Dáil Éireann debate -
Tuesday, 30 Sep 1997

Vol. 480 No. 6

Written Answers - Guinness Take-Over Proposals.

Thomas P. Broughan

Question:

104 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will instruct the Competition Authority to conduct an inquiry under section 11 or section 14 of the Competition Act, 1991 into the Guinness take-over of United Beverages. [14426/97]

Nora Owen

Question:

110 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason a major merger plan involving Guinness was not referred to the Competition Authority; and if she will make a statement on the matter. [14876/97]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney):

I propose to take Questions Nos. 104 and 110 together.

On 4 September 1997, Guinness Ireland Group, following discussions with me and my officials, notified their proposed take-over of United Beverages Holdings to the Competiton Authority seeking clearance of the proposal under the Companies Acts.

I understand that the notification is being considered by the authority and I have requested them to treat this matter as a priority.

I am therefore satisfied that the proposal will be investigated thoroughly by the independent authority and, accordingly, it is not necessary for me to invoke any powers available to me in this regard such as those provided for in sections 11 and 14 of the Competition Act, 1991.

The discussions which culminated in Guinness Ireland Group notifying the proposal to the authority were initiated following the withdrawal by me, on 15 August 1997, of a referral of the proposal to the Competition Authority for investigation under section 7 of the Mergers and Takeovers (Control) Acts. I made that referral on 8 August but I was obliged to withdraw it on being advised by the Attorney General that it was out of time, the deadline under the legislation having expired on 3 August. That deadline was allowed to pass as it was understood, incorrectly as it transpired, that a request for further information from the parties which was made on 31 July would have the effect of extending the deadline. However, this was queried by the Competition Authority and the Attorney General confirmed that the deadline of 3 August was unaffected by the request.

To prevent any recurrence of errors of this type, I have issued strict instructions, based on the legal advice received in this case, concerning rigid adherence to the time scales laid down in the Mergers Acts.