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Dáil Éireann díospóireacht -
Tuesday, 3 Mar 1998

Vol. 488 No. 1

Adjournment Debate. - Schools Marketing Sponsorship Initiatives.

I commend the Minister for attending the House because this is a difficult and topical issue. Irish consumers are, by and large, well protected from unscrupulous trading and commercial practices. The Consumer Information Act, 1978, and the Sale of Goods and Supply of Services Act, 1980, have given them considerable protection and provide for redress where a consumer is dissatisfied with a product or service. The Director of Consumer Affairs and the Consumers' Association of Ireland Limited play an invaluable role in representing and advocating the interests of consumers.

It is clear that the interests of consumers need protecting. Daily we are all faced with competing messages from companies urging us to buy their goods and services and we exercise our freely given right to prefer one supplier or service provider to another. It is important in making these choices that we, as consumers, are not placed under unfair or subtle pressures to influence our decisions. The regime operated by the Advertising Standards Authority plays an important role in ensuring that we are not misled by inaccurate advertising.

In recent months we have seen the re-emergence of marketing promotion involving schools where companies promise to provide free sponsorship of much needed equipment in return for vouchers obtained from the company's outlets. I refer specifically to the Tesco computers for schools promotion. This scheme involves parents receiving a voucher for every £10 spent at Tesco owned stores. The schools are urged to collect the vouchers and when sufficient vouchers are gathered, the schools exchange them for equipment.

The promotion was launched in February 1998. Every school received a pack directly from Tesco which included pre-printed circulars from the school to parents. These were printed on paper carrying the Tesco logo and slogan. Many schools sent these requests to parents, seeking the vouchers. To obtain a free computer and software, parents of children in the school must spend up to £170,000 on grocery products in Tesco owned stores.

I do not have any difficulty with commercial enterprises, large or small, engaging schools in straightforward sponsorship or promotional activities. It is commendable that so many companies become involved with schools, through sponsoring competitions, producing educational packs on matters of relevance to the curriculum or placement programmes. However, there is a distinction to be drawn between bona fide sponsorship initiatives and initiatives with strings attached. It is not right that children should put pressure on parents to collect vouchers or tokens from a particular retailer or any other business. In this case, it involves putting pressure on the children of the 75 per cent of parents who do not currently shop in Tesco owned stores. It also places unfair pressure on teachers and it can have divisive effects in some communities given the school's existing relationship with the local retailers.

The Department of Education and Science introduced at least two circulars dealing with the issue of commercial exploitation of schools. Circular 23/84 requested school management authorities to consider carefully the implications of allowing any situation to develop which would result in parents being put under pressure that would be prejudicial to the interests of the pupils. Circular 7/87 again cautioned school authorities against allowing any situation to develop which would result in parents being put under pressure to purchase a particular product.

Promotions in schools which directly link sponsorship with purchases are wrong. The existing guidelines are inadequate and a new guideline from the Minister is needed. No position should be allowed to develop where a commercial undertaking's sponsorship of a school is intrinsically linked with the parents of children at that school making purchases from the undertaking. It places unfair pressure on parents, teachers and pupils. We should work towards and encourage genuine interaction between schools and business. However, it should be a relationship with no strings attached. If businesses wish to bestow largesse on schools, they should not extract a price for doing so. Schools should not be used by any commercial enterprise, local, national or international, as a marketing device to acquire customers. They are a wholly inappropriate forum for commercial matters.

By introducing a new circular on this issue, the Minister will ensure that children in schools will never again be subjected to unfair commercial pressures from businesses. He will also ensure that parents will not be subjected to similar resultant pressure from their children. Ultimately, he will ensure that consumers will make their purchasing decisions without being subjected to additional unfair and subtle pressure from commercial enterprises.

