Deltanine

Billionaire Graeme Hart is forcing suppliers to Carter Holt Harvey's building products retail chain to reduce their prices as he moves to cut costs across the company's operations.

In one of the estimated 2500 letters to suppliers, Carters national timber buyer Jarrod Langstone wrote that Hart, CHH's new majority shareholder, was working with all divisions of the company to improve performance.

"As part of this review, it has been brought to our attention that Carters is behind market standards in terms of supplier rebate.

"Consequently, Carters will be introducing a rebate ... on total purchases, which we will deduct automatically off your account, effective from January 1, 2006."

In my time working at a joinery factory which was both customer and supplier to CHH (they supplied door jam) I learnt what an evil company CHH is - they used their size and dominance even then to screw the little guy - never ever paid their bills on time - often months late - but getting heavy handed whenever their own invoices were a day late.

One of the suppliers said it was not in a position to give a rebate.

"Why should we, who have slogged at this business for years, make less money so that Graeme Hart can get even more ridiculously rich than he already is? They haven't even gone out and priced the market to see if our prices are competitive."