Written answers

Wednesday, 31 January 2007

Department of Enterprise, Trade and Employment

Arms Industry

8:00 am

Photo of Aengus Ó SnodaighAengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 144: To ask the Minister for Enterprise, Trade and Employment his views on recent media reports (details supplied) estimating the value of the Irish arms industry at €1 billion. [2615/07]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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I would like to thank the Deputy for this opportunity to put on record in the House a more accurate presentation on Ireland's export control system than that which has been portrayed in recent media articles.

My Department operates an export control system dedicated to preventing the export of goods that could be used in nuclear and other weapons of mass destruction, that could be used to violate human rights or exacerbate internal conflicts in the country of final destination, that could be subsequently diverted for purposes other than their stated end-use and to prevent strategic exports to countries whose behaviour is a threat to international peace.

Controls are applied on the export of military and dual-use goods, that is, items and technology that potentially have both civil and military applications. All export licences are granted in accordance with the criteria set out in the EU Code of Conduct on Arms Exports. These include respect for human rights and the rule of law in the country of final destination, regional peace and security, the behaviour of the buyer country with regard to the international community and the existence of a risk that the goods will be diverted within the buyer country or re-exported under undesirable conditions. In addition, Ireland complies fully with trade sanctions and arms embargoes that have been imposed by the United Nations, the EU and the Organisation for Security and Cooperation in Europe.

Recent media coverage has sought to convey the impression that Ireland is a major arms exporter. In the first instance I would like to recall the findings of the 2004 Forfás report, on export licensing of military and dual use goods, that Ireland does not manufacture finished military goods but that a small number of firms are engaged in the production of non-lethal components for military equipment. In 2006, for example, four fifths of the licences granted were for fire control components. Other military goods exported included ground vehicle and aircraft components and explosives used for mine-clearing purposes.

I would also like to emphasise that over 95% of licensed Irish exports are dual-use goods, the vast majority of which are in the electronics sector. Other dual use exports include computers, machine tools and cryptography software. A dual use licence is only granted when my Department is satisfied that the goods in question are intended for civil end use. If there is any reason to suspect that the goods will be used for a military purpose, or that they will be diverted to an end-use other than that specified in the application, a dual use export licence is not granted.

With regard to the export of military goods, while licensed values give an indication of exports in this area, the actual value of exports is usually significantly less. In 2005 for example, actual exports comprised less than half of the total licensed values.

This Government is committed to ensuring that Ireland's export control system is in line with best international practice and will shortly introduce in the Oireachtas the Control of Exports Bill 2007. Among the key features of this legislation are substantially increased penalties, enhanced inspection and audit powers for officers of my Department and the introduction of controls on brokering and technical assistance activities and on intangible transfers of technology. The Bill also provides for the submission of an annual report to the Oireachtas on Ireland's export control system.

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