Seanad debates

Thursday, 17 November 2011

11:00 am

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

Members of this House who contributed to the report of the Joint Committee on Foreign Affairs last year were very much in favour of a greater role for our embassy network in trade promotion as well as the setting up of a mechanism such as the export trade council with the participation of the private sector.

My Department now also has an enhanced role in supporting and leading Enterprise Ireland's programme of trade missions to develop and expand Ireland's exports to existing and new markets abroad. The destination of these trade missions is selected on the basis of specific priority international markets being targeted by Enterprise Ireland client companies, where the involvement of a Minister leading the trade mission will add substantially to the efforts of Irish companies to establish and develop long-term business and exports in those markets.

Currently, Enterprise Ireland is in the process of finalising proposals for trade missions in the first half of 2012. These proposals will then be discussed between the Departments of Foreign Affairs and Trade and Jobs, Enterprise and Innovation and decisions taken on the Ministers to lead each approved mission.

In addition to Minister-led trade missions, Enterprise Ireland will undertake a complete schedule of other sector-specific events and market visits for which ministerial involvement is not considered necessary. Trade missions provide an opportunity for Enterprise Ireland client companies to develop links in a market, to win export sales, to engage in international partnerships and joint ventures and establish an in-market presence. A focus on exporting underpins all missions, ranging from export opportunities identified in the mission market, market opportunities for specific firms or sectors and future growth opportunities. In future, the potential of trade missions will be maximised by integrating trade, tourism and investment promotion activities, in line with the Government's strong commitment to export-led growth and the development of new markets.

I assure the House that along with the Tánaiste, I have been very active in promoting trading opportunities through specific missions proposed by Enterprise Ireland and in the course of other working visits abroad since the transfer of certain trade promotion functions to the Department for Foreign Affairs and Trade. On 13 October, I attended an Enterprise Ireland construction sector networking event and dinner in the Irish embassy in London,which was attended by more than 52 companies. The event demonstrated the importance of Ireland as a source of high quality engineering and construction solutions and allowed leading construction figures from Enterprise Ireland client companies to engage with similar figures from the UK. The event provided an opportunity to raise the profile of Enterprise Ireland client companies that already provide market-leading construction solutions with key potential partners, while introducing senior level executives from UK organisations to Enterprise Ireland.

On 13 and 14 October the Tánaiste had a range of meetings in Japan and Korea focused on economic and trade issues. He attended the annual meeting of the Asia Pacific Ireland Business Forum, APIBF, in Seoul. From 15 to 20 October I led a very successful Enterprise Ireland multi-sectoral trade mission to the Kingdom of Saudi Arabia and to Qatar, on which 45 companies travelled. The main objectives of the visits were to help raise the profile of Ireland with established key contacts and to highlight the developing political, economic and commercial links between Ireland and Saudi Arabia and between Ireland and Qatar. The visits also provided a forum for companies active in the Saudi Arabia and Qatar markets to develop their relationships with customers and partners, while facilitating new business contacts for Irish suppliers in key strategic sectors such as construction, ICT and health care and to promote the emerging sectors of aviation, e-learning, food engineering and oil and gas where Irish companies have a strong reputation.

Over the course of the trade mission a number of Irish companies announced significant new contracts and business alliances across a range of business sectors. I am confident that the mission provided important support to the ongoing efforts of Irish companies as they continue to win new business and increase their export footprint in these rapidly growing markets and right across the Gulf region.

Last week I led a trade mission to South Africa The mission included 27 Irish companies and visited Johannesburg and Cape Town and explored opportunities across a wide business spectrum. While the focus of the trade mission was on the telecommunications, financial services and e-learning sectors, participants from a wide range of industrial and consumer product sectors were also represented, including education, waste water management, traffic management systems, plastics, publishing and pharmaceutical products.

The visit was an opportunity to raise Ireland's profile as a key trading partner and investment destination for South Africa, to emphasise the message that Ireland is open for business and to reinforce Ireland's commitment to working with South Africa at Government and business levels, through the activities of the embassy, and the State agencies. During the mission I availed of the opportunity to raise the awareness of Ireland as a source of world class products, services and technologies, to support efforts of the participating companies and enhance their relationship with local partners and customers. In the course of the trade mission Irish companies announced a number of significant contracts and strategic alliances with a value of more than €15 million across a range of business sectors.

We see South Africa as a strategically important hub for the region, and the ideal entry point for business across southern Africa. In this regard I was pleased to announce the opening of a new Enterprise Ireland office in Johannesburg. I also attended the launch of chapters of the new Ireland-South Africa Business Network in Johannesburg and Cape Town. It is hoped those networks will be expanded into other areas of southern Africa. The networks are supported by the embassy in South Africa.

Trade missions are an important part of our overall strategy of trade diversification. While the UK, USA and our eurozone partners continue to be key markets for Ireland given our strong knowledge and understanding of these markets, embedded relationships that include historical and cultural links, the nature of our foreign direct investment, FDI, base, and geographic proximity in the case of the UK, the Government is fully committed to developing and expanding engagement with key high potential markets, such as the so-called BRIC countries - Brazil, Russia, India and China - I add South Africa to the list, where we are already increasing our trade footprint. In the four years between 2006 and 2010 our merchandise exports to this group of markets have increased by 69% and our services exports by an even more impressive 130%. The Tánaiste and I will continue to focus on emerging markets in the period ahead.

