed the fine following action brought by the Commerce Commission tackling arrangements made in late 2012 between Carter Holt and rival Fletcher Distribution.

Both parties agreed to charge only costs plus an 8 per cent margin for the supply of structural timber to commercial customers in Auckland.

Fletcher Distribution, operating Placemakers, reported the scheme to the Commerce Commission in January 2013 under a cartel leniency program.

Former Carter Holt manager Dean Dodds, was also fined $5,000.

Both Dodds and Carter Holt, who participated in the cartel through Carters, had co-operated with the investigation and admitted breaching the Commerce Act.

Kate Morrison, the Commerce Commission's general manager for competition, said the penalty was a necessary deterrent.

''Cartels have the potential to cause real harm to consumers by increasing prices and creating fewer choices. We are pleased that Carter Holt and Dodds accepted their role in the conduct early,'' she said. 

Ad Feedback

- Fairfax Media

Special offers

Featured Promotions

Sponsored Content