Vol. 503 No. 3
112 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if Irish suppliers are being excluded from supplying goods or services to any of the multi-stores operating here; and if she will make a statement on the matter. [9668/99]
117 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the information or evidence, if any, she has received suggesting that companies which have been the subject of merger or take-over scrutiny are not complying with commitments given or are not giving Irish companies an equal opportunity to supply goods or services; and if she will make a statement on the matter. [9788/99]
118 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the complaints, if any, she has received from Irish suppliers of goods or services to overseas controlled chain stores with particular reference to equal rights to supply in accordance with EU law; and if she will make a statement on the matter. [9789/99]
140 Ms Clune asked the Tánaiste and Minister for Enterprise, Trade and Employment the arrangements, if any, made with United Kingdom companies (details supplied) trading here to ensure they source their products in Ireland. [9921/99]
141 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will publish the report carried out by ESRI dealing with Irish supplier base to Tesco Ireland; if her attention has been drawn to the fact that the publication is relevant to the whole grocery trade in general; and if she will make a statement on the matter. [9932/99]
I propose to take Questions Nos. 112, 117, 118, 140 and 141 together.
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 very successfully, both in terms of establishing businesses in other member states and in supplying the Single Market. Once the relevant provisions of EU 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 aware of the failure by any company to comply with commitments or obligations entered into under national mergers legislation.
Tesco, for its part, voluntarily gave commitments to increase the value of purchases from Irish companies. An independent study was carried out by the ESRI to establish a benchmark of the level of Irish products sourced by Tesco as of February 1997. On the basis of the study, Tesco gave a commitment to increase its purchases from Irish companies from £692 million to £997 million, an increase of 44 per cent over the five year period 1997 to 2002.
The latest ESRI study, which covers the period up to February 1998, shows that purchases from Irish companies grew from £692 million to £770 million, an increase of 12 per cent. These results are welcome and represent a step in the right direction. However, if the target of £997 million is to be achieved, much more needs to be done. I conveyed this message to Tesco management when I met them recently. Tesco, on their part, pointed out that during its first two years in the Irish market, much time and effort was spent on consolidating the business and they would expect substantial improvements over the next three years. My Department, in co-operation with Tesco, will continue to monitor the situation.
The ESRI studies cannot be made available as they contain information which is commercially sensitive. Further studies will be carried out by the ESRI on a yearly basis to measure progress made by Tesco in achieving its objective. It is intended that the report covering the period up to February 1999 will be available before the end of the year.
