Construction company faces $3m fine for misleading customers

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

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 standards so deserved a fine of about $3 million, he said.

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.

During initial inquiries, Mr Taylor told RNZ it was an inadvertent mistake and the mesh had been certified by an accredited laboratory. This was not actually the case. Steel and Tube‘s seismic mesh then failed tests ordered by the commission.

The judge has reserved their decision until next week.

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