Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

Question 56: To ask the Minister for Enterprise, Trade and Employment the way in which he intends to counteract the slowdown in export orders for manufactured goods; and if he will make a statement on the matter. [31911/06]

John Perry (Sligo-Leitrim, Fine Gael)
Link to this: Individually | In context

Question 81: To ask the Minister for Enterprise, Trade and Employment the steps he intends to take to address the crisis in Irish exports; and if he will make a statement on the matter. [31908/06]

Michael Ahern (Cork East, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 56 and 81 together.

While there has been some deterioration recently in export performance, most notably in April and June of this year, the pattern has been that exports have tended to rebound in subsequent months, and I would not therefore regard the present situation as one of crisis or slowdown. In fact, when you look at the longer term, it can be seen that the value of our exports increased by 3% for the first six months of 2006, relative to the same period in 2005. A comparison of 2005 export figures with those for 2004 shows that exports increased by 5% in value terms year on year. That positive situation was also evident in 2004 where exports increased by 3% in value terms relative to 2003.

Overall, therefore, the value of Irish exports continues to increase incrementally year on year, and, while it is unlikely that yearly increases in export volumes will regain the levels of increase characteristic of the late 1990's, prior to the dot com slump and the tragic events of September 11th, I believe that as the worst of the global economic recession eases, Irish exporters are well placed to take advantage of an upturn in the European and wider Global economies.

Irish Government policy has been, for a number of years, to fully exploit our membership of the European Union by diversifying into EU export markets, and also to focus on new opportunities in the US and further afield. From a position of 75% of Irish exports going to the UK in 1960, we have now reached a point where the EU now accounts for 62% of our exports with only 18% of exports going to the UK. Since last year, the US has replaced the UK as our leading export market and now accounts for 20% of Irish exports. Of equal importance is the continuous transformation of both indigenous and foreign direct investment enterprises from low end manufacturing to the production of high value added goods and services such as software, telecommunications and pharmaceuticals resulting in new export opportunities to highly developed economies in the EU, the US and Japan.

The Irish Government is strongly supportive of Irish exporting firms seeking to increase their level of exports on world markets, and it does so in a number of ways: my Department through its agency, Enterprise Ireland, is active both domestically at the developmental level and through promotional activities carried out from a range of locations abroad, in assisting Irish indigenous companies to find new markets for their products and to increase their existing level of market share.

In this, Enterprise Ireland is ably assisted by our Irish Embassies abroad whose staff work closely with the agency in facilitating the development of export markets for Irish exporting companies. Close coordination is also maintained with other export promotion organizations, such as An Bord Bia, Bord Iascaigh Mhara and non-governmental bodies such as, the Irish Exporters Association and the Chambers of Commerce of Ireland. In addition, both myself, and my colleague, Minister for Enterprise, Trade and Employment, Micheál Martin, T.D., have been active in leading trade missions, in conjunction with Enterprise Ireland, to the new member states and Asia, with a view to increasing our share of exports by Irish companies to these countries.

While the focus of our efforts has in recent years been towards developing new markets in Northern Europe and the USA and, consequently, reducing our dependence on the UK export market, we have also begun to explore the potential for increasing our exports to Asia and the Far East. In that context An Taoiseach, Bertie Ahern, last year launched the second phase of the Asia Strategy, 2005-2009, following his successful visit to China. The Asia Strategy contains a number of export oriented targets and objectives, which is overseen by a committee representative of public and private sector interests, with a view to exploiting fully the potential for Irish companies to develop new markets in Asia over the coming years.

My Department and its agencies will continue to work with other organisations engaged in export promotion, with a view to increasing the overall level of Irish exports in existing markets and in creating new markets for Irish exporting firms.

John Gormley (Dublin South East, Green Party)
Link to this: Individually | In context

Question 58: To ask the Minister for Enterprise, Trade and Employment the reason Ireland's share of EU exports have fallen from 9.5% in 2001 to 7.5% in 2005. [31661/06]

Michael Ahern (Cork East, Fianna Fail)
Link to this: Individually | In context

While I am unclear of the source of the Deputy's data, I would point out that the value of Ireland's merchandise exports to the European Union has remained broadly the same in 2001 and 2005 – at some €57b (CSO data). This is notwithstanding the fact that Ireland's export levels reached record levels in 2001/2002. The exceptional figures in 2000-2002 were also distorted by what is referred to as the VAT Carousel Fraud. The general world recession following the dot com bubble burst and 9/11 resulted in a reduction of exports in 2003. However exports have been rising steadily since then, up 3% in 2004 and a further 5% in 2005 (with at a more modest increase of 1.2% within Europe between 2003 and 2005). Our biggest single market is now of course the USA.

While data on services is somewhat less robust, Forfas estimates that Irish services exports to the Eurozone in the period of 1999 – 2004 rose by 212% to reach a value of €14.1b while those to the UK, Sweden and Denmark rose by 136% over the same period to reach a value of €11.8b (Forfas International Trade and Investment Report 2005). Overall therefore, Ireland's export performance with and within Europe remains strong.

A further factor which may be influencing the Deputy's figures is the fact that the Union expanded by 10 member states in 2004 with whom we would not historically have had a large volume of trade. As exports from the new Member States would be an additional factor in the 2005 totals, this naturally would affect Ireland's percentage share of the new, larger, EU total level of exports from 25 countries as opposed to 15.