Day 064 - 08 Dec 94 - Page 07

     
     1        A.  Yes, of course, yes.
     2
     3   Q.   In the middle of the first column it says:  "Where
     4        suppliers were not found, McDonald's set up its own
     5        subsidiaries as exclusive suppliers.  These companies,
     6        including Golden West Food and McKey Food Services, were
     7        subsequently able to buy themselves out and operate as
     8        independent companies supplying McDonald's".  So,
     9        basically, if you ever find that you cannot get the product
    10        you want to serve or use in your stores, you would set up a
    11        company to sort that out?
    12        A.  Well, this only happened in the very early days and it
    13        only happened with two products, hamburgers and buns, from
    14        the bakery.  These were the two products we tried to source
    15        in the UK and were unsuccessful at sourcing, as I explained
    16        in my evidence to Mr. Rampton on the first day.
    17
    18   Q.   When did Golden West Foods stop being a subsidiary?
    19        A.  When?
    20
    Q.   Yes.
    22        A.  I cannot recall exactly.  It was three or four years
    23        ago -- three, most likely.
    24
    25   Q.   About three years ago?
    26        A.  Roughly, yes.
    27
    28   Q.   When was it for McKey's?
    29        A.  A little longer -- probably a year before that.
    30
    31   Q.   So that would have been about 1990?
    32        A.  Approximately.
    33
    34   Q.   Was this page written by you?
    35        A.  I did not write any of this document.  I would have
    36        been interviewed for parts of it.
    37
    38   Q.   So you did not see the draft and make any comments on it or
    39        anything like that?
    40        A.  Of course, yes.
    41
    42   Q.   You did?
    43        A.  Yes.
    44
    45   Q.   Did you not suggest that they clarified the bit about the
    46        partnership with Sun Valley?
    47        A.  No.
    48
    49   Q.   You did not?
    50        A.  It is a normal term in McDonald's. 
    51 
    52   Q.   What partnership are you referring to? 
    53        A.  That our major suppliers are partners as are our
    54        franchisees.  They are all included as partners.  We call
    55        it the family of McDonald's and they are all partners.
    56
    57   Q.   What about asking them to amend the part about farming so
    58        that it was a bit clearer what you were saying on that?
    59        A.  No, I did not think it needed clarifying.
    60