Building material costs to come under the microscope

Thursday 26 September 2024

Guernsey’s building materials industry is likely to be reviewed as concerns mount about the costs when compared to elsewhere.

Economic Development is ready to ask the Guernsey Competition and Regulatory Authority to conduct a market review as the States grapples with issues around building affordable homes in the island.

Freight services could also come in for similar attention, ED said. 

"There's more than a likelihood that the committee will be recommending some sort of market review, but with some challenges," said Economic Development President Neil Inder in the States.

"There's no point having a market review if all we've got is something at the end of the report that says, basically, this is good, this is bad. What actually happens at the end of the review? What are the action items that the government can put in place to affect change to whatever we find is problematic?"

Previous debates have heard how the cost of a concrete block in Guernsey is £2.93 compared to £1.30 in southern England.

Deputy Inder was answering a question from Deputy Gavin St Pier about whether his committee had taken any action to instruct and fund the GCRA to look at the issue of competition in the building materials industry.

Deputy John Gollop also asked what could be done to reduce the cost of building housing.

Deputy Inder said: "Statements become fact in Guernsey, 'everything in Guernsey is 30 cent more than than everything else,' and once you say it three times, it becomes truth and we end up repeating it. But no one ever goes back and checks. And I'd like to know. So maybe we do need a review on freight. Maybe we do need a review in the construction industry. So let's go and find the facts."