Benchmark Building Supplies Ltd has been fined $1000 today for its second conviction for selling falsely graded timber.

Benchmark was prosecuted by the Commerce Commission and, in the Thames District Court, pleaded guilty to breaching the Fair Trading Act. The Commission understands that regrading of timber is common in the building industry.

Commission Chairman Dr Alan Bollard said "The Commission is pleased that the judge in his comments indicated that it was an act that required a deterrent penalty. However, the level of fine is very disappointing, particularly as it is Benchmark's second offence and it is the sort of thing that can have significant economic consequences."

The Commission will consider its options in respect to the level of penalty imposed.

Dr Bollard said Benchmark's Whangamata branch supplied grade 2 and box grade (an even lower grade) timber to the builder who had ordered grade 1 framing timber for his house in Matarangi.

The building standards require certain load bearing walls to be framed with grade 1 timber. Using lower grade timber instead, could lead to an unsafe building.

The builder received a quote and invoice for grade 1 timber but noticed that some of it was marked as grade 2.

He discussed this with Benchmark and was told that it was industry practice to regrade grade 2 timber as grade 1. This is done by cutting off sections of lower grade timber so that the remaining timber meets the grade 1 specifications.

The Commission had four samples of timber from the builder's site tested by the New Zealand Forestry Research Institute. All the samples were box grade. The Institute also examined photos of timber already used for framing the house and gave an opinion that most of it was grade 2.

Benchmark was unable to confirm how much of the builder's order was grade 1. It had no procedures in place to check that regrading was being done properly.

In October last year Benchmark pleaded guilty to falsifying timber grades and charging customers for more timber than was supplied. The company was fined $750 for the charge relating to false timber grading on that occasion, although it also voluntarily paid $42,650 compensation and in total it and its Sulphur Point Branch Manager were fined a total of $6,250.

"Even if Benchmark's actions on this second occasion were grossly careless, rather than deliberate, it still failed in its responsibility to comply with the law - it made false claims about the timber," Dr Bollard said.

"It could also have created a serious financial or safety risk. A building framed with grade 2 timber could fail a building inspection and this would cause vast expense to the owner. But if it passed the inspection, a dangerous building could result."

Media contact: Keith Manch, Manager, Fair Trading Division

Phone: 04 4980908 work and 04 4797105 home