NUMBER of Quinnsworth suppliers have expressed fears that they will lose a substantial amount of an estimated £20 million a year in contracts because of an apparent change in policy by Tesco.

The British retailing giant bought Quinnsworth/Crazy Prices chain in April for £630 million. At the time it gave certain pledges when food suppliers expressed fears that far more goods would be sourced from Britain.

However, several contractors who supply a range of shop fittings including shelving, electrics, and other items - say they have heard little or nothing concerning store maintenance contracts since the takeover. Others say their new contracts are far less valuable.

A statement from the British multiple said it was reviewing all contractors and suppliers to see where improvements could be made.

Some suppliers say Tesco has indicated that particular items will be sourced from Britain. Others say they will be asked to instal British sourced fillings, many of which had previously been sourced in Ireland.

Last night, Irish Small and Medium Enterprises Association chief executive Mr Frank Mulcahy said companies which had contacted his organisation in the past two weeks said they stood to lose £15-£20 million this year.

"If the contracts that have now been put on hold are indicative of a shift towards placing the total maintenance business in Britain - and the evidence suggests that this is the case - it would have a very serious impact on the current Irish supply companies," he said.

Mr Mulcahy said this also raised questions over Tesco's long term commitments to its Irish food suppliers.

One firm told The Irish Times it had been asked to do some site work on a particular store for Tesco, but that the supplies would come in from Britain. The firm normally sources half its materials from overseas and half from Ireland.

The company, which like others asked not to be named, said the contract was only worth about 10 per cent of what it would have been worth if it had supplied fittings under former conditions.

"We don't go out of business because of it, but it will put the squeeze on some people," he said, explaining that, in turn, some of its work was contracted out.

Another shop fitting supplier said he had heard nothing since the Tesco takeover. "We don't know where we stand," he said, adding that Quinnsworth had accounted for about 60 per cent of his firm's business.

However, he acknowledged that one reason for the lack of communication with Tesco could be that the multiple is still trying to find its way since the takeover.

Another supplier said the Quinnsworth and Tesco specifications for certain fillings were completely different and an order he had been given had been "stalled".

Last night, the supermarket chain issued the following statement: "Tesco/Quinnsworth is in the process of reviewing, as a matter of course, all contractors and services throughout the business to determine areas of improvement and where value added can be brought to the business to the benefit of customers.

"It is the intention to continue the policy of Quinnsworth to employ local contractors and services wherever possible, subject to meeting specification and being competitive on price and delivery."