F&P whiteware prices go up

Whiteware manufacturer Fisher & Paykel is to raise prices this month, following the Government's imposition of penal tariffs on rival products imported from Korea.

Fisher & Paykel said it was raising prices on May 14 because of the weakness of the dollar, and damage caused by alleged dumping of Korean products in New Zealand.

The Government, acting on a complaint by Fisher & Paykel, imposed stiff duties on the Korean importers last month, but will make a final decision on the duties next month.

Wellington businessman Michael Park, the owner of trading company LM Rankine, which sells Korean-made goods, said he had stopped importing whiteware while the Government decision stood.

He said the Commerce Ministry had not compared similar products when it did its initial investigation.

Porirua-based importer Radiola said the higher duties meant prices for the company's goods could rise by up to 40 per cent.

Fisher & Paykel spokesman Richard Blundell would not say how the increase would affect retail prices, because it would depend on retailers' margins.

But the Fisher & Paykel increase is understood to be about 2.5 per cent. Consumers are expected to pay between 5 and 6 per cent more.

Fisher & Paykel is understood to have a whiteware market share of about 65 per cent. Australian firm Email's brands Simpson and Westinghouse make up 15 to 20 per cent and the Korean importers had 15 per cent.

Fisher & Paykel has itself been accused of selling goods more cheaply in Australia than in New Zealand.