A review into the high price of concrete has found that the States need to step in and develop ‘market-shaping measures’ to counter the problem.

The Competition and Regulatory Authority was asked to look at the price of concrete specifically – and it has confirmed that prices in Guernsey are higher than in the UK.

Despite Ronez being the only supplier of concrete on-island, the GCRA said the high price is not the company’s fault – as the reason behind the pricing is “likely to be structural and not down to anti-competitive behaviour”. 

“But it’s clear that these structural factors are leading to market outcomes that are bad for consumers,” warned the GCRA. “Expensive building materials could mean higher housing costs, public projects costing more, with a knock-on effect for taxpayers, and even developments getting delayed or cancelled. So action is required but the solution will lie not in legal enforcement but rather in policy and market-shaping measures.”

Pictured: Ronez was found not to have breached competition rules (data from the GCRA review).

The study was launched following concerns raised by the Committee for Economic Development about rising construction costs and the impact this may be having on housing, investment, and the delivery of essential infrastructure.

The GCRA review has confirmed that as well as prices being “significantly higher” on-island than in the UK, it is not a competition issue.

“Competition law requires strong evidence before action can be taken,” said the GCRA.

“Higher prices or profits alone do not mean rules have been broken, there must be clear proof that pricing is unjustified. Our review did not find that evidence.”

Instead the GCRA has said its review “shines a light on wider challenges that limit competition and keep costs elevated across the construction supply chain”.

“The findings provide a strong evidence base to help policymakers and industry consider how outcomes could be improved over time.”

Alongside its analysis, the GCRA review has identified “several practical approaches that could help strengthen transparency, encourage greater choice, and support a more resilient market”.

These include improving transparency around pricing and performance, exploring open-book approaches in public procurement, reducing barriers to alternative supply where possible, and supporting greater competition and workforce mobility within the sector.

Michael Byrne, Chief Executive of the GCRA, said the Authority will continue to work with the States of Guernsey and industry stakeholders as these ideas are explored further.

“This review confirms that concrete costs in Guernsey are shaped by structural challenges rather than unlawful behaviour,” he said. “There is no single quick fix, but it highlights clear ways that the States can help improve how the market works, addressing long-standing barriers to supply, strengthening competition over time, and delivering better outcomes for consumers and taxpayers.”