CRH criticised as `octopus' within economy

Cement Roadstone Holdings (CRH) came in for substantial criticism in the Dail during a debate on legislation to repeal the Cement Acts.

Mr Joe Higgins (Socialist, Dublin West) said the Cement Act gave a monopoly to Cement Ltd in the 1930s which subsequently created a private monopoly which had huge power in the cement and related industries.

"Since then we have had nothing short of a ruthless policy by the CRH monopoly of bullying of small competitors, sharp practice and unfair trading, driving small operators out of the market.

"It bought its competitors, usually by pressuring them so they had no option but to sell."

CRH was "like an octopus within the Irish capitalist economy. Its directors were also directors of the biggest banks, Allied Irish Bank and Bank of Ireland, and there was an intermeshing of directors with many other companies, industries and powerful institutions."

Ms Theresa Ahearn (Fine Gael, Tipperary South) said while the Bill would remove the protection given to CRH, "all of us must ask if it will still be in such a strong position that it will be difficult for potential investors to enter the market. The Government must examine what can be done to help other companies enter the market and compete with CRH."

Mr Michael Bell (Labour, Louth) whose family worked in the cement industry, said Irish Cement Ltd, which subsequently became part of CRH, played a major part in the economy of Drogheda and the country. It provided substantial employment and conditions improved substantially but that did not happen "without a terrible price being paid and a dreadful struggle by the workforce, which was led by the trade unions".

He suggested that the three huge quarries on the north side of Drogheda could "probably take all the refuse from Dublin city for the next 100 years without it been seen".

The Minister of State for Enterprise, Trade and Employment, Mr Noel Treacy, replying to the debate, said while breaches of company law were not relevant to the Bill, he assured the House that the Tanaiste, Ms Harney, had undertaken to look into Seanad allegations about the activities of CRH as the sole licensee.

The Minister was also aware of allegations of anti-competitive behaviour which were part of a detailed submission by the Quarry and Concrete Family Alliance. That had been brought to the attention of the Competition Authority.

Mr Treacy said the existing legislation was unused because it was more than 20 years since an application for a licence had been made to the Department.

He pointed out that the Bill had been welcomed by large and small producers in the building materials industry, in the context of the Government's programme of regulatory reform.