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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Grant Agreements with Multinational Companies.

EC purchasing preferences and Travenol

Summary

Flynn raised concerns that EC countries favouring domestic suppliers could disadvantage Irish-based multinationals. Bruton said he had raised the issue with the competition commissioner; on Travenol, he said lower French unit costs were critical and purchasing was probably not a factor in its move.

Would the Minister accept that some disquiet is being expressed about the purchasing mechanisms of some EC countries in that they are giving preferential treatment of purchases to companies located in their homelands, that he should take cognisance of this and bring it to the attention of the relevant authorities so that our multinationals marketing goods on the Continent are not materially affected by this development?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I had a meeting with the Commissioner on Competition Policy in the Community last year to express my concern that in some cases, in particular in the health care area, the prospect of State purchasing opportunities was being used by member states to influence companies to locate in their country rather than in another. That is contrary to the spirit of the Treaty of Rome and I underlined this very firmly at my meeting with the Commissioner. I intend to do everything I can with the present Commissioner on Competition Policy — a man who should understand Ireland's position — that something should be done about this. Of course, it is necessary to have solid evidence before we can take action. A lot of this is not in writing and therefore it is difficult to get solid evidence.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

As a matter of urgency would the Minister approach Commissioner Sutherland and ask him to investigate the charges that have been made about Travenol's purchasing in France, the reason for that company moving there and the effect that had on their decision to close their Irish factory?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

The Chair deprecates Deputies rising quickly and asking questions before they are called. This is taking control from the Chair.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

The unit costs in the French plant were lower than those in Castlebar and that was a critical factor. The purchasing matter would have been a subsidiary item.

Comment on this
Ray Burke Mr. R. Burke Fianna Fáil

But it would have been a factor?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

Probably not.

Comment on this