Harney to deregulate cement industry

The Government has approved a proposal from the Tanaiste, Ms Harney, to deregulate the manufacture of cement.

At present the only company with a manufacturing licence under the Cement Acts 1933-1962 is CRH plc, formerly Cement Ltd. The Sean Quinn group, which manufactures cement for the Republic, has its manufacturing facilities in Co Fermanagh.

It is understood the Sean Quinn group is considering building a manufacturing facility in Ballyconnell, Co Cavan, and has already received Environmental Protection Agency approval and planning permission from An Bord Pleanala. Other firms are understood to be in the process of locating plants in Co Meath and Co Mayo.

The laws governing the manufacture of cement were introduced to promote the development of an indigenous cement industry. Under the Cements Acts, a company could not manufacture cement unless it obtained a licence to do so from the Minister for Enterprise, Trade and Employment. These acts are now to be repealed.

Ms Harney, announcing the Government's decision, said the laws were no longer necessary. "This kind of outdated regulation could discourage market entry or restrict the potential for greater price competition. The cement industry no longer needs a manufacturing licensing regime to determine the pace of developments in our home market."

She said the price of cement in the Republic in 1997 - £55 (€71.11 per tonne) - was the fifth highest in the EU. "I believe that a deregulated regime will encourage new market entrants to manufacture cement in Ireland leading to greater domestic competition and a better deal for purchasers of cement products. "My objective is to facilitate more players in the market in the interest of keener price competition, as quickly as possible."