Mr. Ian Talbot:

I thank the Chairman for his comprehensive introduction. I also welcome the students from Cork. We have a number of affiliated chambers in Cork. Last Monday we visited Cork and met Cork chamber board, Cobh and Harbour Chamber of Commerce and Mallow chamber so there is plenty of local interest.

I thank the Chairman for kindly outlining the first paragraph of my presentation and I shall move on. Chambers Ireland works to represent and promote Ireland and Irish businesses internationally through its membership of the International Chamber of Commerce, which is a global body, the World Chambers Federation, equally a global body, and Eurochambres, the European chambers of commerce network to which the Chairman referred earlier.

Chambers of commerce have always been and continue to be a vital link in the export chain for Irish companies. This is due to their internationally recognised role as trusted third parties in international trade. Members of our network assist Irish companies through their provision of trade missions and trade documentation services and the links they have built with chamber networks across the globe through out international connections. We feel that our involvement with international trade practice, from the local to the international level, makes Chambers Ireland uniquely placed to assist the Department of Foreign Affairs and Trade in assisting Ireland's recovery. We hope that today's presentation will provide the basis for continued dialogue and co-operation.

Looking at the Department's evolving role in Ireland's recovery, we have identified five areas in which we see potential for positive change: prioritising commercial diplomacy; prioritising targets; achieving a clear definition of roles and responsibilities; using the opportunity of St. Patrick's Day to support trade; and achieving cost savings and productivity gains via business process outsourcing, with the objective of recycling resources and the effort currently being put into process areas of commercial diplomacy and assisting in the creation of international trade opportunities. I shall discuss each area, starting with the prioritisation of diplomacy.

The Department has a strong record on economic diplomacy, particularly in the context of the decline in Ireland's global reputation in the wake of the economic collapse and the intervention of the troika. We note that the Department has played a crucial role in briefing international media and opinion formers on our progress to date and at all stages through the cycle of the past four or five years. We also note that Ireland's diplomatic network is one of the smallest within the European Union and that the Department works well to support businesses when required. However, changing times need new priorities, so the commercial work of the Department should be given renewed focus and an even higher priority. We recognise that much of the good work undertaken by Ireland's diplomatic community in support of business is intangible. We suggest that there be a more formal reallocation of workloads and resources to support the trade and commercial work undertaken by headquarters and diplomatic missions. Goals and targets should be identified and performance measured against them. The Department of Foreign Affairs and Trade works closely with the Department of Jobs, Enterprise and Innovation and Enterprise Ireland in facilitating an enhanced number of Minister-led trade missions out of Ireland, but we believe more can be done.

I shall outline a second point about prioritising targets. It is essential that departmental goals are prioritised. While Ireland maintains representation in countries traditionally considered of strategic importance, there may be a case to be made for focusing activities and resources on countries or regions that have the potential to be commercially important for Ireland. This will require even closer collaboration with representatives of industries in which Ireland has strong export potential and the identification of specific sectors, and in some instances specific buyers, internationally that can be focused on. Ideally a joint approach could be made using the good offices of the Department to open doors. Although it can take time to win a significant international contract, it should not be an open-ended process either. A timetable could and should be decided. If no progress is made in terms of increased commercial interaction between the exporter and importer then focus and resources can be switched to another potential trade relationship.

In terms of prioritisation of countries, we should not overemphasise the BRIC countries, which are Brazil, Russia, India and China. It has become almost a mantra that western economies should focus their energies on these countries. However, they are tough markets to crack. Exporting to China is difficult and exporting to Russia is possibly even more so. There are other current and potential markets which may not require so much toil to succeed or expand, may be more easily accessed and could produce better outcomes, particularly for Irish SMEs. We must recognise that Irish SMEs are a source for future potential growth of jobs in this economy. These include traditional markets where additional value can be achieved, such as the UK, and emerging markets where new relationships can be built. Diplomatic support should compliment the extension of the foreign earnings deduction to certain African countries in budget 2013. Countries such as Egypt, Ghana, Kenya, Senegal and Nigeria present many opportunities for Irish businesses. Furthermore, Turkey represents a huge market on the doorstep of the EU which should not be overlooked. It is important not to focus all our resources on the BRIC countries, where we will be competing with countries that have significant resources, such as the US, Japan, and Germany. It remains essential that the Department continue to support the attraction of foreign direct investment to Ireland.

