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Dáil Éireann debate -
Wednesday, 16 Dec 1998

Vol. 498 No. 5

Written Answers. - Retail Sector Developments.

Bernard J. Durkan

Question:

86 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself at the extent to which multinational chain stores source their products in this country; and if she will make a statement on the matter. [28118/98]

I am aware that the arrival of multinational chain stores in Ireland has stimulated changes in practices and procedures in the retail sector. I have been anxious to keep abreast of these developments and to ensure that Irish suppliers are positioned to benefit from the opportunities arising.

Indeed, certain multinational chain stores who have established outlets here have given commitments in relation to the sourcing of Irish products.

In addition, Enterprise Ireland launched its supplier development programme earlier this year to assist Irish companies to respond to these changes. To date, 27 companies have expressed an interest in the programme. Of these, four are now at the implementation phase where training and development of staff with specific improvement projects is being addressed. The remaining companies are being assessed as regards their suitability for strategic change.

Of course, the creation of the European single market gives the right to any EU multinational chain store to establish retail outlets in other member states and to source freely their supplies from within the European Union. This is a right which many Irish firms are exploiting very successfully, both in terms of establishing businesses in other EU States and in supplying the EU single market. Once the relevant provisions of EU competition law are respected and single market rules adhered to, it is not open to me to compel multinational chain stores to source their products in Ireland.

Nora Owen

Question:

87 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment when the ESRI study into the level of Irish-sourced products sold by the former Quinnsworth and Crazy Prices was completed and made available to Enterprise Ireland and her Department; and the assessment, if any, carried out based on this study in relation to the changes, if any, in Irish sourced products on the shelves of Tesco. [28005/98]

The ESRI study referred to was completed in February 1998 at which time a copy was made available to my Department. The report, which established a benchmark for the size and structure of the supplier base to the former Quinnsworth chain over the period March 1996 to February 1997, formed the basis for an indepth evaluation of Tesco's plans to purchase Irish products which was carried out at a meeting involving representatives of my Department, Enterprise Ireland, An Bord Bia and Tesco Ireland.

A second ESRI study, which will measure Tesco's purchases of Irish products in the year ended February 1998 is being finalised. As soon as these results are available discussions will be arranged with Tesco Ireland to review the situation.

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