Ned O'Keeffe (Cork East, Fianna Fail)

It is worth recalling that the global turnover of Tesco is twice the entire output of the Irish agrifood sector. This cannot be doubted and it indicates Tesco's power and the control it has over suppliers, consumers and competitors. We all know the history of Tesco. It was established in the 1930s by a London barrow boy, Jack Cohen, and has developed into what it is today.

I urge the Minister to give open-minded consideration to the concerns that have been expressed by many of the groups that lobbied us in regard to this legislation. In particular, I ask the Minister to address the specific suggestion that the Competition Act 2002 does not provide adequate protection against predatory pricing and ask him to be inventive in seeking to bring forward solutions to address this situation.

Reference was made to Statoil. We all believe in profit. If one does not have money, one is in trouble. Today's Irish Independent contains an article headed: "Statoil to exit Irish petrol market in €250m sell-off." Why is this the case? The article states:

The after-tax loss for the financial year amounted to €3.44m. This loss meant profits carried forward at the end of the year dropped from €28m in 2003 to €21.8m in 2004. Statoil's decision to exit Ireland is seen as a reaction to competition in a market which has become intensely competitive in the past number of years. Tesco's entry into the retail petrol market has put particular pressure on the profits of the major oil companies.

Statoil is a Norwegian company, more than 50% owned by the Norwegian Government. If the article is correct, Ireland will be in trouble. A further issue arises with regard to Wal-Mart, which we are told is one of the most competitive organisations of all. It is also the subject of an article in today's Irish Independent, which is headed: "Wal-Mart chief faces 28 years in prison for tax fraud." I will say no more on that matter.

The Bill will destroy rural villages and towns. We must address the issues of predatory pricing, hello money and abusive credit terms. When this legislation is passed, the major retailers will sing all the way to the bank because they will take over the whole business and make huge profits, and the stock market will boom — I have an interest in the stock market, but I like to be fair about it. All a retailer would have to do in any town is to single out the shop that is competing with it, change its prices to make them more attractive, and the other shop would be ruined and out of business in six months. After two years, the retailer could raise its prices because it would have a monopoly.

Tesco is no angel — everyone knows that. We have seen what happened in the UK retail market with regard to Somerfield, Sainsbury's, Morrisons and Asda, which is owned by Wal-Mart. The Bill is not dealing with a simple task. The consumer strategy group which is in place has a right-wing approach which does not fit with the Irish way of life. We are trying to destroy the Irish retail sector. When we make the rich richer and the poor poorer, and get rid of the small retailers, we will have done a great job. Small cottage industry in rural Ireland — I say this to Deputy McHugh — which is run by those whom we cherish and admire for their innovation and lovely products, will be gone because the simple production centres will be targeted by the multiples, which want to get rid of them.

I am a close friend of the Minister, Deputy Martin, for whom I have great admiration and for whom bigger things may be in store. He must consider the legislation and not be advised and assisted by those who have advised him to date. He has been abused in this debate by my colleagues in the Labour Party with regard to the way he ran the health services. He ran the health services with distinction and credit and left a substantial health structure in place that we can be proud of into the next decade and beyond. His health systems, which did not receive funding at Cabinet level, are now being put in place by some of his colleagues. I feel annoyed about this issue. I wish the Minister well.

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