Written answers

Tuesday, 31 May 2005

Department of Enterprise, Trade and Employment

Export Trade

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 287: To ask the Minister for Enterprise, Trade and Employment his proposals to increase exports with EU and non-EU states for the next five years; and if he will make a statement on the matter. [18461/05]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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Exploiting the prospects offered by EU states, particularly the new accession states, and non-EU states, such as China, will be critical for the future growth of the Irish economy. Ireland is a country with a relatively limited domestic market for products and services. Consequently, it is essential that Irish companies which wish to develop their full potential continue to focus on internationalisation activities and strategies. Clearly, the substantial public and private investment in capital, human resources and innovation made in recent years will go unrewarded if Irish companies are unable to successfully sell products and services in overseas markets.

Developing the indigenous enterprise base by improving its internationalisation capabilities is a priority for the Government. The ESG report, Ahead of the Curve — Ireland's Place in the Global Economy, provided a blueprint for the actions required to build on Ireland's position as a developed economy. Following detailed Government consideration of the ESG's recommendations and the publication of the ESG action plan, Enterprise Ireland was requested to respond creatively to the recommendations outlined in the plan. In particular, Enterprise Ireland was asked to focus on how best to accelerate the development and internationalisation of Irish owned business.

Enterprise Ireland's new strategic plan, 2005-07, Transforming Irish Industry, launched in May 2005, is the agency's response to the challenges set. It represents a major change in the approach of the agency and will, I believe, make a substantial contribution to the further growth of Irish companies. Enterprise Ireland's new strategy recognises that the internationalisation of Irish firms is essential for the establishment of Irish global players. Delivering quality sales and partnering opportunities for Irish companies in key sectors and markets will be a major focus for the agency.

As part of the new strategy, Enterprise Ireland's 33 overseas offices, present both in EU and non-EU countries, now report to a centralised international sales and partnering division. Overseas office staff are now aligned on a sectoral basis with their counterparts in Ireland to enhance customer support and teamwork. This will provide an even clearer focus on the needs of Irish companies as EI assists them create and implement successful strategies for market entry, development and growth. Specific targets have been established in terms of new export sales, with a target pledged of €3 billion over the next three years.

As part of the strategy, later this year Enterprise Ireland will also bring forward proposals on a joint pilot initiative with FÁS specifically designed to increase international sales and marketing skills within Irish firms. This initiative is being developed in consultation with client companies and will determine the direction and focus of future schemes.

In addition, Enterprise Ireland's productivity improvement fund was launched in May. The fund, which totals €20 million, will be allocated to companies on a competitive tendering basis and will assist Irish firms adopt advanced technologies and help them focus on managerial and skills development. This is designed to improve their competitive position. This support will ensure sustainable productivity improvements in recipient companies, which will ultimately increase exports or establish a solid base from which companies can develop their exports. Details of the fund are available on the Enterprise Ireland website.

My Department also recently undertook an evaluation of Enterprise Ireland's overseas office network and made a number of recommendations which Enterprise Ireland is currently implementing. The evaluation found a clear rationale and need for the overseas office network. It also found that Enterprise Ireland's clients view the network as playing a considerable role in export development. The network will continue to play a crucial role in developing exports in the coming years.

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