Billy Kelleher (Cork North Central, Fianna Fail)

-----because uncertainty may lead to people retrenching and looking at other areas of the world in which to invest. Ireland is a key location for foreign direct investment. One of our cornerstones is our corporation tax of 12.5%. We have many other positive areas as well. We have a highly educated and flexible workforce. We also have a strong cohort of foreign direct investment companies located in Ireland. They are located for a myriad of reasons, but the corporation tax is a central plank in all that. I urge everyone when speaking at functions, when doing interviews or when abroad to reinforce that critical message that Ireland is open for business. There is uniformity in the context of political support across all parties for the retention of corporation tax at 12.5%. We may argue over other matters but that is something that is acknowledged by everyone.

Tourism has been affected by the payscales and nature of the adverse changes in the global and domestic economies. Ireland's relative position as a leading international location for value intensive foreign direct investment has remained strong and Irish outward direct investment stock and flow have consistently increased over the past decade, most notably to the UK and the wider EU. A number of emerging trends are expected to have a significant impact on the patterns of trade, investment and tourism in Ireland in the years ahead. These include new forms of foreign direct investment, convergent technologies, the impact of climate change and an increasing focus on services, changing demographics and consumer demands. We have the potential to grow our existing key markets further and to increase or gain a foothold in the high growth, high potential markets. The UK and the US will continue to be the key markets for Ireland given our strong knowledge and understanding of these markets, proven track record, historical and cultural links, the nature of the foreign direct investment base, and the geographic proximity in the case of the UK. There is also considerable potential to expand business with our eurozone partners.

For a long time, especially in recent years, many Irish companies were going for the low-hanging fruit of the UK market. Sterling was strong vis-À-vis the euro and it was a market where we had competitive advantage. No country can have an export-led policy based on the fluctuations of currencies and we are trying to encourage Irish companies to look further afield than merely the UK market to our eurozone partners with the same currency and to the high potential growth markets emerging in Brazil, India, China and other key areas.

The new and high potential growth markets such as Brazil, China, India, Russia, Japan and the Gulf states present distinct challenges in terms of language and cultural attributes as well as differences in business cultures, practices and regulations. The strategy recognises that developing a strong trade partnership with these countries will require a sustained commitment of resources, both financial and political, over the medium term to market Ireland across all potential linkages, from trade and investment to tourism, science and technology, and for the first time in a strategy of this nature there is an explicit recognition that our strong cultural identity in many of these markets will be harnessed to support our economic efforts. What we are trying to do is build a brand Ireland, a view of Ireland as a nation that has strong cultural links with particular countries and that is perceived around the world to be a friendly nation that is independent in every way and not aligned to any political views but, more importantly, to use that as a launch pad to open further economic ties and expand trade with those countries. For that reason brand Ireland is particularly important in harnessing our strong cultural identity internationally. St. Patrick's Day celebrations, even though often ridiculed, throughout the world are a key component in marketing Ireland not only in attracting foreign direct investment but also in raising awareness of what Ireland is about. Most of the St. Patrick Day's celebrations foster an image of Ireland across the world way above and beyond what our population size would determine. For that reason it is critical that in the next few years we build on brand Ireland and use all the resources at our disposal in the various agencies and Departments and through Government and intercultural and sporting links. For example, if one mentions the show "Riverdance", the Chinese will automatically know one is speaking about Ireland. We should use these strong cultural recognition factors to advance Ireland as a brand and develop further economic ties.

Sectors to be targeted include services, tourism, food, education, life sciences, software, next generation network enabled sectors, green technology, construction and the built environment, creativity, design and technologies for the ageing population known as the silver technologies. I have been profoundly struck by the acknowledgement internationally of the creativity of the Irish as a people. I have observed this when I have travelled abroad to promote Ireland as a destination for foreign direct investment or offer encouragement to Irish companies and find markets for them abroad. As a people, we can solve problems, come up with ideas, are imaginative and entrepreneurially oriented. We must build on these foundations. One sees small Irish software companies abroad devising solutions for multinational finance companies for financial services and the operations of other small companies across the spectrum, even extending to those in the food sector, which market high value-added quality foods. There is a recognition of such creativity abroad which might not be appreciated at home until one travels abroad and sees what small Irish companies are doing around the world in promoting their products and finding a market share which, in turn, creates employment opportunities at home.

