Thousands of Auckland homes built with shoddy wood

Thousands of Auckland homes were built using shoddy timber which was falsely sold as a higher-grade product.

The sub-grade timber was unwittingly sold by Placemakers and Bunnings, which have paid out $550,000 in tests and remedial work so far.

The Commerce Commission estimated the wood had been used in between 4000 and 7000 homes, garages and extensions mostly in the greater Auckland area.

Company director Larry Roger Binns, 47, was fined $15,000 in the Auckland District Court this week after pleading guilty to 36 charges under the Fair Trading Act.

The commission said Binns, through his company Total Frame and Truss, listed the timber on invoices as a premium grade, suitable for bearing structural loads. It was a cheaper, lower-grade timber and not strong enough to support major loads.

Tests have not shown any structural problems with the buildings, though Placemakers and Bunnings have paid to fix about 200 at a cost of $550,000.

Greg Allan, the commission's fair trading manager, said customers couldn't have known they were receiving the wrong timber, and should have been able to trust the supplier.

He said expert advice indicated there was no risk of the frames or trusses failing, but some may bend under extreme conditions.

Wood Processing Association chief executive Peter Bodeker said the case related to a "rogue operator".

He said the association was pushing to make the timber grade markings larger, and for third-party auditing of all frame and truss manufacturers.

Binns' company supplied the sub-grade wall frames and roof trusses between April 2007 and October 2008. The lesser grade timber would have been identified with red or gray dye, but Binns removed the markings in a process known as "defecting", court documents said.

Binns' lawyer, Warren Woodd, said he'd followed the process for 23 years, which involved cutting out visual defects to make the timber suitable.

Woodd said Binns was unaware of a change in standard in 2007 which meant he could no longer use the practice.

In October 2008 a building inspector noticed red markings on the timber frames and reported the problem.

In her judgment, Judge Allison Sinclair said Binns accepted immediate responsibility and travelled around Auckland and Northland with "volunteer builder friends" to carry out tests on affected houses.

Binns' business went into voluntary liquidation in 2008 owing $1.29 million to creditors, and Binns was now making a living as a truck driver.

The court was told the stress of the case had contributed to the breakdown of his marriage and his financial position was not strong. Binns declined to comment yesterday.

Home Owners and Buyers Association president John Gray said the court decision sent a strong message that directors couldn't escape responsibility by liquidating their company.

"It's a very clear message to the industry that they need to lift their game and take these matters really seriously."

In 2006, Carter Holt Harvey was fined $900,000 for breaching the Fair Trading Act by mislabelling timber as a higher grade. The commission said at the time the timber was unlikely to be a safety issue, but may lead to performance defects such as squeaky floors.