Former timber boss admits Fair Trading breach

A former timber company boss been fined $15,000 after pleading guilty to 36 charges relating to misleading retailers and consumers about timber frames and roof trusses.

Larry Roger Binns, former managing director of Total Frame and Truss Ltd, was fined in Auckland District Court on Wednesday a total of $15,000 for breaching the Fair Trading Act.

He has also been ordered to pay costs of $130.

Total Frame and Truss, a west Auckland-based company, supplied computer-designed prefabricated timber wall frames and roof trusses to hardware retailers, independent building companies and contractors throughout the country.

It was alleged that between April 2007 and October 2008, under the direction of Mr Binns, the company told customers frames and trusses sold were manufactured using premium grade timber MSG8.

However, the Commerce Commission said the majority of timber used was a lower grade, which did not have the required characteristics of MSG8.

Mr Binns was charged after the commission launched an investigation when the Department of Building and Housing laid a complaint.

A building inspector noticed timber used in a frame was different to that stated on the specifications.

Commerce Commission fair trading manager Greg Allan said it would not have been possible for customers to know whether frames and trusses were made using MSG8 timber.

"Reliance was placed on the documentation supplied by Total Frame and Truss. Consumers and other retail businesses alike should have been able to trust the information they received about their frames and trusses."

The commission estimated around 4000 structures in New Zealand, particularly around the greater Auckland area, were built using Total Frame and Truss frames and trusses.

The commission said it had received expert advice that there was no risk the frames or trusses would fall, though there was the possibility some frames might bend under extreme conditions.

Since Total Frame and Truss went into voluntary liquidation in April 2009, many businesses have taken the responsibility for the assessment, repair and maintenance costs of buildings where lower grade timber was used.

"These businesses are to be commended for the responsible approach they have taken to this issue, which was not of their making. They, as well as the consumers, are victims of Mr Binns' offending," Mr Allan said.

- NZPA