THE “TESCOISATION” of the Irish food sector is having a serious impact on local suppliers, an Oireachtas committee has heard.

Labour TD Ruairí Quinn referred to the British retailer’s practice of sourcing products directly from the UK during a meeting of the committee on the implementation of the Good Friday Agreement.

“The impact of the ‘Tescoisation’ of the Irish food sector is far more serious than we realise,” he said.

Mr Quinn claimed Irish products were now being placed above or below customers’ eyelines in supermarkets.

Asked later by The Irish Times to comment on Mr Quinn’s comments at the committee, a Tesco spokesman said it bought almost €2 billion of food and drink products in Ireland. Of this, €655 million was exported to Tesco stores outside the country.

He said Tesco was committed to supporting Irish producers in commencing production of produce that was previously imported and facilitating exports. Tesco was proud of the contribution it made to the Irish food industry, he said.

Last month, Tesco dropped prices in stores near the Border in an attempt to discourage shoppers from going to the North.

Meanwhile, at the committee, Fine Gael deputy Joe McHugh said cross-Border trade was not a new phenomenon. “However the problem here at the moment is that it’s one-way traffic,” he said.

Mr McHugh, who is a TD for Donegal North East, said while “protectionism” was not the answer, people needed steady employment on both sides of the Border.

“This nonsense of thinking it’s going to come back, swings and roundabouts. This nonsense that you can build sustainable business along the border on the basis of swings and roundabouts has to be removed from our agenda,” he said.

The committee members were responding to a presentation from Reg McCabe of employers’ group Ibec. He briefed them on the work of the joint business council of Ibec and the Confederation of British Industry Northern Ireland.