Hartner's domino effect on industry

At least eight property related companies employing nearly 1000 people have gone under because of the Hartner collapse, says building disputes arbitrator Geoff Bayley.

He said the eight companies had a combined annual turnover of $45.5 million, but were owed an alleged $2.45 million by Hartner Construction or Hartner Group.

Although the debts might not have always been large, they were "the straw that broke the camel's back." Mr Bayley said.All were Auckland companies and most had failed in the past 18 months.

The companies are: Steel Technology, Alotech Walls & Ceilings, IBS (NZ), Accord Ceilings and Partitions, Project Design, Tim Sullivan, Hornsby Earthmovers and Roger Devonshire Blocklayers.

Mr Phil Ellis of IBS backed Mr Bayley's calculations, but said the damage was probably much higher and more like 100 companies.

"You get the flow-on effect of one person going broke and others underneath that, so a lot of companies park up on the basis that they might get money out of Hartners."