Doyle hits Tesco on Irish prices
Published 09/11/2010 | 05:00
After reports that Tesco's margin on Irish operations is to rise to 7.2pc, Fine Gael's agriculture spokesperson, Andrew Doyle, said "no wonder it is said in the UK that Ireland is a 'Treasure Island' for Tesco".
"Ireland is one of the most lucrative markets for Tesco stores across the globe. The profit margin here is more than 7pc, while the group average is less than 6pc," he said.
"Revenue per employee in Ireland is also one of the highest compared to other countries where Tesco operates. Profits go back to the UK company and are taxed in the UK.
"So Tesco says that Ireland is a high-cost place to do business and this justifies their high prices and high mark-up on farmgate prices. Why are they not lowering prices and paying fair prices to producers?
"What is now needed is transparently fair prices, fair competition and a halt to the impoverishment of the local town centre."