The key strengths include our strong entrepreneurial, cultural, educated and highly skilled workforce, the significant power of the Irish Diaspora, a favourable tax regime, a strong transparent regulatory framework, EU membership which is critically important, our track record in attracting foreign direct investment, our strong indigenous sector and our reputation as a premium tourist destination. Key challenges are in the areas of cost competitiveness, access, transport links, telecommunications infrastructure and banking links.

Ireland's international reputation is a critical element in our export-led economic recovery and growth. Our international reputation has been under pressure arising from the national economic downturn. Positioning Ireland's brand and reputation in new growth markets and reinforcing positive measures about our brand and reputation in key existing markets will support export-led economic recovery and drive the delivery of the key objectives across a range of areas, including jobs, indigenous exports, tourism and foreign direct investment.

A number of key actions to support implementation of the strategy are identified. They are aimed at strengthening Ireland's international image and brand, strengthening in-country presence and support, developing the internationalisation of our enterprise base, developing Ireland as a hub for global high technology enterprises and clusters, aligning visa policy with priorities in the strategy, support for small and medium-sized enterprises, continuing to develop international trade agreements, joint actions and partnerships with other countries, and effective engagement with the business community.

A foreign trade council, chaired by the Minister of State with responsibility for trade and commerce, will drive and monitor implementation of the strategy. In my capacity as Minister of State with responsibility for trade and commerce, I will meet the council within four weeks to commence a review of how we will ensure the strategy will be a living document, as it were, which everybody will embrace, ranging from those involved in the agencies and Departments to those in the private sector. We will discuss it with the key stakeholders in the next few weeks to ensure there is a buy-in and that it will be seen as a living document, a strategy that can assist Irish companies in finding new markets, presenting a positive image of Ireland abroad and, equally, at home to attract foreign direct investment.

The foreign trade council will meet at least twice a year. It is important to clarify at this stage that the new council will not be, as some reports have claimed, a new quango. The resources of the new trade council will come from existing resources within the Department of Enterprise, Trade and Innovation. It will be chaired by a senior official and me and all administrative work will be done by the Department. In case people think it will be just another quango, it certainly will not be.

Ultimately, the overall objective of the strategy and action plan is to marshal and co-ordinate the resources of the State in a way that best supports Irish firms of all sizes which are trying to trade and grow their business overseas. To ensure they meet the needs of Irish companies, my Department organised a series of consultations with representatives of the business community and business associations. One of the follow-up actions in the action plan is to make sure many Irish businesses which do not engage directly with any of the State enterprise agencies will be informed of the initiatives and actions set out in the document which could benefit them. I am amazed that some companies which are trying to export their products and services are still unaware of the supports available through Enterprise Ireland and other agencies. It is critical to highlight that there are State agencies in place to assist Irish companies in trying to find overseas markets.

We will also provide country specific intelligence on the identified priority markets, with a simple tool for evaluating export preparedness, for many small companies which are trying to gain a foothold in new markets and do not have the resources to identify new markets and become established overseas. These toolkits will act as a virtual one stop shop for these companies. Exporting to a new market can involve a high cost in carrying out market analysis, opening an office and having a physical presence on the ground. There are also cultural, legal and language differences which can have a huge impact on a small business in trying to establish itself. For this reason, we are establishing toolkits for various countries which will outline the do's and dont's for those trying to break into these markets. Many small companies try to plough their own furrow, some of which have got lost along the way, while others have achieved great success. It is important that people are aware there are State agencies in place to assist them in that context and that they are more than willing to help any small company which approaches them.

