Eamon Gilmore (Dún Laoghaire, Labour) | Oireachtas source

I am pleased to present to the Chairman and the members of the select committee the Revised Estimates for my Department for 2014. I hope the committee will welcome and endorse the priorities and output targets we have set ourselves for 2014. In my remarks I will focus on Vote 28 and my colleague, the Minister of State, Deputy Costello, will address Vote 27.

I appreciate that a formal introductory statement is not required but with the Chairman's permission, I will confine myself to some initial comments outlining the situation facing the Department of Foreign Affairs and Trade at this juncture, before I introduce the various programmes managed by my Department. I also propose to address briefly yesterday's important announcement by Government of its decision to provide for a significant expansion of the State’s diplomatic and consular network.

For 2014, the committee will be aware that the overall Estimate for the Foreign Affairs and Trade group of Votes is €691 million. This compares with an Estimate of €714 million the previous year, and represents a reduction of the order of 3.2%. The allocation for spending on administration has decreased from €187 million to €175 million, a 6.2% reduction. Much of the decrease reflects the discontinuance of additional funding for EU Presidency costs, and I am satisfied that, despite the continuing tight budgetary situation, we can deliver our targets for 2014.

In the course of 2014, we will be building on Ireland’s success in exiting the EU-IMF programme. We have been working towards this objective for the past three years and its achievement is an important milestone on the road towards Ireland’s recovery. My Department has been centrally involved, in particular through the agency of our diplomatic and consular network abroad, in this achievement. The task of restoring our economic fortunes and of recovering lost ground internationally is not yet completed, however, and there is no room for complacency. At the same time, important opportunities and challenges are unfolding as we drive forward the process of economic renewal.

I will outline in a moment the steps I propose that will assist us in achieving our goal of sustainable economic growth into the future. It seems a long while ago, Chairman, since I met the select committee to present the Revised Estimates for 2013 – even if it was only July last year. I will be brief therefore in taking stock of our situation as we face into the challenges of a new year. I am pleased to report that we achieved our priorities and targets under Vote 28 within budget and that savings will be returned to the Exchequer. It bears repetition that Ireland’s Presidency of the EU was carried out very successfully and well within budget. The Presidency required an intensive effort on the part of the entire Government service. I again record my appreciation of all involved with “Team Ireland” in the delivery of that important task. The successful achievement of the Presidency – both in policy and organisational terms – is compelling evidence that Ireland remains an effective and constructive member of the EU family. It is a further important step in restoring our international reputation and one that provides us with strong momentum as we begin 2014.
Similarly, as we face the next stage of the process of economic growth and renewal, let me recall the very successful meeting of the Global Irish Economic Forum in Dublin in October. The meeting made many valuable proposals that will be followed up on this year. An underlying theme in our contacts with the global Irish community is that if Ireland wishes to be successful, we must go out to meet and engage with the world. We cannot afford the luxury of waiting for the world to come to us. In this regard also, I congratulate you, Chairman, and your colleagues on the report of the Joint Committee on Foreign Affairs and Trade, The Contribution of the Department of Foreign Affairs and Trade to Economic Recovery,which was published just before Christmas.The report is an excellent and timely contribution that will inform our work programme for 2014 and beyond. Its overall theme is consistent with our views and its recommendations are being taken on board to the greatest extent possible.
I hope you will allow me to mention also, Chairman, the review of Ireland’s foreign policy and external relations that we are now undertaking. Ireland’s foreign policy is an essential element of Government. Through it we pursue our economic prosperity and promote peace and security in Ireland and the wider world. The Department and our embassy network play a key role in promoting our values and interests abroad and in ensuring Ireland is a respected international actor. The review of our foreign policy and external relations, which I launched last October, is examining how we continue to derive the maximum benefit from international engagement. I know that committee members have been considering some of these issues and I look forward to receiving their input to the review in due course.
Before I proceed to introduce the individual programmes under Vote 28, I wish to refer to yesterday’s announcement by Government of its decision to expand the State’s diplomatic and consular service. This is the moment, given our exit from the EU-IMF programme, to take stock of the role and potential of our embassy network to serve the State in meeting our strategic interests – including our economic interests – into the future. The expansion announced by the Government yesterday will maximise potential in the areas of trade, investment, tourism and educational exchanges, all of which will be the drivers of economic growth into the next generation. On foot of the Government’s decision, eight new missions will be added to the existing network of 73 missions abroad. This takes account of the scale of the existing network, which is much smaller than many similar-sized countries with which we must compete. The expansion addresses obvious gaps and is targeted at locations where the missions can have greatest impact. The new missions are put forward under three broad headings: economic, trade and cultural significance; maintaining our influence with EU member states and; reorienting the geographic focus of our aid effort. The new missions will be small operations and there will be no additional net cost to the Exchequer. The expansion will be accommodated within existing financial resources.
The new missions will include, in the Far East, embassies in Thailand and Indonesia which are strong emerging economies that have recorded impressive growth rates in recent years. In addition, a consulate general is proposed in Hong Kong,which is a leading international trading and services hub and plays a key role in China’s modernisation programme. In Latin America, a consulate general is proposed in São Paolo, which is the commercial capital of Brazil, the world’s sixth biggest economy, and is of major interest to the State agencies. In North America, a consulate general will be opened in Austin, Texas. That will increase our capacity in another important region that cannot adequately be served from a distance. In Europe, Croatia is the EU’s newest member and the new embassy will be a channel for direct contact with its government and administration. In Africa, the new mission in Kenya - together with the upgrading of the office in Freetown, Sierra Leone - will enable Irish Aid to extend its reach and pursue the State’s aims in accordance with our new development co-operation policy: One World, One Future.
It is proposed also to close the embassy in Maseru, Lesotho, and to implement the aid programme there from the embassy in Pretoria, South Africa. Kenya is an important regional centre and, apart from its significance in terms of aid, presents significant economic opportunities. I said at the time that we closed the embassy to the Holy See that I would keep the matter under review. The time is now right to establish a modest embassy, staffed by one mid-ranking diplomat, with a particular mandate to follow the activities of the Holy See on the development and human rights front. My Department is now in the process of implementing the Government’s decision of yesterday, including with regard to seeking the approval of the relevant foreign governments in this matter. May I say that there are of course other locations – members will understand that I do not wish to list them – where, I greatly regret, it is not possible to open direct diplomatic relations at this time, due to resource constraints. We will, of course, keep the mission network under constant review.
The committee will note from our stated targets that the Department of Foreign Affairs and Trade will, over the coming year, sustain our efforts with regard to promoting Ireland’s economic and trade interests; the achievement of reconciliation and co-operation on this island; advancing our national priorities for international peace security and human rights; the provision of passport and consular services to our citizens; and continued engagement with, and support for, the Irish community abroad. I now propose to introduce each of the programmes under Vote 28 which will include a brief overview of achievements in 2013 and our priorities for 2014. Do you wish me to proceed, Chairman?