Dáil Éireann debate -
Tuesday, 21 Apr 1998

Vol. 489 No. 6

Written Answers. - Retail Sector Developments.

John Perry

Question:

153 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the purchase by Tesco of an 11 acre site for the development of an 80,000 sq. ft. superstore in Quarryvale, West Dublin; if the acquisition constitutes a merger or take-over under the provisions of the Mergers, Take-overs and Monopolies (Control) Act, 1978; if so, if this has been notified to her Department under the terms of this Act; the outcome of her consideration of the acquisition; and if she will make a statement on the matter. [8798/98]

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

The proposal outlined by the Deputy has not, as yet, been notified to me under the Mergers and Takeovers (Control) Acts, 1978 to 1996.

Should any such notification be made to me under the Mergers Acts in the future, I will then consider the matter in accordance with the provisions of those Acts. In this regard I would draw the Deputy's attention to section 15(1) of the Competition Act, 1991 which amended the definition of "service" in relation to the 1978 Mergers and Takeovers Act to the effect that the Act shall not include the question of owning and transfer of land where this activity is the sole activity of the enterprise in which control is being sought.

John Perry

Question:

154 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has received a copy of the benchmarking report prepared by the ESRI on the use by Tesco of products supplied and distributed by Irish based suppliers and distributors since the acquisition by Tesco of the Quinnsworth and Crazy Prices chain in March 1997; if she will outline the content of the report; when the report will be published; and if she will make a statement on the matter. [8799/98]

John Perry

Question:

156 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment the discussions or meetings, if any, she has had since January 1998 with representatives of UK food retailers; the nature and purpose of these discussions; the identity of the retailers involved; and if she will make a statement on the matter. [8801/98]

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

I propose to take Questions Nos. 154 and 156 together.

I have received a copy of the ESRI Benchmarking Study, which was jointly commissioned by An Bord Bia and Forbairt and funded by Tesco. The study establishes a benchmark for the size and structure of the supplier base to the Tesco Group for the 12 months ending February, 1997. Because the study contains commercially sensitive information I do not envisage that it will be published.

I personally met representatives of the Tesco Group on 3rd April 1998. The meeting involved:—

(a) direct discussions with representatives of Tesco concerning their development plans for their stores in Ireland and their plans for increasing the amount of Irish sourced products for their stores; and

(b) a meeting jointly with Tesco and the Food, Drink and Tobacco Federation which facilitated an exchange of views between the parties.

It was agreed that the discussions with Tesco and the Food, Drink and Tobacco Federation would be held in a confidential basis and that there would be further direct dialogue between them on matters of joint concern.

I can say, however, that I expect that, as a result of my discussions with Tesco in the context of the benchmarking study, there will be an increase in the amount of Irish products sourced by the company.

John Perry

Question:

155 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures, if any, which her Department has taken, or proposes to take, to support and encourage the growth and development of the indigenous food retailing network, in view of increased penetration of the Irish market by multinational food retailing companies; and if she will make a statement on the matter. [8800/98]

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

The indigenous food retailing sector is an important one and I am anxious that it be supported to the greatest extent possible.

Training is of vital importance to the retail sector. FÁS provides a range of supports to encourage the growth and development of the sector through, for example, support for management training, training programmes in new technology and communication, and training programmes in service quality. In addition, the board of FÁS, in May 1996, established a retail training advisory committee, comprised of the social partners, to advise the board in relation to the development of a training and manpower strategy for the sector. The committee is in the final stages of preparing its report which is expected to be submitted to the board of FÁS before July 1998.

A further area of importance, which is being addressed, is the effect of changes in the retail environment on the retail supply sector. Forbairt has established a supplier development programme which it has commenced to pilot. This programme will determine, at an individual company level, the appropriate changes required to assist the sub-supply base to respond to the challenges arising from the structural change under way in the market and to take advantage of the new opportunities arising.

The major responsibility for the growth and development of the retail sector rests with the industry itself and its representative associations. My Department is committed to ensuring that there are fair and competitive practices in the retail market, in the interests of both retailers and consumers. In addition, the very favourable macro-economic environment, with low inflation and reducing tax rates, will continue to benefit the sector through increases in disposable incomes and a reduction in the tax burden on enterprise.