Another initiative we will take is that of putting in place an institutional framework to follow up on feedback from the Irish business community through the setting up of thematic panels. The new trade council will set up these panels which may be at sector, country or regional level, with the participation of the relevant companies and sectoral experts. The panels will discuss issues raised and identify possible solutions.

The question may be asked as to whether we need another strategy at this time, as we already have sectoral strategies for trade, tourism and investment which are being implemented by the relevant State agencies, namely, Enterprise Ireland, IDA Ireland, Bord Bia, Tourism Ireland or Culture Ireland. However, Trading and Investing in a Smart Economy has the distinction of being the first ever integrated strategy to promote overseas trade, tourism and investment. The Department has brought together all of the Departments and State agencies involved in promoting Ireland abroad, namely, the Departments of Agriculture, Fisheries and Food, Tourism, Culture and Sport, Education and Skills, Foreign Affairs and Justice and Law Reform, and the relevant State agencies, namely, Enterprise Ireland, IDA Ireland, Tourism Ireland, Bord Bia, Forfás and Culture Ireland, to prepare the new strategy and action plan. Together we have agreed that this series of actions will add to the value of current specific strategies and enable all to achieve greater success.

There has been some discussion of the job numbers in the new strategy and the number of jobs targeted in other reports such as Making it Happen and The Capital Review and job targets already announced by the agencies involved. All of the job targets are consistent. For example, IDA Ireland's strategy, Horizon 2020, covers the period up to 2014, a shorter period than that covered by Trading and Investing in a Smart Economy which covers the period up to 2015. The Capital Review covers a longer period up to 2016. Therefore, its target of 158,000 new jobs is an extension of the combined jobs target of IDA Ireland and Enterprise Ireland of 135,000 in the strategy, Trading and Investing in a Smart Economy. In addition, as part of the Trading and Investing in a Smart Economy strategy, the tourism sector envisages the creation of 15,000 jobs in the period up to 2015, giving a total of 150,000 new jobs directly associated with exporting enterprises in manufacturing, tourism, internationally traded services and leading to the creation of a similar number of new indirect jobs. There is an approximate 1:1 ratio in that respect. It is well recognised that foreign direct investment has a strong spin-off ratio. Companies which enjoy good market share abroad can create a ratio of 1:1.

The ambitious targets we have set in the new strategy are predicated on growth in the global and domestic economies and we believe they are achievable. As we are all aware, the world economy has gone through a difficult period. This has had an impact, aside from the banking challenges that continue to be faced. The fact of the matter is that the world was in recession in 2009. It bottomed out in the early part of 2010 and it is now predicted that a growth rate of 4.4% will be achieved this year. Some of our key markets such as the United Kingdom and the United States are continuing to struggle. Growth rates in some eurozone countries are flat at best. However, there has been a pick-up in the German market.

The purpose of the strategy is to ensure we will have a presence in emerging markets. We need to be able to observe where markets are emerging, monitor trends in global trade and direct our resources to such markets before they become obvious hot spots for other countries to target. It is critically important that we target large emerging markets. We have a strong presence in China, for example, on foot of the success of the ten-year Asian strategy which came to an end last year. It involved doubling exports from €4 billion to €8 billion, but that target was exceeded by approximately €2 billion. This coherent strategy was based on an understanding of the need to use all of the State's overseas resources. It showed that if consulates, embassies, ambassadors and agencies worked together to ensure the Irish brand had a strong presence in certain countries, there was the potential for market growth, even for small companies, in large markets. Some Irish companies are operating successfully in key niche areas in such markets.

The Government support framework envisaged in the action plan is critical if we are to achieve the strategy's priorities and targets. The actions set out in the plan do not constitute a quick fix. We are not trying to reinvent the wheel. We intend to promote a new approach that adds clear value. Implementation of the plan will involve sustained, concentrated and co-ordinated efforts by all key Departments and agencies, including our embassies and consulates abroad. That will increase the effectiveness and efficiency of the supports we provide for Irish companies in overseas markets. Government support can ensure our trade, tourism and investment sectors are well positioned to respond smartly and effectively to emerging opportunities as the global economy returns to growth.

