Bernard Durkan (Kildare North, Fine Gael)
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Question 63: To ask the Minister for Enterprise, Trade and Employment if he is satisfied that Irish exports are adequately competitive on world markets; the noticeable trends with particular reference for Ireland to maintain its export markets throughout the EU and worldwide; if he proposes to take steps to enhance this position; and if he will make a statement on the matter. [32073/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 172: To ask the Minister for Enterprise, Trade and Employment if Irish exports are sufficiently competitive on European and World markets; the trends now emerging; and if he will make a statement on the matter. [32375/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 173: To ask the Minister for Enterprise, Trade and Employment if he is satisfied that established markets for Irish exports are being maintained to satisfy the full extent of manufacturing here; and if he will make a statement on the matter. [32376/06]

Michael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 63, 172 and 173 together.

While there has been some deterioration in export performance recently, most notably in April and June of this year, the pattern has been that exports have tended to rebound in subsequent months, and have remained competitive in a difficult global trading environment. Looking at the situation over the longer term, it can be seen that the value of our exports has 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, and that positive situation was also evident in 2004 where exports increased by 3% in value terms relative to 2003.

It is clear, however, that Irish companies, especially companies in more traditional sectors, face continuing challenges to remain competitive in international markets. Input prices continue to pose particular competitive difficulties especially given high energy prices. To this end the recent declines in oil prices from the heights reached in July 2006 are welcome. Lower costs prevalent in the newly acceded member states, increased costs domestically, the continued growth of Asian economies, and the relative strength of the Euro relative to other global currencies are just some of the conditions that Irish companies have had to face. These conditions are likely to continue to pose a challenge to Irish exporters.

Irish companies are working very hard to maintain and win new market share despite these difficulties. Enterprise Ireland, as the agency with responsibility for the development of manufacturing and internationally traded services companies, is acutely aware of the significant challenges and indeed opportunities that have emerged as a result of globalisation and increased global competition, and works with client companies to help them grow and develop on world markets.

Enterprise Ireland recognises that its client companies operate in a very different environment from that of even a decade ago. They are no longer confined to selling into English speaking markets or markets largely chosen on the basis of geographic proximity and convenience. Irish companies now operate in a broad range of culturally diverse markets. Building and maintaining strong growth in an ever more competitive and interconnected world requires creativity and imagination. Creative ideas, new and better ways of working, innovative products and services, and improved ways of marketing and delivering goods globally will be the drivers of future success. In short, these factors will ensure high-value, knowledge intensive activities that will support high-value added jobs and prosperity. To underpin their potential, Irish companies' must display a unique mix of ingenuity, ambition and business strengths.

In tandem with this, 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 ofhigh 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.

Other export destinations, which offer new opportunities in the future, are the ten newly acceded members of the EU, and Asia. 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.

Last year, the Taoiseach launched the second phase of the Asia Strategy which is designed to increase Irish exports to the main economies of Asia, such as China, Japan and India, over the next five years. Within the context of the Asia Strategy, it is envisaged that agencies, such as Enterprise Ireland, An Bord Bia, Tourism Ireland and organisations engaged in the education sector, will be combining closely to exploit and increase Irish exporting opportunities in this area over the lifetime of the Asia Strategy, which is scheduled to run until 2009.