Willie O'Dea (Limerick City, Fianna Fail)
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Question 56: To ask the Minister for Jobs; Enterprise and Innovation if he will list the measures he has introduced to increase exports to BRIC countries; and if he will make a statement on the matter. [36029/11]

Richard Bruton (Dublin North Central, Fine Gael)
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The Government is fully committed to developing and expanding engagement with the key high potential markets of Brazil, Russia, India and China, as these countries are very promising destinations for the sale of Irish goods and services.

The agreed programme for Government commits us to achieve the maximum growth in exports, including the long-term development of new markets. We plan to implement progressively the recommendations in the strategy and action plan for Irish trade, tourism and investment to 2015 entitled, Trading and Investing in a Smart Economy. This has a particular focus on Brazil, Russia, India and China. The formation of the Export Trade Council under the chairmanship of the Tánaiste has given new impetus to this work. It will develop initiatives that will help export growth in these markets. Specific co-ordinated market plans for each of the BRIC countries have been devised, involving all the State agencies.

I have had discussions with a number of groups regarding the scope for developing a more effective Asia trade strategy. This was specifically discussed at the global economic forum and proposals made there are being assessed.

Key instruments to pursue trade expansion are Minister-led trade missions. I led a trade mission to India in April last, with 22 Enterprise Ireland client companies participating. I would be eager to have a trade mission to China next year to reinforce our success in that market.

Enterprise Ireland has opened new offices to facilitate Irish companies developing export opportunities to these four countries. Good progress is being made in these markets albeit from a low base. In the four years between 2006 and 2010 our merchandise exports to the BRIC economies increased by 69% and our services exports by an even more impressive 130%.

At European level, I have pressed for new trade opportunities for Irish exporters, through the negotiation of new free trade agreements with India, and as part of Russia's forthcoming membership of the World Trade Organisation. The Tánaiste recently signed a programme for trade and economic co-operation with Russia which opens up new opportunities.

Willie O'Dea (Limerick City, Fianna Fail)
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On the last day I raised this question the Minister told me "an exporters' unit was being operationalised within Enterprise Ireland". Has that taken place yet and, if so, how is the new unit performing?

The programme for Government contains a number of specific commitments on this section, including creating a new home-to-export programme to share the expertise of exporting companies with firms currently reliant on domestic markets. Has this been done? The programme for Government also contains a commitment to develop a source-Ireland portal to market Irish goods and services abroad. Has this been done? There is also a commitment to establish local trade and investment teams in BRIC countries. Has this been done? In addition, there is a commitment to develop cultural and diplomatic links with emerging markets, including a scholarship scheme. Has this been done?

On another such commitment, may I take it that we can expect a provision to be included in the forthcoming budget to exempt from VAT service companies which export more than 90% of their output? That was another specific commitment included in the programme for Government.

Richard Bruton (Dublin North Central, Fine Gael)
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As the former Minister will know, the likelihood that I will reveal budget decisions is remote. Yes, a new unit is operational within Enterprise Ireland. For example, it is seeking to engage with companies which are below the threshold normally regarded as making them eligible for Enterprise Ireland involvement. This is specifically to encourage more small companies to seek export markets. I am developing a jobs strategy, as part of which we will be examining initiatives precisely in the area to which the Deputy referred. How do we enter new markets and get more companies to expand? In addition, how do we get more seasoned companies with experience to support new companies? We are working on these issues. At the global economic forum it was significant that a number of people involved in overseas markets were willing and anxious to support this work.

There is a limited range of placements in BRIC countries. The review of our strategy in these countries will examine how we can expand that footprint. There is clearly a recognition that BRIC countries provide a significant opportunity. However, one must also balance the fact that some of our more traditional markets such as parts of the USA that have not been opened up by Irish exporters provide real opportunities in the short term. We need a long-term strategy to match this in these really dynamic economies.

I understand what the Minister is saying in that all of the specific commitments mentioned are a work in progress. That is fine and we will keep in touch with the Minister on them. He quoted figures for the increase in exports to BRIC countries, but is he aware that the percentage we export to those countries in terms of GDP remains static at 3.7%? It is lower than for any of the Euro-16 areas. The trade balance with BRIC countries has dropped from €80 million last year to approximately €70 million today. Does the Minister realise that it has taken 14 years for our trade with BRIC countries to double to a figure of 3.7%? Does he accept that it will take a great deal of time, effort and continued application to build trade with them? Such trade is badly needed in view of the fact that, taking the balance of trade figures into account, our export recovery seems to be faltering, while the domestic economy remains flat.

Richard Bruton (Dublin North Central, Fine Gael)
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The Deputy is right in that these are countries in which we are working from a low base. The figures are encouraging, but this is not the final word on our attempt to exploit these markets. They indicate ups and downs, with the figures being good in some years and then there is a reversal. That is a feature of territories in which, it is widely accepted, companies have to invest in the long-term to build successful export markets. There are no short-term fixes. We need to get companies which are willing to make that level of commitment to open up these markets. The work of Enterprise Ireland lies in seeking companies which are willing to make such long-term commitments. I accept what the Deputy says, there is a lot more work to be done in these markets.