TESCO moved last night to reassure Irish suppliers to Quinnsworth that the takeover was not a threat to their business. The Small Firms Association claimed the deal placed at risk thousands of jobs among companies which supplied more than £750 million annually to the Quinnsworth/Crazy Prices group.
The Minister for Enterprise and Employment, Mr Bruton, said he was seeking an early meeting with Tesco's senior management with a view to maintaining and increasing employment among Irish companies.
Fianna Fail's deputy leader and spokeswoman on enterprise and employment, Ms Mary O'Rourke, said Mr Bruton should not "just sit on his hands" but should seek to extract a commitment from Tesco in relation to Irish jobs.
The leader of the Progressive Democrats, Ms Mary Harney, said the Tesco/Quinnsworth deal would be bad for Irish consumers and bad for Irish suppliers. "We should be aware of the threat posed to Irish employment by this British retail invasion, and particularly the threat to jobs in small and medium enterprises," Ms Harney added.
The chairman of the IFA Vegetable Committee, Mr P J Jones, expressed concern that Tesco would supply its new Irish stores through its British based central distribution network.
A Labour Party TD for north Dublin, Mr Sean Ryan, said: "If Tesco decides to import horticultural produce directly from the UK, this would have devastating implications for north Co Dublin growers and the region's economy.
The chief executive of Tesco, Mr Terry Leahy, told The Irish Times there was no question of UK suppliers being offered preferential treatment.
Instead of being concerned about a loss of business, Mr Leahy said Irish suppliers should be looking at the opportunities presented by dealing with a multinational company with sales in excess of £15 billion.
"The business is an Irish business and will continue to be run by [chairman] Don Tidey and [chief executive] Maurice Pratt," Mr Leahy added. "We will not be rushing in to make any changes." Tesco would be sitting down with its Irish suppliers to see how they might sell more rather than less to the group, according to Mr Leahy.
Tesco bought £500 million worth of goods from Irish suppliers last year, Mr Leahy said.
The Irish Small and Medium Enterprises Association claimed there was "every likelihood" that Tesco would seek to substitute British products for Irish manufactures. ISME director Mr Frank Mulcahy said Quinnsworth had a policy of sourcing locally but that Tesco's history was "very pro British" and it had a secure supply line with UK manufacturers which had been developed over years.
The Food Drink and Tobacco Federation of IBEC also expressed concern about the Quinnsworth takeover.