SMALL firms lobby group ISME and the Tesco group, which bought the Quinnsworth chain, held talks yesterday, over fears that Irish suppliers could be losing out on shop maintenance contracts.

ISME said it had received renewed assurances" and accepted that Tesco will maintain and grow its existing business with supply companies in the maintenance, food and non food areas. ISME had claimed that £15-£20 million of maintenance contracts because of an apparent change in policy by Tesco. ISME said it understands that Tesco cannot provide "long term commitments to individual firms". The Quinnsworth/Tesco chain said yesterday that there would be some inevitable changes" in the short term, as it reviews all service and contractual relationships as it "seeks to secure the best value for its business and in the interests of its customers". The company said it was pursuing an active policy of favouring Irish suppliers wherever possible. "Irish suppliers who can demonstrate their ability to deliver on specifications and are competitive on price and delivery criteria will be well placed to win substantial new business," it said.

Earlier this week, several suppliers to Quinnsworth said they were being asked to partake in contracts which were of far less value to them than previously as the manufacturing element was being sourced from outside the country.

Tesco said last night that it is progressively working with and advising Irish companies on the opportunities and scope for business growth with Quinnsworth/Tesco and is also advancing its "substantial" investment plans.

ISME said it would work with Tesco/Quinnsworth to enable the company to continue its long tradition of sourcing locally and working to assist Irish companies to meet the high standards required.