Monday, February 19

Dispatches and Tesco

It seems like Tesco is out of favour this week with the folks over at Dispatches on Channel 4. I have my own concerns about a corporation the size and might of Tesco and how that impacts on competition and smaller traders. However, it seems like Dispatches was out this week just to have a general swipe at the retailer.

Again, what we have is not news. The programme claims: "The programme examines the ways in which Tesco avoids paying tens of millions of pounds in tax by exploiting legal loopholes...". The key word here is "legal". Basically the programme claims that Tesco buys properties from off shore sites to avoid paying stamp duty. It is not a well-liked process but it is entirely legal. In fact, if any of us were in the same situation I'm sure we'd do the same i.e. save ourselves a load of dosh whilst respecting the law of the land. If Dispatches has a problem with the legalities, then they should take it up with the government and make it legal. Equally, they seem to have an issue with the fact that Gordon Brown has appointed Tesco's chief exec as one of his twelve business disciples. Whatever the subtext of that might be, surely it's common sense to take advice on building business from someone who has built up one of the country and world's most successful retailers?

I'm certainly worried about huge chains like Tesco dominating the marketplace in the way they do, but surely Dispatches can do a better job than presenting a load of commentators who don't like Tesco and then 'exposing' all their legal activities?

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