Willie Penrose (Longford-Westmeath, Labour)
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Question 152: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the media reports that a company (details supplied) intends to start replacing products sourced here with products sourced in the United Kingdom; if in this context, she has conducted an evaluation of the impact of same on the consumer foods industry here in terms of lost income and jobs for the sector; and if she will make a statement on the matter. [18129/09]

Willie Penrose (Longford-Westmeath, Labour)
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Question 156: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has met or if she will meet with representatives of a company (details supplied) to discuss their plans to replace products sourced here with products sourced in the United Kingdom, particularly in view of the commitments given by the company that it is committed to buying Irish products; and if she will make a statement on the matter. [18134/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 152 and 156 together.

The Deputy will appreciate that issues in relation to the strategies employed by businesses, including in the area of sourcing supplies, are primarily matters for the businesses themselves. The need to reduce costs and streamline operations at all stages of the supply chain is an established feature of modern business practice. This has been the reality for manufacturing firms in Ireland and elsewhere for some considerable time and has brought undoubted benefits to consumers in terms of lower prices for manufactured goods. Nevertheless, I am aware of the concerns that have been expressed in relation to the possible implications for employment in Ireland particularly if changes in supply chain arrangements reduce the level of purchases by retailers from Irish producers.

With regard to the specific instance referred to in the Deputy's Questions, I am aware of the announcement earlier this week by the organisation concerned regarding changes it has made in relation to the sourcing of certain internationally branded products. I would advise the Deputy that I have for some time been engaged in discussions with all the various elements of the retail trade, including with the organisation concerned, in order to bring greater clarity as to the reasons for the current differential in retail prices between this jurisdiction and Northern Ireland and the UK. In this regard, the organisation concerned did meet with my colleague, Minister Kelleher, on Tuesday 28th April 2009 to outline the details of the changes in its sourcing arrangements, which it announced this week. The Deputy will note that in its public comments that the organisation concerned has advised that the changes in its supply strategy are focused on its contractual relationships with international suppliers and that it does not envisage that its new strategy will directly impact on its Irish suppliers, who will continue to compete with internationally sourced products.

The future viability and success of the retail sector, including all its constituent parts, is vitally important to the national economy. It is essential, therefore, that the focus of all those in the sector, whether they be suppliers, manufacturers, distributors or retailers, is on ensuring that the sector delivers in terms of providing the best value for money for consumers whilst also minimising the negative impact of the current trading conditions on employment.