THE proposed £630 million takeover of the Quinnsworth chain by British supermarket giant Tesco will be raised in the Dail today.
Fianna Fail Enterprise and Employment spokeswoman, Ms Mary O'Rourke, has tabled a Priority Question on the issue, asking her Government counterpart, Mr Richard Bruton, for his reasons for "refusing to take action" on the takeover.
The minister has rejected Ms O'Rourke's criticisms, saying he has handled the matter in a "decisive and sure-footed" way.
But Ms O'Rourke said: "The minister has completely rolled over in relation to the Tesco deal. It is outrageous that he refuses to take a stand on the matter and his failure to act is against the public interest."
She accused Mr Bruton of refusing the "exercise the muscle" he has and said she will be demanding a full explanation from him today.
Department of Enterprise and Employment officials were in Brussels recently with their EU counterparts examining European merger legislation to see whether it allowed for Irish officials to examine the takeover. The proposed deal was notified to the EU by Tesco and a decision is due by May 5th.
"The Tesco deal has major implications for Irish food distributors and agents," she said in a statement. "With Tesco's high usage of own brands this will have serious ramifications for Irish suppliers."
Ms O'Rourke said that Mr Bruton continues to ignore the implications, despite the concern of representative groups and trade unions. She said the minister should refer the takeover under EU legislation unless immediate written commitments were obtained from Tesco on the maintenance of the Irish staff and its supplier base.
Tesco chief executive, Mr Terry Leahy said earlier this month, that the company had agreed to abide by the fair trade provisions, which, among other things, ban below-cost selling.
Ms O'Rourke also said it was imperative to achieve commitments from Tesco on the allocation of supermarket space for Irish made products for the next five years.
Mr Bruton said last night that as Tesco had notified the deal to the EU, a reference by him does not arise. "The size of the transact ion means that it should be considered under the EU Merger Regulation," he said.
He said that a series of commitments on issues such as pay and purchasing had been given by Tesco representatives in writing at a meeting last month, including one to grow the business through continuing investment. It is also understood that the purchasing, function for the Irish stores will continue to be based in Dublin.
