Bernard Durkan (Kildare North, Fine Gael)
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Question 160: To ask the Minister for Enterprise, Trade and Employment the way in which he proposes to curtail industrial costs with a view to ensuring the competitiveness of Irish exports; and if he will make a statement on the matter. [24112/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 166: To ask the Minister for Enterprise, Trade and Employment if exports are indicative or the competitiveness of Irish products on European or other markets; and if he will make a statement on the matter. [24118/06]

Michael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 160 and 166 together.

Ireland's success as an open market economy depends on its export performance. The seasonally adjusted NCB Purchasing Mangers' Index for May shows the best figures for Irish manufacturing since July 2004 with strong growth in new orders and output, particularly for exports. Indeed, May saw the highest rate of export orders growth in Ireland for six years. This is in the wider context of an economy that has seen its goods and services exports grow eightfold in fifteen years.

The Government is working successfully with business to promote competitive Irish exports. I have given a strong mandate to Enterprise Ireland to drive the transformation of its client base as the agency's new corporate strategy is aligned with the needs of Irish business in a competitive and global economy.

Enterprise Ireland is achieving both rapid and tangible progress in accelerating the capacity of its clients to enter export markets and their success in winning business. In 2005, export sales from Enterprise Ireland clients rose by 7.2% to €10.7 billion. Of this an impressive €1.25 billion came from an increase in new exports, an indication both of the success of Enterprise Ireland's policies and of growing competitiveness and indigenous sector strength. Despite the challenges in terms of new competition and lower costs coming from Asian economies, EI's clients grew their exports to this region by almost 15% last year. This suggests that Irish firms are competitive in those markets where we are building competitive advantage in terms of skill, innovation and high value products and services. The overall impressive export performance was supported by EI streamlining its overseas network, in line with the Enterprise Strategy Group's Action Plan to improve support for Irish exporters.

The level of industrial costs is of particular concern to this Government. Some costs, such as interest rates, fuel prices and the high demand for raw materials in Asia, are not under the direct control of Government. However, the Government is examining how to alleviate industrial costs in other areas. I would draw the Deputy's attention to the recently concluded Social Partnership negotiations where, pending formal ratification by the parties involved, it has been decided to re-establish the Anti Inflation Group and to set up a High Level Manufacturing Group. These will work towards creating a better competitive environment for our exporters.