26 May 2018

Construction company faces $3m fine for misleading customers

12:04 pm on 26 May 2018

A construction company could face a $3 million fine for misrepresenting seismic standards on materials it used.

Steel and Tube

Photo: Supplied

Commerce Commission lawyer John Dixon QC told the Auckland District Court in a hearing that Steel & Tube misrepresented the seismic standards of steel mesh it used.

The company failed to test the mesh according to four tests so deserved a fine of about $3 million, he said.

Steel & Tube's share price dropped from $2.63 in July 2017 to $1.62 today.

Mr Dixon said even taking into account the company's cooperation and early guilty plea, the fine should be between $2.7m and $3.3m.

Steel & Tube lawyer Mike Heron QC said such a fine was without precedent as it was triple what any other court had imposed for similar offences.

Steel & Tube chief executive Dave Taylor left the company in September.

The judge has reserved their decision until next week.