A tale of low and high pricing emerges in evidence

BACKGROUND:Tom Goode claims that there was a cartel operating in the Dublin market

ACCORDING TO Tom Goode, chairman of Goode Concrete, there is a long history of collaboration in the Irish cement and concrete businesses.

Goode sold his original cement business to CRH in 1984 for between £2-3 million, but kept its concrete operation. Goode claims that CRH made it a condition that his company join a cartel involving CRH subsidiaries, along with CPI, Readymix, Kilsaran, and Spollen Concrete, which fixed prices for the supply of concrete and blocks in the Dublin market.

Goode’s involvement with the cartel ended in 1987 when he sold the concrete business to Kilsaran. He left the business altogether until 1993, when he formed Goode Concrete.

In 2002, Goode entered the Galway market. According to Barry Goode, it began selling concrete for €75 a cubic metre in 2003. Shortly afterwards, the price in the area fell to €50. Barry Goode’s affidavit says that this was as a result of concerted action by subsidiaries of the CRH group and Kilsaran, among others.

The company stayed in business there over the next two years, despite what Barry Goode says was an unsustainably low price. In April 2005, he says he was approached by Jim Burke, director of another operator, Lackagh Rock, who offered to meet to see if something could be done to increase the price.

He agreed and it subsequently emerged that there was a cartel operating in the region. Barry Goode says that the main driver of this was Roadstone.

Goode Concrete was allocated certain contractors. Once it bid a certain price to supply these businesses, the other members would not offer a lower figure. The contractors included Michael McNamara and Purcell Construction. Goode would offer between €83-85 a cubic metre to these companies.

In his affidavit, Barry Goode says: “It is my understanding that this arrangement, which was put in place and driven by Roadstone Provinces, was designed to ensure that Irish Cement would continue to be able to charge consistently high prices to concrete manufacturers for cement.”

Roadstone and Irish Cement are part of CRH. Goode claims that as the latter supplied most of the concrete manufacturers in the region with cement, it supported and co-ordinated the cartel.

Barry Goode acknowledges that for most of the period, his family’s company was part of this arrangement, but claims this was only because it feared it would be driven out of business.

CRH and Kilsaran are defending the action.