Mr. Kevin Sherry:

I thank the Senator for his questions. On the data analysis, we have looked very closely at it and I mentioned earlier that we had identified just short of 1,500 companies that are exporting to the UK and Northern Ireland, that those companies are the companies most immediately affected and that the impact is not uniform. It depends on their level of exports; some sectors are more export oriented than others and have more of their eggs in that basket. Those companies are clearly the most vulnerable companies and they tend to be in sectors where they have products or services that are not that easily transportable, such as construction products that do not necessarily transport very well to more distant markets. We have that data and we have been talking to those companies on a one-to-one basis. We have identified the companies that are most vulnerable, both in terms of sectors and the companies. As I mentioned earlier it is not a one-size-fits-all. Our response is tailored to the individual company. As the exchange rate deteriorates from the point of view of the euro, with sterling weakening it makes the situation more difficult for those companies if they are not hedged through a financial institution or if they have no opportunity to undertake a natural hedge. In some cases, our discussions with some of those companies are on reconsidering their supplier base and where they were importing some product from other parts of euro denominations, they may be looking at putting more of that natural hedge into sterling regions so that they can offset some of currency risk. It is true that some companies are in a more difficult position than others because no matter what they do it takes time to make that switch. We have been focusing on providing them with information and with connections. We ran a webinar on hedging. We have put companies in touch with financial institutions. We have brought the main pillar banks into Enterprise Ireland to meet our board.

The main pillar banks have met our board. We have talked and are continually exchanging information, without divulging confidential client information about their approaches and our approach, and the strategic importance of some of those sectors. I certainly would not underplay the difficulties that some individual companies are facing. We are working with them to help them address the short-term issue and competitiveness. In the long term, some of those companies are considering other markets and other potential customers innovating and being able to position their product as a higher value added premium product. Not all companies have that opportunity in the short term. It is company specific. We are working hard with those companies to try to help them with that response.

On 7 October, the currency breached the 90p mark. Predictions are not certainty. The volatility will continue. Meanwhile, companies have to manage their businesses. Other companies supplying into the UK market face the same situation. UK companies face the same issue in respect of their supply base. Switching suppliers is not easy, particularly for products that require approvals and standards on traceability. That cannot happen overnight. That fact alone gives companies some window of opportunity to make plans and moves. We are working on a daily basis and as it changes we are responding to those changes.

Although it is cold comfort to companies, this is not the first time we have had that exchange rate. It went close to parity in 2009. We have to be able to respond. In the areas where we can provide support such as competitiveness, innovation, market access and information, we are doing so. Where we have the ability to provide funding for those activities, we are also doing that.