Mr. Anthony Foley:

Ar dtús, an féidir liom freagra a thabhairt faoi easpórtáil agus faoi mhéid an chomhlachta? The scale of a company is a major determinant of its exports' performance. Historically, we have been a good exporting nation, but that has primarily been driven by multinationals. Some 90% of our exports come from multinationals. Scale is particularly a determinant where consumer branded products are involved, in that it would be difficult for many small companies to develop export capabilities abroad.

Some members may recall our idea about building a trading house to act as a co-operative for small companies to export. It never worked well. Although admitting it almost sticks in my throat, one of the main issues encountered when trying to develop Jameson Irish Whiskey internationally had to do with the fact that its parent company is an international company, with access to shelf space, markets, etc. An Irish company without those international connections would not have been able to do it. When Grand Metropolitan took over Baileys Irish Cream, the former's international marketing capacity gave the latter space and prominence in duty free shops, etc. As a straight Gilbeys of Ireland product, it would not have achieved that level of prominence.

As to scale, the structure of the industry is dominated by large operators but, like the dairy industry, which is trying to promote amalgamations with an eye towards building capacity to do research and development and improving expenditure on marketing.

That would be a major determinant of the export performance.

With regard to the on-licence and off-licence side, there are approximately 5,000 people employed in off-licences, with approximately 55,000 people employed in bars, including hotel bars, around the country. Some 70% of the VAT receipts come from the on-licence side and 30% come from the off-licence end. With regard to tax associated with employment, the on-licence side is clearly the contributor. Receipts from excise are more of a 50-50 split, as it is the same excise whether alcohol is sold off-licence or on-licence. Approximately 55% comes from the off-licence side, with 45% from the on-licence side. The Deputy is absolutely correct in the basic comment that the on-licence side provides the main economic benefit in terms of employment, tax receipts and so on.