In that regard I mention another area for which my Department is now responsible, namely for the organisation and management of our joint economic commissions, JECs. Currently, Ireland has JECs with a small number of countries - Russia, the Republic of Korea, Saudi Arabia and China - which provide a basis for ongoing, detailed and focused interactions with those countries. Our existing JEC with Libya, which met last year, may also be reactivated in due course. JECs are formal bilateral intergovernmental bodies dealing with trade development in all its aspects, be it mercantile or services. They provide a forum for discussing issues that relate to bilateral trade development and serve to further the development of economic, business, scientific and technological co-operation. All of our JEC partners are key emerging markets for Ireland where government to government contact is important for bilateral trade and economic relations. As Irish companies turn to emerging markets as well as our more established markets for new opportunities, our JECs have an important contribution to make in supporting Irish companies which are either trying to enter or grow their business in these markets. Again, the strategy includes a commitment to maximise the opportunities presented by the existing JECs.

JECs are not appropriate to all markets but where they exist they offer significant opportunities to raise new issues for discussion; raise again issues which are already under discussion between the two countries and seek a response within the context of the JEC; increase awareness of Ireland and the high quality products and services it has to offer; present Ireland in a positive light and highlight our key strengths. In that context last week during his visit to Russia,the Tánaiste led the Irish delegation, comprising senior representatives of a number of Departments and State agencies, at the eighth meeting of our joint economic commission with Russia, during which the opportunity was availed of to highlight Ireland's expertise in areas such as transport, in particular direct air services between Ireland and Russia; leasing of Irish registered aircraft to Russian airlines and aerospace facilities which Irish companies can offer Russian companies; energy and energy efficiency and the use of renewable energy; co-operation in the areas of innovation, telecommunications and information technologies, high-technology and nanotechnology and e-governance; third level education and English language training and; agrifood and related industries.

The meeting agreed to establish working groups in each of the sectors to provide a follow-up mechanism which will involve a new level of engagement between relevant Departments and State agencies with their Russian counterparts. It was clear from last week's meeting that there is good potential to increase exports from Ireland to Russia in these sectors, namely, education, agriculture, transport, energy, and information technology. By taking advantage of existing opportunities and playing to our strengths we can deliver the export-led growth needed to bring about recovery in Ireland's economy.

I wish to brief the House on another key area of my Department's work, which was already touched on in terms of the reference to last week's visit to South Africa. We have recognised, as has Irish business, that significant market potential is developing on the African continent, albeit in the longer term. In September this year, the Tánaiste and I launched the new Africa strategy of the Department of Foreign Affairs and Trade which acknowledges the many positive changes in Africa in the past decade. It seeks to update our relationship with African countries to move beyond aid to include stronger political ties and the development of mutually beneficial trade. The Government acknowledges that, although it remains essential, the needs of Africa cannot be met by aid alone and that business and the private sector must also play a role.

The Africa strategy was launched at the first ever Africa-Ireland Economic Forum which was attended by 20 African countries and 140 Irish businesses. This event was arranged in partnership with the UCD Michael Smurfit Business Graduate School. There was strong recognition by all present of the importance of the relationships established across Africa through our engagement in development co-operation; of the need to maintain that development co-operation, focused on reducing poverty and building inclusive economic growth; and of the need now to build on those relationships and adopt a proactive and coherent approach to Ireland's overall relations with the African continent, including trade relationships.

I have participated in several events related to increasing trade with Africa. These include the launch of the study by Value Added Africa on trade with six of our long term development partners. I also opened the Ghana Ireland Investors Forum in Dublin in October and the IIEA development studies series earlier this month when a vice president of the African Development Bank spoke of the issue of increased trade and investment in Africa.

Africa is now in a position where it can start to drive its own development. Huge levels of investment in Africa chase scarce natural resources as well as recognising that Africa, with its growing middle class approaching 300 million people, is also a market for many businesses.

Within Africa, the major challenge will be how to maximise the potential for economic growth which this foreign direct investment will bring. The challenge will continue to be how to bring about a better life for citizens, including the eradication of poverty.

Following last week's trade mission to South Africa I took the opportunity to meet our ambassadors in the region to discuss opportunities to improve trade. Enterprise Ireland participated in these consultations. Follow-up trade initiatives will involve activities in Ireland and at embassy level. In Ireland, my Department will build on the relationship with the UCD Michael Smurfit Business School and identify opportunities tor working breakfast meetings between the Irish business sector and key speakers on trade and investment in Africa. This will include a central role for the resident African ambassadors in Dublin. Activities at embassy level will be agreed by the ambassador and detailed in the annual embassy business plan.

I take this opportunity to brief the House on last month's highly successful Global Irish Economic Forum which was managed by my Department, and which clearly demonstrated that the diaspora is also a substantial asset in our efforts to increase our exports and to enhance Ireland's standing abroad. Some 270 key decision makers with Irish connections gathered in Dublin Castle. The forum, as the Taoiseach noted in his letter of invitation, provided an opportunity "for the members of the Government to meet directly with many of the most influential members of our diaspora and to discuss our priorities for economic renewal, job creation and the restoration of Ireland's reputation abroad."

The response to the Taoiseach's invitation was overwhelmingly positive. These 270 members of the global Irish network travelled from around the world at their own expense to contribute to the discussion of these key priorities and how best to achieve them. The participation of such world-renowned figures as President Clinton and Bono and the constructive and encouraging messages which they communicated were well publicised at home and internationally.

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