Willie Penrose (Longford-Westmeath, Labour)

I thank the Minister but that was a bureaucratic reply written by bureaucrats. On 5 May Tesco reopened 11 stores in the north east using international brands sourced from UK rather than Irish suppliers and UK plannograms were put in place. Tesco claimed 12,500 prices would be reduced across the 11 stores by an average of 22% but a document, which The Irish Times acquired through good investigative journalism and which was quoted by Philip Boucher-Hayes on RTE Radio 1 last Thursday evening as I drove home from the House, indicates the reduction in a basket of frequently purchased goods is much closer to 8% than 22%.

Is the Minister aware the same documentation indicated that Tesco made a profit of 9.3% in Ireland in 2008, which is projected to increase to 9.5% this year, as opposed to a profit of more than 6% in the UK and 6.5% for its parent company? Its profits are 50% higher here than elsewhere. The Minister stated in the House previously that she was monitoring Tesco's decision to source international brands from the UK and to implement a new formula at the 11 stores I mentioned, thus reducing the space available for Irish brands. Is she aware that Tesco is making such profits, which have long been a closely guarded secret, in Ireland and that, despite these super profits, the company is looking for Irish suppliers to take a cut of least 20%? Is that not a cause for concern?

Job losses were announced last week. According to a number of unions, two Irish suppliers are experiencing difficulties, while according to Philip Boucher-Hayes on whom I rely and to whom I listen carefully, a number of Irish suppliers were told unilaterally without so much as a letter or a telephone call that their shelf space would be reduced overnight without negotiation or explanation. I am concerned about this. Is that good enough in the current climate for our 230,000 food producers? Many of them may lose their place.

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