CRH, Quinn group found to be operating price fixing

THE State's two biggest cement companies, the Sean Quinn Group and CRH have been found to be among five companies operated a …

THE State's two biggest cement companies, the Sean Quinn Group and CRH have been found to be among five companies operated a price fixing agreement in the Northern Ireland market between 1985 and 1992.

An action in the British Restrictive Practices Court, which made orders against five concrete flooring companies in Northern Ireland, has shown that CRH subsidiary, Breton Precast, and the Sean Quinn Group were party to an agreement to fix product price.

Other Northern companies involved in the price fixing cartel were, Foylespan Floors of Limavaddy, William A Lees (Concrete) of Magherafelt, and Spandeck of Portadown.

CRH has consistently rejected claims that it has colluded with other cement companies to fix prices and is currently appealing a £2.8 million fine imposed by the European Commission for being part of a European price fixing cartel.

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A CRH spokesman yesterday stressed that the ruling in the British courts in relation to its subsidiary referred to "one contract," and said no further price fixing agreements existed.

CRH accepts that "it shouldn't have happened" he said. Breton Precast, which is part of the TB Thompson group, he added, is run independently" and had moved to change its compliance procedures on foot of the findings, of the British Office of Fair Trading (OFT).

The offending contract is understood to have been fulfilled some time ago.

The undefended hearing in the British court was taken by the OFT following an investigation into the pre-stressed and reinforced concrete flooring business.

The court made orders against four of the companies, and accepted an undertaking from Breton Precast that it would not implement any formal agreements without first consulting the OFT.

Meanwhile, the company has lodged an appeal against the £2.8 million European Commission fine, and is awaiting a date for its hearing. The company has said that it intends to "vigorously" contest the fine.

It related to another of the Group's subsidiaries, Irish Cement Limited, which, along with 32 European cement producers, was found to have entered into agreements to exchange price information with other firms between 1983 and 1986.

Critical of the lack of competition between member States, the European Commission investigated companies in 12 countries suspected of conspiring to fix prices and production quotas.