'Twice as high' cost of island concrete questioned
'Twice as high' cost of island concrete questioned
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Jake Wallace
BBC News, Guernsey
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The Committee for Economic Development has asked the Guernsey Competition and Regulatory Authority (GCRA) to conduct a market study on the costs
Guernsey's government has requested a review into the cost of island concrete products after initial investigations found some were "twice as high" as in the UK.
The Committee for Economic Development has asked the Guernsey Competition and Regulatory Authority (GCRA) to conduct a market study on the costs.
The committee said concerns had been raised about prices "materially higher than in the UK or France", which "directly impacts" the cost and feasibility of building.
It said the study would show if prices were too high, given the "higher costs in Guernsey such as labour" and how it could be addressed.
'Consistently more expensive'
The committee said the construction sector played a "critical role" in Guernsey's economy.
"It is a key financial contributor, generating approximately 4.5% of the island's Gross Value Added, while also contributing materially to quality of life by building public amenities such as schools, hospitals, and importantly housing," it said.
The committee added the GCRA had already undertaken some pre-investigation work.
It said: "The GCRA found that Guernsey manufactured concrete is consistently more expensive than the equivalent products manufactured in the UK, with local prices being twice as high in all but one case.
"It is therefore deemed appropriate that more detailed analysis work is undertaken by the GCRA via the market study."
Sector raised 'concerns'
Deputy Neil Inder, committee president, said the study would allow GCRA to use its "statutory powers" to request detailed cost and price information from concrete and aggregate suppliers.
"With the development of housing being a key priority of the States, the prices of input products such as concrete and aggregates directly impact the cost of house building," he said.
"Following concerns over the prices of these products raised by the sector, the committee has asked the GCRA to undertake this study."
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