CRH plc - Corruption & Political Influence over the years

[barrym]

Just a point, I notice recently that I get Lafarge cement when I pick up the odd bag in the Co-Op. Lafarge, afaik, have been the subject of cartel etc., investigations in France and elsewhere.

One could assume that CRH and Lafarge have heard of one another?

Also, what about Lagan Concrete's fit in all this?

It stinks, nothing new then....

[Baron von Biffo]

Let me explain. The ISBA is definitely not a one man operation. It started out back in the 1990s as the Quarry & Concrete Family Alliance (QCFA) which was an alliance of numerous quarry operators in Ireland who were either under anticompetitive attack from CRH and the cartel or had been put out of business by CRH and the cartel.

As anticompetitive practices became more apparent in other industries around Ireland, the Irish Small Business Alliance (ISBA) was founded and the QCFA was incorporated into it. The Irish Small Business Alliance mainly concentrates on Competition Law issues in Ireland throughout a variety of industries.

The wealth of knowledge accumulated by the ISBA in relation to Competition Law and specifically the cement and concrete industry became so much that we were effectively head-hunted by numerous companies in various countries (Australia, Belgium, Britain, Canada, Germany, New Zealand and USA) who were under anticompetitive attack by the major operators in the industry worldwide. As our operations became more globalised we thought that International Small Business Alliance would be more appropriate.

In relation to Ireland we provide advice on Competition Law issues throughout all sectors and champion the improvement and enforcement of Competition Law. Internationally we tend to concentrate on the cement, concrete and aggregates industry and the anticompetitive characteristics of those sectors.

The ISBA has done a significant amount of work in Britain and was pivotal in the initiation of an investigation by the Office of Fair Trading (OFT) into the cement and concrete industry. The OFT has laid down adverse findings against the major operators in Britain and has referred the entire industry to the Competition Commission who are currently conducting an investigation. A multi-billion pound fine against the major operators is expected.

I hope that clears up any confusion.

Thanks ISBA.

Do you have a list of businesses that are members of the alliance? Are you registered as a company and/or charity? Do you have paid staff?

[ISBA]

Just a point, I notice recently that I get Lafarge cement when I pick up the odd bag in the Co-Op. Lafarge, afaik, have been the subject of cartel etc., investigations in France and elsewhere.

One could assume that CRH and Lafarge have heard of one another?

Also, what about Lagan Concrete's fit in all this?

It stinks, nothing new then....

Yes, Lafarge have been found guilty of operating cartels and fined heavily in numerous jurisdictions around the world. They are currently under investigation by the Competition Commission in the UK and by the European Commission.

Lafarge have operated in Northern Ireland for years but never came down into the Republic until recently. One can only come to the conclusion that their entrance to the Republic's market was due to the impending investigations. In 1994, the European Commission found Lafarge and CRH among others guilty of operating a pan-European cartel. One of the main findings by the Commission was the operation of a non-transshipment agreement between the cartel players i.e. I won't enter your market as long as you don't enter mine. We suspect that this agreement was/is held between Lafarge and CRH.

Interestingly CRH are importing small amounts into the UK mainland (for half of the price they are charging in Ireland) where Lafarge has a 50% market share. It would appear to compensate CRH for Lafarge's entrance into the Irish market so the agreement still seems to be alive and well.

And while the European Commission investigate the industry in ten European countries excluding Ireland the Irish Competition Authority sit back and do nothing. Just like the Financial Regulator failed the Irish people, the Competition Authority is doing it in a similar fashion and it's costing consumers and the State dearly.

[ISBA]

Thanks ISBA.

Do you have a list of businesses that are members of the alliance? Are you registered as a company and/or charity? Do you have paid staff?

We don’t have members as such. We are more a loosely based alliance of companies who are either under anticompetitive attack or have been put out of business. We are not in a position to disclose the names of individual companies as I’m sure you will understand that by doing so might result in an increase in the frequency of attack against those companies. Suffice it to say that the main industries we advise include quarry & concrete (obviously), motor, retail, retail distribution, recyclable waste, and renewables. We are always open to helping companies in other industries.

We currently have two full time economists, one part-time solicitor, one part-time legal advisor, one secretary and a number of people around the country who work for us on a voluntary basis. The founder and coordinator of the ISBA is Seamus Maye. For completeness I should also add that Seamus is a director of Cartel Damage Claims, a Brussels-based group of companies who specialise in the purchase, the preparation and the enforcement of damage claims resulting from the infringement of European and/or national Competition Law.

Due to the nature of anticompetitive practices and the resistance to our movement by the Irish State, many of the companies who were/are affiliated with the ISBA have been put out of business. We are currently looking at taking an action against the State.

[fluffybiscuits]

I wrote a blog post about the illegal building of a wall in Israel allegedly by CRH

http://www.fluffybiscuits.org/2012_03_01_archive.html

A lot of questions to answer there from CRH in relation to these issues. Excellent post and very well put together

[ISBA]

In September 2011 RTE reported that a whistleblower had come forward and given valuable information to the Competition Aurhority in relation to a concrete cartel. One year later there still has been no dawn raid of CRH's offices. Why not?