As a small and open economy with relatively low levels of domestic demand, Ireland relies on trade. As this country exports over 80% of everything it produces, it is vulnerable to cyclical downturns and upturns in the global economy. For that reason, we suffer more when the whirlwind arrives and benefit more when the trade winds blow. Both strategies - Building Ireland's Smart Economy and Making it Happen - reflect the emerging consensus among policymakers that Ireland's recovery will be export-led and that employment will be created through direct jobs and sustained secondary employment. They draw on the substantial body of dedicated research carried out by Forfás, including research on potential future partnerships. They also draw on the views of representatives of community and business associations and bodies involved in promoting exports.

I thank the Members of the House who contributed to the report on Ireland's foreign trade published by the Joint Committee on Foreign Affairs, under the chairmanship of Deputy Woods, earlier this year. The report made an important input into the work of preparing Trading and Investing in a Smart Economy. The action plan for implementation of the new strategy addresses many of the issues raised in the ten-point implementation plan in the joint committee's report. As I said, the overarching objective of the new strategy is to come up with an approach that can best marshal the full resources of the State behind Irish businesses which sell goods and services abroad. It is important that we acknowledge the constant work of Members of the Oireachtas at the various committees which is seldom reported, unfortunately. It is important to acknowledge that the ten points recommended in the joint committee's implementation plan have been built into the strategy which sets up new mechanisms to strengthen co-ordination and co-operation across all key Departments and State agencies involved in the promotion and development of trade and tourism and in investment at central and local levels.

The strategy and action plan do not guarantee that we will achieve the ambitious targets we have set. They are predicated on recovery in the global and domestic economies. As the Minister for Finance said some time ago, as a Parliament, society and individuals, we should debate whether we want to meet these challenges in a positive way. Would we prefer to cower back and say we are incapable of addressing the challenges posed by the current whirlwind? Ireland has shown for many centuries, at times when it faced many difficult challenges, that it is a resilient nation. We are facing huge challenges again. If we face them with confidence, in the belief we can overcome them, that will be a good start.

The negativity continually promoted and highlighted is sapping the confidence of individuals who may wish to spend money at home and affecting the image of Ireland abroad. I do not say this lightly. When I speak at public functions in other countries, I am often asked questions based on the negativity coming from this country. Nobody can hide the fact that we are in a difficult situation. We have to believe, however, that we can overcome these difficult times. This is not a partisan or party political statement. I have more interest in the success of this trade strategy as the father of three young children than I will ever have as a Minister of State. I genuinely believe we have to stand up and be counted. Negative publicity is sometimes promoted by our detractors in other countries too. Many would like to see Ireland default and the euro undermined. Such a political view is being expressed by some media people, particularly in London. We should not fall into that trap. When we speak publicly, we should acknowledge where we are, while emphasising that as a resourceful, intelligent and rational people, we can deal with these challenges. We will be better for having dealt with them in a positive manner. We are addressing the wider systemic challenges of cost competitiveness and IT infrastructure in order that we will be in a position to capitalise on the opportunities that will present themselves as the global economy recovers.

There is ample evidence of the significance of the actions taken across the entire Government system to address the economic challenges. We have taken steps in the last two years to address key areas, for example, by sorting out the banking crisis, putting the public finances on the path to recovery and tackling our cost competitiveness. We cannot take any one of these issues in isolation. We cannot form the view that the banking crisis, as the result of the mistakes of previous Governments, regulators and Central Bank officials who took their eyes off the ball, is an issue that can be dealt with in isolation. It is a critical component in addressing how we can support small and medium-sized enterprises through the advancement of credit.

