Harney denies claims of favouritism on size of stores

The Tanaiste, Ms Harney, has dismissed Opposition claims that favouritism was shown to particular supermarket companies in relation to a cap on the size of superstores two years ago.

Speaking in Letterfrack, Co Galway, where she was attending a book launch last night, she said capping supermarket size was "no secret" at the time and was being widely discussed within the trade in 1998. There was no question of leaking sensitive information as there was no Cabinet decision.

"The Minister for the Environment, Noel Dempsey, brought an aide-memoire to Cabinet signalling what he proposed to do and at that stage it was a set of guidelines," she told The Irish Times.

"The reason that the matter came before the Taoiseach and myself was because of the competition elements in restricting size. The dogs in the street knew that capping was on the agenda."

The issue had arisen in March of that year, to her knowledge, when RGDATA initiated a campaign to restrict the size of retail outlets because of the fear of hypermarkets. She had favoured capping and it had arisen in the Dail and she also gave an interview on the subject and other issues to Retail magazine.

She said two officials with her Department had joined her at a dinner with Tesco executives and capping was one of the items on an agenda submitted by the retail chain to her 10 days before. Tesco had opposed capping and she had recalled arguing in favour of it at the dinner.

"The main issue discussed at the Tesco dinner, from my point of view, was our desire to see Tesco increasing its use of Irish suppliers for produce, which it has endeavoured to do and which was the subject of further meetings."

She said it was a coincidence that Ms Sarah Morris, a former PD press officer, was subsequently associated with Tesco.

She said the decision made was far more favourable to the independent retailers than to anyone else and it did not suit Tesco. In her view, the matter had been blown out of proportion.

Earlier, Ms Harney described the drugs menace as the real challenge for Irish society. It was the "famine" of this millennium in terms of its social devastation.

She called for a community spirit which would allow people equal opportunity to health and education, similar to the spirit shown in the Quaker village of Letterfrack 150 years ago.

She was speaking at the launch of a biography of a Quaker couple from the north of England who came to Letterfrack to help Famine victims. James and Mary Ellis: Background and Quaker Famine Relief in Letterfrack is written by Joan Johnson.

Barry Roche adds: The Minister for Health, Mr Martin, last night denied he had any role in the leaking of Cabinet information which prompted a shopping centre developer, Mr Owen O'Callaghan, to write to the Taoiseach seeking a change in the proposed capping of supermarket developments.

"I want to make it very clear on the record that since my appointment as a Government Minister back in 1997 I have never leaked any information to any individual or any company in relation to any matter that came before the Cabinet."

Mr Martin was responding to a call from Cork North West Fine Gael deputy Mr Michael Creed to make a statement on his role, if any, on the leaking of Cabinet information.

Mr Creed, his party's spokesperson on consumer affairs, said: "There is an established link between Minister Martin and one of the main developers of shopping centres in the country and given that commercially sensitive material was leaked from Cabinet, I think it's appropriate for the Minister to make a statement clarifying whether or not he had any role in the matter."