Mary White (Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I welcome the gentlemen and thank Mr. Tobin for his chairman's report and congratulate Mr. Foley on his excellent report on beverage exports from 2000 to 2011. The value of exports by the drinks sector performed very well increasing from €854 million in 2000 to a peak of €1.324 billion in 2007, or 55% over those seven years. From the viewpoint of the direct benefit to the economy, the share of those exports which go directly into the Irish economy through wages, spending on Irish raw materials and on services is highly significant in sustaining our economy, thousands of households and many communities.

The estimate that half of the value of exports flows into our economy in this way reflects the many raw materials sourced in Ireland, such as barley, apples and milk. The Baileys example is one which illustrates this well. According to the study, three quarters of its raw ingredients and packaging come from Ireland, including 220 million litres of fresh Irish milk. I am familiar with the Baileys product as a co-founder of Lir Chocolates. We use the unique Baileys liqueur in the production of our Baileys chocolates which are, in turn, exported.

My job was to try to get Baileys to become a partner of Lir Chocolates and I spent seven years doing that because I had to deal with changes of managing directors over the years but eventually it was agreed with Mr. Ned Sullivan. It was an extraordinary catalyst for Lir Chocolates and gave it an energy and excitement because we had a partner with a worldwide company to get into export markets. Everybody around the world knows Baileys, so we are indebted to Baileys for that and for the continued success of the export of our Baileys chocolates.

As Seanad spokesperson on jobs and innovation for Fianna Fáil, my focus is on encouraging every sector of our economy which has the capacity to increase desperately needed exports and maximising the resulting domestic expenditures. For us to help the drinks industry going forward, I would strongly encourage it to set out an ambitious three to four year export plan and the projected domestic expenditures which will benefit Irish companies. The Jim Beam group purchasing Cooley Distillery and Irish Distillers expanding into the United States is tremendous and the Grant company developing Tullamore Dew is fantastic. I do not need to be convinced if companies must be owned by other companies to get into a market. Many Irish people do not really understand how difficult it is for small Irish companies which do not have the marketing spread or tentacles around the world, to get new markets.

If the industry commits to strong export growth, it strengthens the case for very active Government, political and diplomatic action to overcome unjustified tariffs and non-tariff barriers by other countries to Irish drinks exports, such as the high tariffs imposed by India to which Mr. Tobin referred. I would encourage our committee to fully support such action but stress that it would help if the industry set out its plans to contribute to exports and jobs in our economy over the years.

Mr. Tobin referred to the drop in consumption of 20% over the past ten years. Ireland still has a very high level of alcohol consumption. We all know that. There is no doubt it is embedded in our culture. I travelled all over Italy and France for one month on my summer holidays with my husband and there is no doubt that other cultures do not binge drink. They enjoy alcohol as part of their daily life and do not drink to extreme. We have a cultural problem.

Mr. Tobin referred to Ireland having some of the highest alcohol taxes in Europe but we also have extreme price discounting and special promotions of alcohol. The industry should recognise these issues. The current political debate on alcohol policy, including minimum pricing and the extent of sports sponsorship by the drinks industry, reflects the desire of the public and politicians to address these very issues.

This committee is the most important one in Leinster House. The No. 1 problem in Ireland is employment - keeping people in jobs and creating new jobs. If the industry can come up with something, we will help it. The positive side of it is that it makes a tremendous contribution to the employment of Irish people.