OFT to probe aggregates industry

Published:  07 September, 2010

LONDON: The Office of Fair Trading will investigate the aggregates industry to assess whether the tax payer is getting a fair deal from suppliers of sand, gravel and broken rocks to road and housebuilders.

The OFT said the £4.8bn a year aggregates sector had high barriers to entry, was increasingly concentrated at a local level and was subject to government involvement due to a national system of output controls. Heather Clayton, the OFT's infrastructure director said: "Because the cost of aggregates is reflected in the price consumers, and tax payers, pay for essential infrastructure, from housing through to roads and major capital building projects, it is important that the market is as competitive as possible." The OFT said in a statement today that it would speak with key parties directly as part of its market study which will aim to identify any market failures and the impact of government regulations.

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