Dáil debates

Wednesday, 7 December 2011

Financial Resolution No. 13: General (Resumed)

 

8:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)

Sadly, Deputy Mac Lochlainn was correct in saying there would be many Christmas dinner tables with empty chairs in Ireland this year. The only way we will be able to bring these people back is by fulfilling our mandate as a Government which is to rebuild the economy and our society, restore confidence in Ireland at home and abroad and support the protection and creation of jobs. Job creation is the basis for action in the budget. As Minister of State with responsibility for trade and development, these priorities are central to the work I do and are the clear focus of the measures announced in the budget. Nobody would want to take the difficult decisions required in the budget across all areas of Government policy. However, we have a duty to the people to take the necessary action and do so with the greatest degree of fairness, ensuring the most vulnerable people are protected. We have managed to strike that balance.

The promotion of Irish exports and the strengthening of our international aid programme are central elements of the Government's foreign policy approach. From the start, the Tánaiste and Minister for Foreign Affairs and Trade and I have taken an active role in promoting our economic and trade interests andare re-engaging actively with our international partners while opening up new opportunities for Ireland on the world stage. In October the Tánaiste and Minister for Foreign Affairs and Trade visited Seoul for the annual meeting of the Asia-Pacific Ireland Business Forum and had a series of economic and trade-related meetings in South Korea and Japan. Last month he led the Irish delegation to our joint economic commission with the Russian Federation in Moscow. I led Enterprise Ireland trade missions to Saudi Arabia, Qatar and South Africa, as well as a trade event in London. I was very impressed by the representatives of the Irish companies who accompanied me on these missions. A tremendous amount of business was done, which is how we will pull the economy out of its current difficulties.

With regard to our aid programme, the Tánaiste and Minister for Foreign Affairs and Trade has visited Tanzania, co-hosting two major international meetings on global hunger and under-nutrition with the US Secretary of State, Hillary Clinton. I have also participated in the aid programme and have just returned from a visit to Vietnam which focused on development and building trade links. There is no doubt that Ireland's international reputation has suffered in recent years but one area in which it remains stronger than ever is our contribution to international development and the fight against global poverty and hunger. I am very pleased there is such strong cross-party support for our aid programme. I pay tribute to Opposition spokespersons in that regard. This reflects both the true values of the people and our sense of long-term interests globally.

Ireland's aid programme is recognised internationally as one of the very best in the world. It is strongly focused on the fight against global poverty and hunger, especially in the poorest countries of sub-Saharan Africa. It is recognised by the OECD as cutting edge and a champion in making aid more effective. Last month, in the run-up to the Busan conference on aid effectiveness, the Centre for Global Development in Washington rated our programme as one of the three most effective in the world. In recent years, in response to the economic crisis, funding for the aid programme has been reduced by approximately one third. The programme for Government contains a clear commitment to supporting the aid programme and reaching the UN target of providing 0.7% of GNP in overseas development aid. Against the most difficult of backgrounds, we have acted on that commitment in the budget. For 2012 the Government will provide a total of €639 million in overseas development aid, which on current projections will represent a figure of over 0.5% of GNP.

There has been some comment on the extent of the reduction in overseas development aid; the total reduction on the projected outturn for 2011 is €20 million; with a reduction of €10 million in funding for Vote 27 - international co-operation - Department of Foreign Affairs and Trade, and an estimated fall of €10 million in overseas development aid provided from other sources, particularly as a result of an expected lower allocation in respect of Ireland's share of the EU development co-operation budget. The overall allocation represents a strong positive statement on our continued commitment to the world's poorest people and communities and Ireland's determination to build on many years of voluntary effort and the aid programme to end extreme poverty and develop more mature links with countries in Africa and elsewhere which have not, until recently, been seen as potential political and trading partners.

We have launched a new Africa strategy for the Department of Foreign Affairs and Trade, recognising that development is about more than just providing aid. It involves empowering people to drive their own development and build mutually beneficial economic and trading links. In Africa, for example, The Economist has predicted that in the next four years, four of our priority countries - Ethiopia, Mozambique, Tanzania and Zambia - where extreme poverty and inequality persist, will also be among the world's fastest growing economies, with average GDP growth of approximately 7%.

When I visited Vietnam, I saw how Ireland's development programme was responding to the remarkable ongoing transition of that country from conflict and poverty to lower middle income status. Ireland is providing vital assistance for poor and marginalised rural and urban communities, while at the same time assisting in private sector development. At the request of the Vietnamese Government, Ireland is also sharing its own development experience. In Vietnam there is also strong co-operation between Irish Aid in the Department of Foreign Affairs and Trade and Enterprise Ireland which is highlighting important economic opportunities, especially in information technology and education.

For several months we will review the White Paper on Irish Aid in order to set priorities for the aid programme for the coming years. We will engage with Members of the Oireachtas, the public, Ireland's development non-governmental organisations and our partners in the developing world. The review will confirm our fundamental focus on poverty and hunger, putting policy into practice with the poor communities in which we work, especially in Africa. It will also help to strengthen public support for our aid programme as the right action for Ireland for the world's poor and also the people.

Ireland's economic recovery is export-led. It is essential, therefore, that we make a concerted system-wide effort to maximise the opportunities in the global market. The Department of Foreign Affairs and Trade now has a key role in implementing the Government's integrated strategy for the promotion of overseas trade, tourism and investment. The Tánaiste has established the Export Trade Council, which he chairs, bringing together the relevant Ministers and State agencies to drive this strategy forward, with the private sector participating in its work. One example of the work is that the council is examining progress in aligning our visa regime with our economic priorities. That will build on the visa waiver programme announced in June and represents the kind of joined-up action required of Government if we are to meet the challenges of export-led recovery.

The transfer of certain trade promotion functions to the Department of Foreign Affairs and Trade has sharpened the focus of our embassy network in the promotion of this country's economic and trading interests abroad. Our embassies are taking a leading role in the promotion of a co-ordinated "Team Ireland" approach with the State agencies in local markets and in the management and operation of the global Irish network overseas.

Arrangements for a programme of trade missions in 2012 will take account of the reality that the balance in the global economy is shifting markedly and that emerging economies are assuming ever greater importance. They currently account for a relatively small proportion of this country's exports but their share is increasing rapidly. Budget 2012 prioritises the promotion of international trade. It introduces a foreign earnings deduction to support our export drive by aiding companies seeking to expand in emerging markets. This targeted deduction will apply to individuals spending 60 days a year developing markets for this country in the BRICS countries - Brazil, Russia, India, China, and South Africa. The Minister for Finance will provide details of those measures in the Finance Bill.

Small and medium enterprises are making, and will continue to make, a vital contribution to our export performance and economic recovery. They will be eligible to avail of the new foreign earnings deduction when they expand into the BRICS markets. Measures such as that will provide a stimulus for SMEs. I would encourage them to take full advantage of the opportunities that are now on offer.

The budget emphasises our determination to build growth and employment, restore confidence and rebuild this country's international reputation. From the visits I have made abroad, especially where I have been accompanied by a large number of strong, creative indigenous Irish industries, that is very much appreciated internationally. This country is recognised as one that has strong exports and we have the potential to build on that in a way that will address the issue to which I referred at the start of my contribution and which was raised by Deputy Mac Lochlainn, namely, the number of Irish people who, sadly, have had to go abroad for work. As a Government we will continue to focus on ensuring that we develop every opportunity we can to provide jobs in this country by developing exports and indigenous industries. My colleague, the Minister of State, Deputy Perry, will address those issues.

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