The findings of a review that the Guernsey Competition and Regulatory Authority carried out last year have just been published.
It acted after concerns were raised by the Economic Development Committee about rising construction costs and the impact this may be having on housing, investment, and the delivery of essential infrastructure.
But it found that although Ronez was delivering strong profits, especially in ready-mix concrete, where it is the island’s sole supplier, its prices ‘reflected the structural realities and costs of operating in a small island market’ rather than anti-competitive behaviour.
‘Higher prices or profits alone do not mean rules have been broken, there must be clear proof that pricing is unjustified. Our review did not find that evidence,’ the GCRA said.
Chief executive Michael Byrne said the review confirmed that local concrete costs were shaped by structural challenges rather than unlawful behaviour.
The report, he said, offered no single quick fix for the issue, but highlighted suggestions where the States could help to improve how the market works.
Ronez managing director Steve Roussel said that the company was not surprised by the GCRA’s findings.
‘We welcome the conclusion that Ronez’s market position is not the result of exclusionary behaviour, but that we face structurally higher costs than UK suppliers, that our prices are not excessive and have generally increased in line with or more slowly than for comparable products in the UK,’ he said.
‘These are the realities of operating in a small island market rather than anti-competitive behaviour.
‘We are proud that Ronez remains a profitable business, but the GCRA study has found that returns are not excessive in either scale or duration.’
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