Vol. 498 No. 2
128 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will review the report on the impact of the arrival of Tesco on Irish suppliers and distributors prepared for the Joint Committee on Enterprise and Small Business; and the steps, if any, she will be taking to address the concerns raised by suppliers in that report. [26950/98]
A copy of Senator Henry's report has been made available to me by the Joint Committee on Enterprise and Small Business. The report outlines the challenges faced by the retail and distribution sectors. In common with business generally, these sectors must adapt to market forces and the report acknowledges that the changes taking place, particularly in relation to distribution, were happening irrespective of the arrival of the major UK multiples in Ireland.
Steps have already been taken to assist Irish companies to respond to the challenges and to exploit new opportunities through the supplier development programme administered by Enterprise Ireland. In addition, the commitments given by Tesco regarding the purchase of Irish products continue to be monitored by my Department and Enterprise Ireland.
129 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to concerns expressed by RGDATA and IBEC in relation to the inadequacy of the Competition Acts, 1991 and 1996, to prevent anti-competitive arrangements or abuses by the multiples in the retail grocery trade; and if she will make a statement on the matter. [26951/98]
I am aware of the concerns expressed by RGDATA and IBEC in relation to the retail grocery trade.
The Restrictive Practices (Groceries) Order, 1987 prevents below cost selling in the retail grocery trade and it is enforced by the Director of Consumer Affairs. The competition and mergers review group established by my predecessor is reviewing competition and mergers legislation. Both RGDATA and IBEC have made submissions to the group. The review of the groceries order, particularly the below cost selling aspects of the order, is included as part of the terms of reference of the group.
I look forward to receiving the report of the competition and mergers review group and I will consider the recommendations made therein.
130 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the serious concerns expressed in the United Kingdom recently in relation to the power of the United Kingdom grocery multiples in their dealings with suppliers; and the steps, if any, she is taking to ensure that Irish suppliers to the United Kingdom multiples are not placed at risk in their trading arrangements. [26952/98]
I am aware that the Office of Fair Trade recently produced a report which calls for a full inquiry into the profitability of the large grocery multiples in the United Kingdom. From inquiries I have made, I understand that Irish suppliers are not experiencing difficulties in supplying UK grocery multiples. However, the relevant agencies, An Bord Bia and Enterprise Ireland, are keeping the matter under review. As the Deputy is aware, any action which might be open to me in this situation would have to take account of EU competition policy in the context of the European single market.
131 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has received the ESRI benchmarking study on existing supply patterns to stores owned by Tesco; if so, the results of that study; and if she will make a statement on the matter. [26953/98]
The ESRI benchmarking study was commissioned by An Bord Bia and Enterprise Ireland in association with Tesco to identify the level of Irish sourced products by the former Quinnsworth/Crazy Prices chain. Tesco, who have primary ownership of the study, have indicated that they do not wish to have the results published as this would entail disclosing commercially sensitive information. I wish to assure Deputy Owen, however, that the commitments given by Tesco to purchase Irish products are being monitored by my Department and Enterprise Ireland.
