Tesco ‘forced’ to buy abroad, Greencore boss argues

TESCO was “just doing what it was told” when it decided to source certain products from Britain instead of Ireland as the head of one of Ireland’s biggest companies accuses the Government of favouring discount retailers.

By allowing the likes of Aldi and Lidl to operate in Ireland, both of which source their products from abroad, Greencore chief executive Patrick Coveney said that Tesco was “forced” to behave in the way it did when it switched to foreign suppliers from Irish ones.

Mr Coveney said Tesco had to drive down prices and to do this it had to source products in England, where they were cheaper than in Ireland.

He said that Tesco acted in a rational way when consumers were demanding lower prices.

Tesco came under fire recently by deciding to source some of their goods abroad instead of from Irish suppliers.

The supermarket has claimed it can source the same goods cheaper in Britain than in Ireland.

Mr Coveney was speaking at the annual Cork Chamber conference yesterday, where homeowners were told that they must do more to conserve energy ahead of commodity price rises.

For this reason, Bord Gáis announced it is investing in a major energy efficiency initiative next year offering homeowners the chance to save on their energy bills.

Homeowners will, according to Bord Gáis, be offered a range of energy efficiency products and services, which Bord Gais said is a first for Ireland.

The move will create 250 jobs and is part of a €2.5 billion investment by Bord Gáis in six projects which will also create 2,000 construction jobs sporadically over five years.

Bord Gais chief executive John Mullins said:“A reduction in the number of new houses being built, combined with people moving homes less frequently, means that investing in improving the energy efficiency of people’s homes makes financial sense.

“Bord Gáis will launch a range of energy efficient services and products which will assist homeowners to reduce their energy bills.

“This is a first for Ireland and will allow homeowners and businesses have direct access to a suite of energy saving products and services through Bord Gáis,” he added.

The six projects, which are in varying stages of completion, include the €400 million Whitegate power production plant, a €1.2 billion investment in wind energy projects and €300m in electricity peaking plants.

Energy Minister Eamon Ryan said: “Energy efficiency allows people to reduce their energy demand as they save money.

“It reduces our fossil fuel bill while fuelling the economy – bringing jobs to the construction sector and keeping our homes warm.

“These are green jobs in the green economy and I congratulate Bord Gáis on embracing this exciting future.”

Meanwhile, Mr Mullins and Mr Coveney said they both believed that by this time next year Ireland will be out of recession.