[ame="http://www.youtube.com/watch?v=MbaskBTCmKE"]http://www.youtube.com/watch?v=MbaskBTCmKE[/ame]

[ISBA]

FYI - Our alliance made a full submission to the Moriarty Tribunal and Justice Moriarty is quoted as saying:-

"I appreciate that your alliance is a substantial and highly reputable body that obviously has understandable concerns in seeing that this aspect of the Tribunal business inquired into properly and sufficiently, and from my knowledge of that previous correspondence, I value significantly the assistance that you, and through you your members, have furnished in assisting the Tribunal in its preliminary inquiries."

[disability student]

In September 2011 RTE reported that a whistleblower had come forward and given valuable information to the Competition Aurhority in relation to a concrete cartel. One year later there still has been no dawn raid of CRH's offices. Why not?

http://www.youtube.com/watch?v=MbaskBTCmKE

Interesting.... did you ever wonder why did the competition Authority didn't do the follow up?

Think will have to look at Competition Authority later.

[fluffybiscuits]

Interesting.... did you ever wonder why did the competition Authority didn't do the follow up?

Think will have to look at Competition Authority later.

+1

Could we lash an FOI request in to see if anything was done?

[ISBA]

+1

Could we lash an FOI request in to see if anything was done?

They would just tell you that they cant comment on on-going investigations but the reality is that this has been on-going since the Competition Authority came into being. In the 21 years of the Competition Authority's existance no adverse findings have been made against CRH in Ireland in relation to Competition Law, despite CRH being finded substantially in other jurisdictions.

[fluffybiscuits]

They would just tell you that they cant comment on on-going investigations but the reality is that this has been on-going since the Competition Authority came into being. In the 21 years of the Competition Authority's existance no adverse findings have been made against CRH in Ireland in relation to Competition Law, despite CRH being finded substantially in other jurisdictions.

What about raising the issue with the relevant minister and making some noise with the media? Indymedia and thejournal usually would be interested in things like this. Tell the Competition Authority you are going to go to the media if things dont start happening, there has to be some sort of accountability from them...

[ISBA]

What about raising the issue with the relevant minister and making some noise with the media? Indymedia and thejournal usually would be interested in things like this. Tell the Competition Authority you are going to go to the media if things dont start happening, there has to be some sort of accountability from them...

Unfortunetly the relevant Minister is Richard Bruton. He worked as an economist for CRH before he entered politics. He was also a shareholder until we started to make noise last year about his conflict of interests. See below links to Parliamentary Questions which were put to Richard Bruton about about the cement/concrete industry. Please also note the reponse we submitted below Minister Bruton's reply. The questions were asked by four different TDs from four different parties.

http://www.kildarestreet.com/wrans/?...ement#g632.0.q

http://www.kildarestreet.com/wrans/?...ment#g1330.0.q

http://www.kildarestreet.com/wrans/?...ement#g943.0.q

http://www.kildarestreet.com/wrans/?...ment#g1291.0.q

As regards the Competition Authority, they see CRH as too big to tackle and told some of our members that in a meeting last year. The Competition Authority stated that because of who CRH was and the power and influence they had they [the Competition Authority] would not be investigating them [CRH].

[C. Flower]

Unfortunetly the relevant Minister is Richard Bruton. He worked as an economist for CRH before he entered politics. He was also a shareholder until we started to make noise last year about his conflict of interests. See below links to Parliamentary Questions which were put to Richard Bruton about about the cement/concrete industry. Please also note the reponse we submitted below Minister Bruton's reply. The questions were asked by four different TDs from four different parties.

http://www.kildarestreet.com/wrans/?...ement#g632.0.q

http://www.kildarestreet.com/wrans/?...ment#g1330.0.q

http://www.kildarestreet.com/wrans/?...ement#g943.0.q

http://www.kildarestreet.com/wrans/?...ment#g1291.0.q

As regards the Competition Authority, they see CRH as too big to tackle and told some of our members that in a meeting last year. The Competition Authority stated that "because of who CRH was and the power and influence they had they [the Competition Authority] would not be investigating them [CRH].

Good god. Did they put that in writing ?

[ISBA]

Good god. Did they put that in writing ?

No, they didn't but witnesses made contemporaneous notes of the meeting. We are just after looking up the notes and the exact wording which the Competition Authority used was as follows:-

"There isn’t a hope of the authority investigating this behaviour [concrete and cement cartel] because of who you are up against and what’s at stake”

[C. Flower]

No, they didn't but witnesses made contemporaneous notes of the meeting. We are just after looking up the notes and the exact wording which the Competition Authority used was as follows:-

"There isn’t a hope of the authority investigating this behaviour [concrete and cement cartel] because of who you are up against and what’s at stake”

Has the Authority ever investigated the company or the sector ?