CRH companies not listed in its annual report

Cement Roadstone Holdings (CRH) has 11 operating companies in Ireland which are not listed in its annual report.

Details of the companies and the shareholdings involved were given to the Tanaiste, Ms Harney, during a meeting held to discuss allegations being made against the group.

The companies account for approximately 3.5 per cent of its turnover in Ireland.

Senior representatives of the company met Ms Harney and officials from her department in October.

Mr Anthony O'Loghlen, managing director of CRH, Ireland, sought the meeting in June after Ms Harney met members of the Quarry and Concrete Family Alliance, a group which is heavily critical of CRH, in February.

Mr O'Loghlen said CRH took the allegations being made by the group "extremely seriously" and wanted to meet with Ms Harney. The allegations made by the alliance "are without foundation and, if taken as fact, have the potential to damage the reputation and the business of CRH plc."

Documents concerning CRH and held by Ms Harney's department have been released following a request under the Freedom of Information Act.

In a letter to Mr Des O'Malley in July, Ms Harney said that following her meeting with the alliance she was pursuing inquiries about the beneficial ownership of a number of companies.

She sought advice from the Chief State Solicitor's Office (CSSO) in relation to a number of alleged breaches of company law, and specifically on "hidden ownerships" and the obligations of a company to disclose subsidiaries.

It is not known what response, if any, she received from the CSSO as documents relating to its work were not released. The alliance complained about CRH having overlapping directorships with other companies including the main banks. In a reply on Ms Harney's behalf it was stated that "the only restrictions which the Companies Acts place on directors, in this regard, is in relation to the obligation to disclose details of all directorships held. The number of such directorships is limited to 25 under the Companies Amendment Act 1999."

The alliance was very unhappy with the Tanaiste's response and the department was informed of this by telephone.

A representative "considered the response it received to be totally unsatisfactory and that in the light of that response it now considered that the department was washing its hands of the issue," according to an official's note of the phone call. "I told him this was not true."

The briefing material prepared for Ms Harney's meeting with CRH included a note stating that any case being taken by the Competition Authority against CRH would be a matter for the authority and would have to be defended in the courts.

After the meeting, one of the officials who attended sent a memo stating: "No problems at the meeting; Tanaiste was happy. Visitors made a presentation covering their operating companies and activities. They wanted to set the record straight . . . I am doing a report of the meeting and will circulate it." The report of the meeting was not released following the Freedom of Information request on the basis that the information contained in it was confidential.

A presentation made to the Tanaiste by the CRH executives was released and included details of the companies which are not listed in the CRH annual report and the shareholdings involved.

The companies and the shareholdings are: Ryan Bros (Ennis) Ltd (100 per cent); Kilkenny Tarmac Ltd, (51 per cent); Southern Tarmacadam Ltd (100 per cent); Creeves Quarry Ltd (100 per cent); Kirwan Quarries Ltd (51 per cent); Joseph Hogan Ltd (51 per cent); Ballintra Concrete Ltd (100 per cent); Ardfert Quarries Ltd (49 per cent); Castlemore Quarries Ltd (50 per cent); Wicklow Concrete Ltd (100 per cent); National Concrete (100 per cent).

The presentation stated CRH has grown to be the fourth largest building materials group in the world with 83 per cent of its 1999 profits coming from outside the Republic. "Worldwide CRH has interests in approximately 600 companies, of which 150 of the principal subsidiary and associate companies are listed in the annual report."

"It is part of our strategy to maintain the local identity and management of acquired companies and accordingly to retain the name of the acquired company. The ownership of all subsidiary companies is held through legitimate transparent structures."