I shall discuss the clear definition of roles and responsibilities. Although the Department of Foreign Affairs and Trade and the Department of Jobs, Enterprise and Innovation will likely broaden and deepen their areas of co-operation, it is important for businesses to be aware of the specific roles and responsibilities of each Department. There ought to be clear delineation and understanding between the roles and responsibilities of the Department of Foreign Affairs and Trade, the Department of the Taoiseach, the Department of Jobs, Enterprise and Innovation and so on. Such clarity will enable businesses to access the services they require and ensure accountability and accurate performance measurement.

A related point is that businesses would benefit from a one-stop website to provide information on the export or import process. At present an Irish SME will need to trawl through the websites of a number of different agencies and Departments. There is no single source to access information on the numerous requirements involved in an international trade. The United Kingdom Trade & Investment website is an example of best practice in this area. Ireland has introduced a one-stop website for small business in the area of business regulation, which is extremely good. We have the skills in a couple of Departments which we could build on to develop the same facility for trade.

Chambers Ireland would also advocate increased co-operation with the private sector. Increasingly, definitions of economic and commercial diplomacy take account of organisations in the private sector. Groups such as Chambers Ireland are well placed to support the work of the Department as it strives to make exporting and operating abroad easier. Chambers Ireland and the entire chamber network is already a key source of information and services for many businesses in Ireland. This is done via the Enterprise Europe Network of offices in five affiliated chambers in Cork, Dublin, Galway, Sligo and Waterford. Our members have the ability to leverage the networks of both Irish and national chambers of commerce globally. Plus there is Chambers Ireland's representation on the bodies that I have already mentioned, the International Chamber of Commerce, ICC, the World Chambers Federation and Eurochambres. In the context of trade, of particular relevance are the ICC committees on customs and trade and taxation, to which Chambers Ireland nominates representatives of key companies to represent Ireland Inc. at what are essentially global lobbying efforts on issues such as transfer pricing.

The fourth point is about using the opportunity of St. Patrick's Day to support trade. Ireland has a unique advantage in having a national day that is globally recognised. Every other country in the world would kill for an opportunity like St. Patrick's Day. While the Government had to pull back from related activities post-bust, this should not prevent the current Government from using the occasion to its full potential. For the record, Chambers Ireland supports and endorses the practice of Ministers going overseas to promote Ireland during St. Patrick's week. We see these endeavours as a positive investment that supports the restoration of our international reputation and will in turn support our economic recovery.

The last point is about achieving cost savings and productivity gains via business process outsourcing. We contend that finding savings within government and the public service is an essential part of reducing government debt, easing the deficit and getting the entire economy back onto a more sustainable and competitive footing. Generally, we believe that the Department carries out much of its good work on a tight budget. However, there are areas in which additional savings could be made. In our commentary on the Croke Park agreement, published in June 2012, we identified outsourcing of certain functions as one way that Government Departments can achieve considerable savings.

One area within the Department of Foreign Affairs and Trade where this might be feasible is passport processing. Considerable savings could be made not only from the wage bill but also due to reduced training costs, lower levels of investment in new technologies and lower consultancy bills. Were this process to be transferred to the private sector, the company, on foot of a tender process, becomes responsible for training of staff, investing in new technologies and so forth. This results in a considerable transfer of risk from the public to the private sector. Service level agreements would be vital. They would have to be negotiated as part of this outsourcing. It would ultimately eliminate the ever-present risk of queues building up at Molesworth Street and Members of the Oireachtas being persecuted to deliver passports to constituents.