Vol. 480 No. 2
33 Mr. Quinn asked the Tánaiste and Minister for Enterprise and Employment if she intends to refer the proposed merger of Avonmore and Waterford Foods to the Competition Authority; and if she will make a statement on the matter. [13741/97]
I was informed on 30 June 1997 of the proposal by the parties under the Mergers, Take-overs and Monopolies (Control) Act, 1978. Further information and clarification is being sought. When I have all the information and clarification I need, I will decide whether a referral to the Competition Authority is warranted.
In anticipation of the Minister's action, will her preference be to allow for the rationalisation of the dairy sector to produce a critical mass that will enable significant Irish-based and Irish-owned companies to undertake the necessary marketing research which the internal market requires?
What the Deputy wants is academic at this stage because we are talking about two co-operatives and approval of 75 per cent of the membership of each co-operative is required. That has not yet been sought — I understand it will be sought later this month in the case of Waterford and Avonmore. If 75 per cent of members in each co-operative so approve, I will take into account the interests of consumers, suppliers — in this case the farmers — the need for rationalisation to ensure Irish companies can compete and the impact on employment. All those matters will form part of my consideration.
I congratulate the Tánaiste on being appointed Minister for Enterprise, Trade and Employment. I appreciate the position is not yet crystallised because a final decision has to be made by the shareholders, but I would ask the Minister to ensure the Competition Authority, when coming to its conclusion, will not confine itself to the impact such a merger would have in the context of the small domestic market of 3.6 million citizens but will have regard to the reality of the marketplace in which this company will have to function, the European internal market of 373 million citizens?
I did not confirm I would refer the matter to the Competition Authority. Given that the permission of the members must be sought, I must be careful because anything I say could influence the outcome for both co-operatives. If I am required to make a decision I will take on board the Deputy's comments and other matters. That is the way these issues must be dealt with.
