Dáil Éireann díospóireacht -
Tuesday, 3 Nov 1998

Vol. 495 No. 7

Written Answers. - Retail Sector Developments.

Michael D'Arcy

Ceist:

70 Mr. D'Arcy asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that Tesco is complying with all commitments given by it at the time of its approval by the EU Competition Authorities to operate in Ireland, particularly its commitments to be a stand alone operation in Ireland and to continue to source as many Irish products as possible; and if she will make a statement on the matter. [21731/98]

Andrew Boylan

Ceist:

84 Mr. Boylan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that the take-over by Boots of a number of HCR chemists shops has not led to removal of a number of Irish products from the shelves; and if she will make a statement on the effects the opening of further Boots chemists will have on the jobs and viability of existing chemist shops. [21733/98]

Bernard J. Durkan

Ceist:

88 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that firms and companies, which have been the subject of mergers and takeovers in the past number of years, are trading in accordance with the conditions set out in competition and monopolies legislation; if she has further satisfied herself that all these firms, both national and multi-national, continue to source their enterprise in Ireland in so far as is possible; if her attention has been drawn to any instances to cause her concern; and if she will make a statement on the matter. [21707/98]

Nora Owen

Ceist:

135 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that the take-over by Boots of a number of HCR chemists shops has not led to removal of a number of Irish products from the shelves; and if she will make a statement on the effects the opening of further Boots chemists will have on the jobs and viability of existing chemist shops all over Ireland. [21842/98]

Nora Owen

Ceist:

137 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself that Tesco is complying with all commitments given by it at the time of its approval by the EU competition authorities to operate in Ireland, particularly its commitment to a stand alone operation in Ireland and to continue to source as many Irish products as possible; and if she will make a statement on the matter. [21844/98]

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

I propose to take Questions Nos. 70, 84, 88, 135 and 137 together.

I am not aware of any contravention of competition or merger law by any party to a merger notified to me under the Mergers and Takeovers (Control) Acts, 1978 to 1996. Only mergers which exceed the relevant thresholds set out in the mergers legislation are required to be notified to me for clearance. Larger scale mergers or takeovers which exceed the thresholds specified in the EU merger regulation, and which have a community dimension as defined by the merger regulation, are notifiable to the EU Commission which has jurisdiction in those cases.

All of the commitments given to my predecessor by Tesco are being monitored closely by my Department and Enterprise Ireland. I am satisfied that the commitments relating to the establishment of a head office in Ireland and the sourcing of as many Irish products as possible are being honoured. I wish to assure the Deputies that Tesco Ireland continues to meet with Enterprise Ireland and Bord Bia to ensure that the Irish supply base is given every opportunity to achieve its potential.

Enterprise Ireland was recently informed that almost all of the Irish manufactured products which were listed by Hayes, Cunningham and Robinson (HRC) prior to the take over by Boots are still on the shelves of the former HCR shops. Those products which were removed were taken off because they did not fit the profile of the Boots range. Since arriving in the Irish market, Boots has made contact with Enterprise Ireland with a view to identifying the opportunities for sourcing Irish supplied products. In this regard, it is expected that a number of Irish manufactured products will be stocked in all Boots stores in the Republic of Ireland in the new year and not just in the former HCR shops. The takeover of HCR by Boots was not notifiable to me under the Mergers Acts.

Earlier this year, Enterprise Ireland launched its supplier development programme with a view to assisting Irish companies to respond to the changes which are taking place in the retail sector and to exploit new opportunities arising. To date, 26 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 the suitability for strategic change.