Dáil Éireann debate -
Wednesday, 21 Apr 1999

Vol. 503 No. 4

Written Answers. - Company Operations.

John Perry

Question:

84 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on whether operations such as a company (details supplied) must be encouraged to contribute to the Irish economy; if her attention had been drawn to the fact that this company has ceased to do business with many Irish suppliers in spite of the fact they had been led to believe that the business was secure; the commitments, if any, she sought from the company in the way in which they were sought from another company (details supplied) on its entry to Ireland; if her attention has further been drawn to the fact that this will have very serious consequences if the company continues to source all products from the United Kingdom in spite of the fact that these products can be sourced at competitive prices in Ireland; the plans, if any, she has to seek these commitments from the company; and if she will make a statement on the matter. [10402/99]

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

The European Single Market gives the right to any firm within the European Union 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 successfully, both in terms of establishing businesses in other member states and in supplying the single market. Once the relevant provisions of competition law and Single Market rules are adhered to, it is open to all companies to source their products anywhere within the EU. I am not, therefore, in a position to seek commitments from any company in relation to the sourcing of products from Irish companies. To do so would be contrary to the principles of free trade and would be in breach of our Single Market obligations. I should stress that the commitments of Tesco regarding its purchases from Irish companies were given on a voluntary basis.

The company referred to in the question has met Enterprise Ireland on a number of occasions with a view to identifying the opportunities to source products from Irish companies. I also had a meeting with the company in November last at which it agreed to work closely with Enterprise Ireland to ensure that Irish companies would be given every opportunity to compete for business. I am aware of complaints regarding the sourcing of products by the company. My Department has been in contact with the company and a meeting has been arranged to discuss the matter against the background outlined above.