This venture is less about getting computers into schools and more about getting customers into Tesco owned shops. It is a case of a commercial company using children to place unfair pressure on their parents. Children are coming home in tears because their friends are supplying vouchers and they cannot do so if their parents do not shop in TesCo. The Minister should not have allowed himself and his Department to promote a Tesco expansion plan, particularly in view of its ban on Irish beef in Britain. Two Ministers travelled to Britain this week to beg Tesco to put Irish beef back on the shelves. The Minister's intentions were admirable, but there is something wrong and I ask him to redress the position.

I thank Deputy Stanton for raising this issue and giving me an opportunity to clarify the existing policy of the Department of Education and Science on such matters. Implicit in the Deputy's matter is the exploitation of schools, their pupils and parents by companies in pursuit of opportunities to expand market share. I assure the Deputy that the use of educationally linked promotional activity with such solely commercial motives cannot be condoned under any circumstances.

In the commercial world, private companies are free to promote their businesses in accordance with accepted marketing practices, such as the provision of vouchers which can be redeemed for a variety of purposes. There are also accepted marketing standards, such as compliance with advertising regulations which guide, inform and control the relationship between the vendor and potential customers. I recognise the sensitivities attached to the issue of promotion initiatives linking schools, pupils and parents to commercial activity. However, it would be inappropriate to prohibit marketing or sponsorship initiatives of the type highlighted by the Deputy provided such schemes do not place undue pressure on parents in terms of requiring additional expenditure, that children are protected from engagement in inappropriate promotional activity and that the schemes are linked to desirable projects serving national educational initiatives.

The Deputy is aware that official circulars were issued by the Department in 1984, 1987 and 1991 to the management authorities and principals of primary and second level schools concerning the promotion and marketing of commercial products through schools. The circulars noted the Minister's concern at the pressure on schools from time to time to become involved in the marketing and promotion of commercial products. I have no difficulty reiterating these sentiments to schools in light of the Deputy's comments. I will be glad to take up any matters of which he is aware in the context of the information he revealed to the House.

The Minister launched it.

The Deputy said children were crying. I hope that is hyperbole because I have not heard that before.

The circulars impress on school authorities the need to consider carefully the implications of allowing situations to develop which would result in parents being put under undue pressure to purchase particular commercial products. The co-operation of school authorities is requested in taking steps to eliminate any undesirable practices in this regard and in formulating agreed school policies in relation to commercial promotions. I am sure the Deputy will agree that due vigilance already exists in relation to the matter he raised.

The Deputy's concerns may be related to a recent initiative whereby computers would be provided to schools on the basis of a voucher system. He will undoubtedly be aware of the major policy decision taken by the Government in relation to a fund of over £250 million for scientific and technological education which is now established in statute.

No strings attached.

A key area to be supported by the fund is the IT 2000 initiative in primary and second level schools which the Taoiseach and I launched in November 1997. In achieving the objectives of this ground breaking initiative, which include the provision of 60,000 computers in primary and second level schools by 2001 and connection to the Internet for every school allied to the creation of a special school Internet facility, significant emphasis is placed on partnership as a key element of its success. The State will contribute £40 million between now and 2001. The Government is also seeking partnerships with bodies that can add value to this investment.

That will not cost £170,000 in certain shops.

We are in discussion with a range of technology companies, such as Telecom Éireann. Some of its competitors may not appreciate its actions, but it has contributed £10 million to the project.

This involves £170,000.

I will not hand that back. I want Telecom Éireann's £10 million to add to the initiative.

No strings attached.

Such partnerships will have a number of different strands and strategies. They will envisage developments at national, regional and local levels and can be entered into voluntarily. One of the objectives of the partnership approach is the development of the equipment base in schools which will enable them to gain from the many other activities and opportunities associated with the IT 2000 initiative. The placing of undue prohibitions, as sought by the Deputy, on potential partners in this important work would be contrary to the spirit of this innovative collaboration between Government, public and private sector organisations and schools. It would also have the potential to deprive over 500,000 school-going children and young people of the benefits of this most significant, educationally sound and inclusive investment in schools under the IT 2000 initiative since the introduction of free post-primary education.

The Dáil adjourned at 9.10 p.m. until 10.30 a.m. on Wednesday, 4 March 1998.

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