'This is an historic event for Rungis,' French trade minister Renaud Dutreil told the gathered French press when presenting the main decisions taken to guarantee the future of the market last Friday.
'When I visited the place in July [2002], I felt the tenants' concern about the precarious nature of the market's juridical system. It was clear to me that the future of Rungis was revolving around two main topics: the preservation of its fundamental role and the broadening of its horizons to face the future.' It has taken a long time and much negotiation to reach this stage, and the idea of reforming the Rungis juridical system is not new. A decade ago tenants presented an official report on the prospects for the market, including juridical and financial issues, and in 1996 the French government launched its review. Nothing tangible has been seen or heard of since.
The facts were clear enough. To continue investing in the modernisation of the market is necessary for Rungis to retain its cutting edge in French wholesaling. e170 million are pinpointed for this project, which will run until 2008.
However, time was running short as the concession granted by the State to Rungis territory was due to end in 2017. To expand this guaranteed period until 2034 – as has now been announced – gives significant scope for new developments and renewed confidence in making them.
The market authority, Semmaris, had already put development programmes in place, but it remained vital for tenants to have upgraded, modern premises in which to conduct their business.
However, it had become difficult for them to raise the money from banks, as they were unable to guarantee a lengthy enough period as lodgers.
The new regulations give them the equivalent of a guaranteed roof over their business during the designated period. It also gives tenants the opportunity to enhance the value of their investments and to sell, transmit or even lodge them as security.
Essentially, it provides an easier way to use the loaning potential of banks.
The third main decision concerns the protected perimeter around the market.
When Rungis was built at the beginning of the 1970s, food distribution in France was primarily in the hands of independent grocers and specialists. To control and monitor the flow of food in the market was vital.
To achieve this, and to guard against the perils of wild competition, two 'protection perimeters' were created.
Within the first, the 'positive' perimeter that includes Paris and the three districts closest to the capital, all fresh food wholesale activity outside of the Rungis market was forbidden. The objective was to push the professionals to gather in a single location.
In the second, the 'negative' perimeter, which spreads up to roughly 50 kilometres circumference of the market, the activity depended on an authorities' blue-print.
The 'positive' perimeter played its role, but today has been rendered obsolete and – worryingly – not in step with European regulations. There was a risk that the system could have been forbidden by Brussels. Therefore it has been dissolved into the negative perimeter.
An advisory committee of tenants, local authorities, ministries in charge and cash-and-carry representatives will examine any appeals and the final decision will be made by the prefect of the Ile-de-France region. This should be operational by June 2004.
For Semmaris president, Marc Spielrein, the new regulations are 'the positive result of close work between the market authority and tenants. This co-operation was crucial for presenting a bound-to-succeed project to the government.
'It is totally coherent, as the long leases and extension of the guaranteed period are linked with the end of the positive perimeter. It is a strong sign of the State's confidence in the very essence of the market.' This feeling is shared by Christian Pepineau, Rungis tenants' association president: 'This is clearly a new deal for Rungis,' he told the Journal. 'From now on we have far better visibility of what's in front of us.
'Rungis has to develop its brand awareness and its market share especially from catering sector and export.'
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