Construction company cartels

Methinks, there is more to this than meets the eye.. It’ll all come out in a costly tribunal one day.. some things never change… Just projects are disgustingly expensive compared to other countries… From today’s Examiner

Construction industry cartel complaints

By Seán McCárthaigh
COMPLAINTS against the construction industry accounted for the largest number of reports of alleged operation of illegal cartels in Ireland last year.

The Competition Authority recorded 54 individual complaints to its cartels division last year, with more than one in five of all cases made against people and businesses operating in the building trade.

According to the authority’s annual report for 2002 published today, other industry sectors against whom a large number of complaints were reported were transport and marine (18%), fuel (12%), health and medical (12%) and drinks (9%).

One-third of all complaints related to price-fixing, while another third related to alleged abuses of market share.

Members of the public accounted for more than half of all complaints made to the Competition Authority, with another third coming from business interests.

As a result of its investigation into alleged cartels, the Competition Authority served 52 summons on parties as well as obtaining 17 search warrants.

It has also instituted criminal proceedings for the first time since 1999. Two parties are the subject of an ongoing investigation which are awaiting the determination of the Director of Public Prosecutions.

Under legislation, the organisation is responsible for the enforcement of Section 4 of the Competition Act for which breaches upon conviction can result in maximum fines of €4 million or 10% of turnover, plus imprisonment of up to five years.

The annual report noted the authority also helped to avoid a possible contravention of the legislation by issuing a public statement to warn the Irish Pharmaceutical Union that its threat to withdraw certain pharmacy services would amount to a breach of the Competition Acts.

The number of complaints to the Monopolies Division declined in comparison to 2001, with four out of five cases claiming an individual or firm had abused their dominant position.

Insurance, waste and transport sectors accounted for one-third of all complaints received last year. Complaints reported to the two divisions fell from 222 in 2001 to 149 last year.

Commenting on its general work, Competition Authority chairman John Fingleton said it had resolved many important investigations without resorting to litigation by obtaining commitments from parties to change their behaviour.

He said the 2002 report showed the results of greater investment in competition enforcement had led to a reduction in the backlog of cases by 70%. He said last year saw problems of under-staffing largely redressed.

“The quality and varied experience of the people that we have attracted, combined with enhanced powers and functions resulting from changes to domestic and EU competition legislation in 2002 will strengthen our ability to champion competition and ensure that markets work well for consumers and business,” he said.