THE Government should use EU law to extract promises from Tesco protecting Quinnsworth's existing suppliers and staff members, Fianna Fail said last night. The party's deputy lender and spokeswoman on enterprise and employment, Ms Mary O'Rourke, said the Government should act immediately or it would lose its opportunity.
Ms O'Ronrke said Fianna Fail would be writing to the EU Commissioner with responsibility for competition, Mr Karel van Miert, to express concern about the £630 million sterling takeover deal, and the absence of written commitments from Tesco. She called on the Minister for Enterprise and Employment, Mr Bruton, to do likewise.
"Up to now, the Minister has been dithering on the referral of the takeover," she said. "The Minister has been much too cosy with Tesco, going as far as issuing a joint statement with them.
"Unless he now refers the takeover under Article 9 of the EU Mergers Regulations, there is no hope of extracting commitments from Tesco in relation to how they do their business in Ireland," Ms O'Rourke told the Dail, according to a statement issued last night.
The EU appeared to be indicating that it had no problem with the takeover, she added, because it had not received any objections from the Irish Government.
"If the Minister refers the deal under the Mergers provisions, this will stand as an objection. The Minister would then be in a strong position to extract written commitments from Tesco. Once these were secured, the objection could be withdrawn and the takeover could then go ahead," Ms O'Rourke told deputies.
Tesco should put in writing its intention to keep on the staff of Quinnsworth and Crazy Prices and its supplier base, she added. The British company should also commit to locating its buying office in Ireland, maintaining Quinnsworth's distribution system for at least three years, and to complying with the Fair Trade Provisions, Ms O'Rourke said.
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