I have had questions from Deputy Dick Spring, Deputy Proinsias De Rossa, Deputy John Bruton and Deputy Martin Cullen concerning the subject matter of Irish Distillers Limited. I will call the Deputies in the order in which they submitted their questions to my office.
Private Notice Questions. - Irish Distillers Group.
asked the Minister for Industry and Commerce if he will make a statement on the possibility of a take-over by foreign owned companies of Irish distillers, having regard to the fact that this is the last wholly-owned Irish manufacturing company in this sector and particularly having regard to the potential threat to brands and jobs involved; and the steps he proposes to take to ensure that this company remains under Irish control.
asked the Minister for Industry and Commerce if, in view of the enormous implications for the Irish distilling industry of the proposed take-over of Irish Distillers Ltd., he will refer the matter to the Director of Fair Trading; and if he will make a statement on the matter.
asked the Minister for Industry and Commerce if he will make inquiries in the context of the fair trade legislation and the provision of the Treaty of Rome into whether the recently announced bid for Irish Distillers could create a situation in regard to competition which would warrant its being halted or modified under either domestic or EC law.
asked the Minister for Industry and Commerce if, as a matter of urgency, he will refer the bid to the Irish Distillers Group by Cantrell and Cochrane and Gilbeys of Ireland Group Ltd., known as GC&C Brands Ltd., to the Director of Fair Trading under existing Mergers, Takeovers and Monopolies (Control) Act, 1978; if his Department have contacted the EC Commission regarding the application of EC legislation; and if he will make a statement on the matter.
I am aware that a company, GC&C Brands Ltd., intend to make an offer for the entire issued ordinary share capital of Irish Distillers Group, plc. This proposed offer, when made, would be notifiable to me pursuant to section 5 of the Mergers, Take-overs and Monopolies (Control) Act, 1978. On receipt of notifications from the parties involved, the proposal will be considered by me in accordance with the Act.
Following receipt of a notification of a proposed merger or take-over I am empowered under the Act, inter alia to inform the enterprises concerned that I do not intend making an order prohibiting the proposed acquisition, or, to refer the notification to the Fair Trade Commission for examination of the proposal in relation to the criteria set out in the schedule to the Act and, having considered the Commission's report in the matter, to inform the enterprises concerned that I do not propose to make an order in relation to the proposal or, if I think the exigencies of the common good so warrant, by order to prohibit the proposal either absolutely or except on conditions specified.
On the basis of the information available to me at this time, it is likely that the proposal would be referred to the Fair Trade Commission for examination. It would be inappropriate for me to comment further on the matter pending detailed consideration of any proposals notified to me.
Will the Minister accept and state in the House that it would be extremely undesirable for Irish Distillers to fall into the hands of foreign ownership? Will he also accept that one of the first consequences of a takeover would be a major threat to many thousands of jobs and to many of the brands manufactured by Irish Distillers, which will be in direct competition with some of the brands marketed by the takeover bidders?
I am sure that the Deputy and the House will agree that it would be totally inappropriate for me, at this stage, to make any further comment. I have a statutory duty to perform in relation to this matter when arriving at a decision and I do not intend to pre-empt that decision by any comment at this stage.
Will the Minister agree that one of the primary concerns of Irish Distillers must be the maintenance of a distilling industry in the State? Will the Minister have these as his priority concerns when he is considering whatever application is brought before him?
My position under the Act is specifically laid down under nine criteria. The question raised by the Deputy comes into focus under one of them. However, I should like to remind the House that I have not received a notification of any takeover bid. I have read in the newspapers that a bid will be made but I have not received notification and I do not intend to comment on it.
Every Deputy in the House got a copy of the takeover bid.
In view of the importance of the matter of enjoyment and the dangers to free competition in the drinks trade here and in Europe at large, in addition to the procedures the Minister indicated in his reply, will he draw this matter to the attention of the EC Commission in view of the specific provisions in Article 86 of the Treaty of Rome which prohibit the creation of a dominant position in any particular trade within the Community?
The question of competition or a dominant position in the marketplace is one of the criteria laid down in legislation and when I get notification I will look at every possible aspect in relation to it. I am not prepared to comment any further at present.
Will the Minister examine every aspect in an EC context also?
Yes.
Will the Minister agree that the legitimate cause for concern in regard to this bid is that the company involved already control 60 per cent of the Scotch whisky market? They are the main competitors of Irish whiskey, not alone in this country, but on the international market and the future of Irish whiskey is of particular concern in relation to this bidder. Will he take special cognisance of that when he is considering the matter? Will the Minister also agree that this is a very good example of the type of competition which will occur in 1992? Irish companies should be aware of this and realise that they must be the prime movers in linking with compatible companies who are not hostile to their position in the market. There is an onus on the Government to get this message through and they should use this as an example——
The Deputy is introducing new matter to the question.
The Government are pursuing the question of keeping everybody in industry informed as to the implications for 1992. A vigorous national campaign will be launched by the Taoiseach in early July——
It was supposed to be launched in June.
(Interruptions.)
We can go to Australia and do a good job in Ireland at the same time. Do not worry about that.
Somebody loves the Taoiseach.
All the questions which Deputies asked are part of the criteria statutorily laid down and of which I must take account when reaching a decision. I will not comment any further in that regard.
Deputy Spring rose.
I will allow a very brief supplementary question from Deputy Spring and then one from Deputy Cullen.
In the interests of clarity, did the Minister say he did not receive any information, other than that contained in the newspapers? I got the impression yesterday morning that most Deputies of this House were circularised with detailed information in relation to this bid? Will he now instruct the Director of Fair Trading to investigate the situation and to issue a full report immediately in view of the urgency of the question?
I presume I got what other Deputies received, a press release with the full details of a bid. However, a bid has not been made as far as I am aware and I have not received any official notification.
Will the Minister take into account the existence, as a result of a previous takeover in the UK of the Scottish distilleries, of a whisky lake which means that they are able to undersell Irish whiskey in this country? This is also a danger and I ask the Minister to take it into consideration.
Every aspect will be taken into account.
Irish whiskey is inherently superior to Scotch whisky.
The Minister will have to accept Deputy Bruton's word for that.
(Interruptions.)