Steel & Tube Holdings Ltd followed the Commerce Commission back into court yesterday as both filed appeals against a fine imposed last month relating to the company’s steel mesh.
Judge Warren Cathcart fined Steel & Tube $1.885 million in the Auckland District Court on 24 October for breaching the Fair Trading Act by making false & misleading representations about its steel mesh products which are used in construction to provide strength & stability in the event of an earthquake.
Steel & Tube pleaded guilty to 24 charges relating to conduct between 1 March 2012 & 5 April 2016, covering 482 batches & about 480,000 sheets of steel mesh, which Steel & Tube sold for about $24 million.
Judge Cathcart adopted a starting penalty of $2.9 million for the misrepresentations and discounted this to a $1.885 million penalty to reflect Steel & Tube’s guilty pleas, co-operation with the commission & remedial measures.
The commission said it had appealed on the bases that the judge erred by:
- failing to properly attribute the knowledge of a Steel & Tube manager to the company, and
- not adequately taking into account the size of Steel & Tube and the potential for it to gain from the conduct.
Steel & Tube said yesterday it had carefully reviewed the decision and believed the fine was excessive. In its statement yesterday, Steel & Tube said that when the judge released his decision it had apologised to its customers, shareholders & staff for the historic breaches of the Fair Trading Act and stressed that the breaches were unintentional.
The company added: “Both the Ministry of Business, Innovation & Employment and the Structural Engineering Society have indicated that homeowners should not be concerned about the safety or ductility of steel mesh in their homes. The Insurance Council also recently reassured homeowners they should not be unduly concerned about insurance claims in respect of homes containing steel mesh from Steel & Tube.”
24 October 2018: Steel & Tube fined $1.885 million for misleading steel mesh representations
Attribution: Commission & company releases.