Dáil debates

Wednesday, 12 October 2011

Priority Questions

Industrial Development

1:00 pm

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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Question 4: To ask the Minister for Jobs; Enterprise and Innovation his plans to introduce the home to export programme, local trade and investment teams to develop better trading relationships with emerging economies; and if he will make a statement on the matter. [28952/11]

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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The programme for Government sets out clearly that Ireland's economic recovery must be export-led and commits us to achieving the maximum growth in exports. Enterprise Ireland will spearhead this work.

A potential exporters' unit is currently being operationalised in Enterprise Ireland. It will offer a new service delivery and model of engagement for new and existing client companies. Along with the provision of business-related toolkits, including export toolkits which will be delivered in part on-line, the division will provide tailored export capability building workshops, modules and programmes for companies entering new markets as well as access to mentors. A new series of guides to markets is also being introduced with a focus on practical information aimed at new exporters. This will be available even to companies who do not meet Enterprise Ireland's normal employment test of having at least ten employees. The intention is to widen the range of companies which can graduate to other established programmes focussed on exporting opportunities.

Such programmes are tailored to a company's stage of export development. They include the international selling programme and the excel at export selling workshop series as well as first flight workshops and mentor services. As well as training programmes, Enterprise Ireland helps companies retain the services of industry experts to support market expansion and development. The going global fund also supports established but domestically-focussed companies to explore opportunities on the international market. Through its client knowledge services offer, Enterprise Ireland allows client companies and potential exporters access to a comprehensive library of sector and market intelligence and information on doing business overseas. Enterprise Ireland has also developed detailed third-party legal and tax contacts in priority markets which can be accessed by new exporters, as well as organising and engaging business networks in all markets wherever possible. It recently launched the second call of its very successful graduates 4 international growth programme.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister of State for his reply. I am very interested in what is happening in Enterprise Ireland. The reason I raised the question is that the programme for Government contains a number of specific commitments to improve our export performance with particular reference to the BRIC countries, such as the establishment of an export trade council, a home to export programme, a source Ireland protocol, and local trade and investment teams interacting with people in the BRIC countries to expand our export footprint there. Perhaps this has more to do with the Minister for Finance, but there is also a specific commitment in the programme for Government to exempt service companies from value added tax if they export more than 90% of what they produce. Where are we with regard to these specific commitments in the programme for Government?

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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Enterprise Ireland has a dedicated high growth markets unit in Dublin to provide further assistance to client companies doing business in a range of countries including Brazil, Russia, India and China. Trade missions support this work. Under the programme for Government, the Department of Foreign Affairs and Trade has taken particular responsibility for trade promotion. This means the diplomatic service is fully engaged in promoting trade and plans have been developed for each of Ireland's target markets. The Tánaiste chairs the new export council which brings together the focus of this work.

The Department of Jobs, Enterprise and Innovation is engaged in developing trading opportunities in emerging economies through the negotiation of free-trade agreements between the EU and third countries and improved opportunities for exporters can also emerge from reductions in tariff and non-tariff barriers through trade and regulatory discussions between the EU and China, Russia and Brazil.

To answer the question, it is an ongoing process and one must speak to the figures. Between 2004 and 2010, merchandise exports from Ireland to Brazil, Russia, India and China rose by approximately 122% and in the same period services exports to those countries rose by 688%. Another key example of this success is the fact that Ireland now has a significant trade surplus with China, which is a dramatic turnaround from the position only four years previously when we had a deficit of approximately €2.9 billion.

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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I thank the Minister of State for acknowledging the success we enjoyed as a country during the administration of the previous much maligned Government with regard to building up trade with the BRIC countries.

The latest figures available to me for July - the Minister of State may have more recent figures - show exports were worth just over €7 billion which is a decrease of 10% compared with the same month last year. When adjusted for seasonal factors, exports in July were down 12% from June. In addition to this imports increased which narrowed our trade surplus. Is the Minister of State concerned about this? Is it just a blip or has the situation turned around?

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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I understand that for the year to date exports have increased by approximately 6%-----

Photo of Willie O'DeaWillie O'Dea (Limerick City, Fianna Fail)
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There was a dramatic drop in July.

Photo of Seán SherlockSeán Sherlock (Cork East, Labour)
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The overall year to date figures show an increase from last year and exports from indigenous industries have increased by approximately 10%. The omens are good on the export side. The creation of the export trade council, which arises from the trade, tourism and investment strategy, signals a clear intention by the Government, as per the programme for Government, to drive exports even further in the countries I mentioned earlier. The new council's membership includes the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, and the Minister of State at the Department of Foreign Affairs and Trade, Deputy Jan O'Sullivan, and senior representatives from the relevant agencies and Departments. This derives from a previous policy which was borne out of common sense and will continue. There is greater emphasis, and the figures bear this out, to drive exports in the so-called BRIC countries.