I have met the banks on numerous occasions to discuss this issue. Unfortunately, some of them, particularly AIB, have not been trying to help small and medium-sized businesses as much as they traditionally have. AIB was always positive in its support of the SME sector. I understand, however, that it has had to change its approach in recent times because of the difficulties in which it has found itself. Now that it has a new relationship with taxpayers, however, it has an obligation to assist small and medium-sized enterprises in these difficult times. The idea of starving small businesses of credit to shore up its capital base is unacceptable. We have relayed this to the banks on a number of occasions. Under the recapitalisation programme, Bank of Ireland and AIB are obliged to make available - not necessarily to lend - a sum of €3 billion per annum in the next two years. Therefore, a total of €12 billion will be made available to small and medium-sized enterprises as they try to access credit - the lifeblood of the economy - without which they will grind to a halt.

We have established the Credit Review Office, under Mr. John Trethowan, to analyse the lending patterns of banks. I ask every Senator who speaks at functions, attends business meetings or speaks at meetings of chambers of commerce to encourage those who make applications to the major lending institutions to do so in writing at the first stage. A critical component will be to get people to make applications in writing. Those who are not satisfied with the initial application can then appeal to a higher decision-making body within the bank and ultimately can go to the Credit Review Office. This is important because the Government wishes to ascertain the reason for the large discrepancies regarding the lack of credit that are reported by business organisations and which Members of the Oireachtas encounter on the streets every day of the week. I refer in particular to the manner in which the overdrafts of some small businesses are being reduced and converted into term loans, as such measures starve companies and businesses of cashflow.

The other area with which the Government is dealing is the huge challenge posed by the budget deficit. Obviously, this is the key issue facing the Government and the people in the context of the nation's future direction. The budget will be formulated over the next few months and will be presented to the Dáil in December. More importantly, however, the Government must send out a strong message that because of Ireland's vulnerability internationally, it is capable of making tough and difficult decisions. Another point that is acknowledged internationally is that the Irish people understand the difficult times in which they find themselves. Last year's budget was quite severe and involved the implementation of what have been called austerity measures, cutbacks or whatever term one wishes to use. The Irish people fundamentally understand our position and what we must do.

Clear and decisive decisions and clear leadership now are needed from all political parties. Moreover, the broader brush of social partnership must stand up and be counted on this occasion to ensure this budget and the presentation of a four-year plan will be embraced by the majority of people. If this is the case, I am quite confident that internationally, we will be viewed as a nation that has the maturity to make decisions, which will stand us in good stead. This is not about being slaves to bondholders or international markets but fundamentally about the retention by this nation of its integrity and independence to make its own decisions as opposed to others commenting on it or threatening that they would be obliged to do it otherwise.

We showed our resilience during the 1980s when we experienced a very difficult recession with huge numbers of unemployed people. The fundamentals that formed the bedrock of our recovery in the 1980s are still with us. We are still a resourceful, smart and imaginative people. We still are a highly educated and flexible people and are an exporting nation. All these fundamentals are still in place and will form the bedrock of the recovery that I believe will happen very soon. A measure of confidence, belief, hope and a buy-in across the broad political base will be key components in ensuring we are recognised internationally to be dealing with our challenges upfront by ourselves and without any prompting from anyone else.

I hope this trading and investment strategy up to 2015 will receive broad support from Members. I note it has been broadly welcomed by all those who are involved in the promotion of Irish companies abroad or of Ireland as a location for foreign direct investment. This is about brand Ireland, using our resources and ensuring the world is aware of where we are. While we have a small footprint in geographic, demographic and economic terms, we are well known across the globe and are perceived to be a friendly people. I believe it is possible to build on our strengths as an economy, a people and as individuals within the cultural context and in respect of the rest of the world's perception of Ireland. Such perceptions are mainly positive but, unfortunately, some of the negative international commentary has emanated from home. This makes things more difficult for Irish companies abroad, for IDA Ireland or for anyone else trying to attract foreign direct investment or tourism opportunities to Ireland. I look forward to listening to the views of Members and note that, in general, the document, Trading and Investing in a Smart Economy, must be brought to life and supported by all agencies and Departments. There is genuine buy-in across Departments and Government agencies and what is needed now is genuine belief that this document can deliver on the ambitious targets it sets out regarding the creation of 150,000 jobs directly and a further 150,000 jobs indirectly.