The Guernsey Building Trades Employers Association was responding to a report from the Guernsey Competition and Regulatory Authority which cleared local firm Ronez of profiteering on the production of concrete, aggregates and ready-mix concrete, but noted that prices were high and had risen significantly in recent years.
A spokesman for the association said that many of the States own fees and charges were substantial drivers of building costs and have increased at a greater rate than any private sector supplier.
‘The GCRA’s investigation focused on Ronez’s ready-mix concrete prices which have increased 48% in the last five years and 66% in the last 10 years,’ he said.
‘In the same time periods, States harbour offloading charges have increased by 70% and 87%.
‘States inert waste tip fees have risen an extraordinary 161% in the last five years and 226% in the last 10 years.’
The spokesman said that the GBTEA welcomed the publication of the review, which was sparked by a request from the Economic Development Committee for concrete and aggregate costs to be investigated.
‘We are pleased that this independent investigation has taken place, as it provides much-needed clarity on an issue that has generated considerable discussion within the construction industry and more widely,’ the spokesman said.
‘We welcome the report’s conclusion that it found no evidence of wrongdoing or anti-competitive behaviour on the part of the island’s ready-mix concrete supplier.
‘An independent review was the appropriate way to establish the facts, and we are pleased that the findings provide reassurance on this point.’
He said that the report also highlighted several structural challenges faced by Guernsey’s construction sector, including freight and shipping costs, higher staffing costs, and the limited economies of scale of a small island market.
In its report the GCRA proposed several measures to try to bring down the cost of concrete and aggregate products, including the States taking a stronger role as a client in terms of isolating such items as part of a contract.
The GBTEA said that it supported continued dialogue between industry and the States to explore practical measures that can improve transparency, encourage competition where possible, and help ensure a resilient and sustainable construction sector delivering value for the island.
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