Photo: supplied
Fletcher Building has reached a multi-million dollar settlement over the issue of leaky pipes in Western Australian homes which has dogged the company.
Fletcher Building shares had been on a trading halt ahead of the announcement. Trading will begin again soon.
It has just told the NZ stock market that it will have to set aside $A155 million ($168 million) in its next financial statement to cover the settlement. The West Australian government will pay up to $A30m ($32.5m).
Fletchers said it expects the first year of the settlement will need some $A40m ($43m) to $A50m ($55m), and in subsequent years in the order of A$15m($16m) to A$35m ($38m).
At issue has been who is responsible for leaky pipes in Western Australian homes. The pipes are manufactured by Fletcher’s Iplex subsidiary.
Perth-based building firm BGC blamed Iplex for the bursting and leaking pipes, but Fletcher had said installation was the problem. Fletcher and the West Australian government had been in mediation over who would pay.