Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

There is already some reduction in business confidence because uncertainty always produces that. There is some impact on exposed horticultural industries, such as the mushroom production industry. We are all aware of that. It is affecting other food exporters also. One must decide how the United Kingdom will replace its imports from Ireland on the agrifood side. Since the devaluation is across the eurozone and against other countries, the United Kingdom does not seem to have many alternative sources of supply. There could be a change of behaviour, however. To put it very simplistically, the British housewife, instead of buying steak once a week, might buy chicken. Then one would have a substitution effect that would affect exports of Irish beef to the United Kingdom. We are trying to assess these results. In addition, there will be a price change. There has already been an analysis in the United Kingdom referring to retail prices increasing there in the order of 4% to 5%. This would require a renegotiation of contracts, when the contract period runs out, by Irish exporters with a view to achieving an increase in price.

It is very uncertain and it is having an effect. It is too early to quantify it. We are taking a number of steps. As the Deputy said, the Department of the Taoiseach is taking the lead. A particular piece of work I am interested in involves our examination of the possibility of developing an export guarantee arrangement for vulnerable Irish industries. I hope to make an announcement on that before Christmas and brief the Deputy thereon.

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