I thank the Ceann Comhairle for allowing me to raise this matter and the Minister for coming in to reply. This matter relates to the announced take-over of Quinnsworth-Crazy Prices by Tesco. Like I did, the Minister met representatives of Tesco. I received correspondence from Tesco but I am very disappointed the Minister has not received written commitments from the company on a range of issues. The letter I received from the company today contained no written commitments in regard to the main issues of concern about the take-over. I have written today to the EU Competition Commissioner, Karel Van Miert, to express my party's concern about the deal and the absence of written commitments. I call on the Minister to use his powers to refer the deal to the Commission under the EU mergers regulations. Up to now we have not heard if the Minister intends to do this and I ask him to say if this is his intention. Tesco has engaged in a massive public relations exercise. By making a joint statement with Tesco, the Minister tied his hands in the matter and nobbled himself in terms of any future intervention he may make on the matter in Europe. I ask him to refer the take-over to the Commission under Article 9 of the EU mergers regulations.
Tesco notified the EU Competition Commission of the take-over yesterday and a case handler has been appointed to examine the matter. The EU appears to be indicating that it has no problem with the take-over as it has not received any objections from the Minister or the Department. If the Minister refers the deal to the Commission under the mergers regulations this will stand as an objection and he will then be in a strong position to extract written commitments from Tesco. When these commitments are secured the objection can be withdrawn and the take-over can proceed.
When I met the representatives of Tesco I received a commitment in regard to the staff of Quinnsworth. While I am concerned about this matter it is not my main worry as the company will require good staff, which Quinnsworth has, if it wants to give a good service. My main concern relates to Quinnsworth's Irish suppliers who have been very loyal to Quinnsworth, which in turn has been very loyal to them. In the UK Tesco carries 50 per cent own brand products, while Quinnsworth-Crazy Prices carries 15 per cent own brand products. I could not get a commitment from its representatives that Tesco would continue to buy the same quantity of products from Irish suppliers as Quinnsworth currently buys.
I made the relevant point that our economy is buoyant and growing and there is high consumer spending. One does not have to be Cassandra to know that during the next two years there will be changes and a decline in the level of growth. It is interesting to note that today's edition of the Financial Times states that if our growth rate falls by 1 per cent next year we will not be in a position to meet the Maastricht guidelines. If this happens Tesco will want to cut corners. Yet we will not have extracted any commitment from it in regard to this issue.
The company must also give a commitment to locate its buying offices in Ireland, to maintain the Quinnsworth distribution system for at least three years and to comply with the fair trade provisions. When a new store sets up in a foreign country it cuts prices. While this may seem to be of benefit to consumers it is of only short-term duration. I am concerned that the entry of Tesco to the Irish market may lead to predatory pricing. It is, therefore, vital that the fair trade provisions of the groceries order be retained. We all remember the collapse of H. Williams and the consequent loss of a significant number of jobs. Given that Tesco needs the Minister's support to secure EU approval for the deal, if he lodges an objection he will be in a strong position to seek such written assurances. I ask the Minister to use his clout to obtain written assurances from Tesco that it will continue to buy from Irish suppliers in at least the same quantities as Quinnsworth.
