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In Competition Law, no organisation is allowed to have more than a 25% presence in the UK. Last year Tesco enjoyed a 27% presence in the UK and this year is expected to grow to 34%. Tesco in Slough enjoys well in excess of 25% in the grocery retail trade that is having, according to a recent Green Party survey, a detrimental effect on community shops and poses a serious threat to High Street outlets when the new superstore opens later this year. What will the Council do when community and High Street shops close due to the dominant power of Tesco? The new Tesco store was been permitted on the basis that it forms part of the town centre and complied with the planning policy we inherited from the previous Labour administration. Our own policies would have been very different from those established by Labour, but we had little option other than comply with existing policy. Planning policies will soon come under review through preparation of the new Local Development Framework and we intend to make them more environmentally friendly. Government advice makes it clear that it is not the role of the planning system to restrict competition, preserve existing commercial interests or prevent innovation. Competition issues are dealt with by the Office of Fair Trading, part of central government. The Office of Fair Trading has investigated Tesco in Slough and concluded that the acquisition of the Co-op store should be referred to the Competition Commission unless they give suitable undertakings to address competition concerns. Tesco have given the Office of Fair Trading such an undertaking which it is understood involves disposing of the Co-op site to a rival food operator. |
25 June 2006 contact