Bernard Durkan (Kildare North, Fine Gael)
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Question 88: To ask the Minister for Enterprise, Trade and Employment if recent trends in exports are a positive indication for the future of the economy; and if he will make a statement on the matter. [18402/06]

Micheál Martin (Cork South Central, Fianna Fail)
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The most recent annual trade figures published by the Central Statistics Office show that the value of Irish exports for 2005 increased by 5% from 2004 and this followed a 2% rise the previous year. This increase of 5% in 2005 continues the upward trend in the value of exports, which, with the exception of the global economic slowdown, which occurred around 2002, has been a feature of our export performance since the early 1990s. I am heartened by this continuous improvement in exports, against a difficult background of ongoing low growth rates in the US and the major European economies, in recent years.

It is a key fact that one of the drivers of the success of the Irish economy in recent years has been the significant growth in our foreign trade. From a level of €35bn in 1995, our merchandise exports rose to €88bn last year, a truly impressive level of growth. This was achieved despite a significant slowdown in the economies of many of our significant trading partners. As a small open market economy, exporting over 90% of its GDP, Ireland is hugely dependent on the ability of its exporters to succeed in world markets. However, I am confident that the trend we are currently witnessing, of year on year growth in exports, coupled with a consistent economic growth rate of around five per cent per annum, bodes well for the future.

There are uncertainties in relation to oil and gas prices, following the sudden increases in recent times, which could impact significantly on both the level of our imports and on transport and other costs for exporters. In addition, the exchange rate between the Euro and both Sterling and the US Dollar may fluctuate, thereby affecting trade with these markets. Wider competitive issues for Irish companies are of course very important and these are being addressed in the work of the National Competitiveness Council and a range of initiatives identified in recent reports by the Council are being implemented.

I am confident, therefore, that the recent trends in our export performance are a very positive indication of the ongoing health of the economy.