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Dáil
‹ Ceisteanna—Questions. Oral Answers. - H. Williams Group Jobs.

Quinnsworth purchase and grocery competition

Summary

Cullen argued that approving Quinnsworth’s purchase of four stores without referral to the Restrictive Practices Commission worsened grocery-market concentration and supplier risks. Brennan said the extra turnover was less than half of one per cent and defended prioritising jobs and reopening stores before Christmas.

Regarding the sale of the four stores to Quinnsworth through the monopolies why did the Minister not refer them to the Restrictive Practices Commission? Would he agree that by not doing so he has compounded the problem in the grocery trade because of the imbalance created in that market, and has put at risk further the whole question of the suppliers in the market by increasing the control of the market by companies such as Quinnsworth and Dunnes who have nearly 50 per cent of the market between them?

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Can I add to that question?

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Seán Treacy An Ceann Comhairle Independent

I would like the Minister to reply to the questions posed by Deputy Cullen first.

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Every consideration was given to the point the Deputy made in coming to a decision not to refer it. H. Williams had 6 to 8 per cent of the grocery market in the country and the four stores taken over by Quinnsworth would have accounted for less than 1 per cent of the market.

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One per cent extra.

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The additional turnover in Quinnsworth is very small. It is less than half of 1 per cent. That was one of the factors taken into account.

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That is a short-sighted view. It is an appalling statement to make. Recently in Germany the largest supermarket chain which has 8 per cent of the market was not allowed to expand further because it was considered they were large enough to operate. The Minister has now increased by 1 per cent——

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Half of 1 per cent.

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I thought the Minister said 1 per cent. Dunnes have something like 23 or 24 per cent of the whole market——

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Seán Treacy An Ceann Comhairle Independent

This is leading to argument. I wanted to bring in Deputy Ivan Yates.

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Can I——

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Seán Treacy An Ceann Comhairle Independent

A question please, Deputy Cullen. I am anxious to facilitate the Deputy by way of eliciting information. We cannot debate the matter now.

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Will the Minister not agree that he has taken an extremely short-sighted view and has made the marketplace more vulnerable?

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Absolutely not. I do not think one should panic about half of 1 per cent of the grocery market. Secondly, there was the question of jobs to be considered which meant that we had to get those stores open and as many of them as possible back into operation before Christmas.

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It is short-sighted.

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Short-sighted perhaps to close down all the stores until after Christmas because we are afraid of a half per cent of the market? That does not make sense to me.

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