Andrew Doyle (Wicklow, Fine Gael)

The background to this matter is a question I raised in regard to the €7 million competitiveness measures in respect of the food development initiative introduced recently by Government, the objective of which is to improve food sector competitiveness in exports markets. The reality is that unless something is done to address the serious devaluation of sterling, this will count for nothing and will be money down the drain. Mr. Aidan Cotter, chief executive of Bord Bia stated in 2009 that the underlying performance of the industry reflected in an estimated volume a decline of almost 3%, which was impressive when set against current challenges. He also stated that sterling remains the single biggest issue for the industry, adding that it was estimated that in 2009 the depreciation of sterling would reduce the value of exports to the UK by €400 million. The actual figure in this regard was €3.1 billion or 44% of all our exports. This goes beyond food and food exports and is our single biggest exporting indigenous sector, which is hugely dependent on the UK. We cannot devalue or deal with this because we are part of the euro and the restrictions on us in this regard.

I wish to make two suggestions. Will the Minister present a case to the EU for assistance on the grounds that our food sector is at a major competitive disadvantage owing to the devaluation of sterling by our neighbour, the UK? This creates serious trade distortions in respect of cross-Border trade and for our exports. It is a competition issue which should be addressed by the Irish Government and the EU before the food production sector is irreparably damaged and jobs in the sector are lost forever. The second line of support is the availability of a State-backed credit insurance scheme which would assist exporting companies in dealing with increased costs. A similar scheme is already in place in Hungary, France, Belgium, Sweden, Holland, Austria, Germany and Luxembourg. In recognition of the difficulty of exports across the EU, the European Commission has, in response to a parliamentary question by Mairead McGuinness, MEP, simplified the rules and application procedure for countries seeking sanction to put in place a credit insurance scheme.

The €7 million competitiveness measures are supposed to protect jobs and viable companies and businesses across the food exporting sector. Unless we put in place a credit insurance scheme, this will count for nothing. Has the Minister any intention of supporting the food and drinks industry group, IBEC, which has made a strong case for the introduction by Government of a viable export credit insurance scheme? While the Government has introduced all sorts of initiatives, including innovation funds and policies, not one job has been saved or created as a result. This is an indigenous sector. Surely, we can introduce measures already streamlined and approved by the EU to protect an industry worth protecting and which can sustain and create more jobs.

I look forward to hearing the Minister of State's response. 5 o'clock

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