Written answers

Tuesday, 6 March 2007

Department of Enterprise, Trade and Employment

Economic Competitiveness

11:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 105: To ask the Minister for Enterprise, Trade and Employment if he is satisfied that Irish export markets are sufficiently well placed to withstand competition; and if he will make a statement on the matter. [8534/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 369: To ask the Minister for Enterprise, Trade and Employment if he is satisfied that Irish exports are likely to maintain a competitive edge on world markets; the issues he intends to address in this regard; and if he will make a statement on the matter. [8903/07]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 370: To ask the Minister for Enterprise, Trade and Employment the expected or extent of growth of Irish exports over the next five years; and if he will make a statement on the matter. [8904/07]

Photo of Michael AhernMichael Ahern (Cork East, Fianna Fail)
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I propose to take Questions Nos. 105, 369 and 370 together.

While there has been some variation in our merchandise export performance during the course of this year, the latest expectations, based on figures from the CSO, are that the value of exports for 2006 will increase by 3% relative to 2005, when full year figures for last year are available later this month. This is a very creditable performance, against a background of a difficult global trading environment, and shows that Irish exports have remained competitive on world markets. Similar gains were made in the previous two years, with increases of 3% between 2003 and 2004 and also 3% between 2004 and 2005. In relation to services exports, where more detailed data is now available from the Central Statistics Office, the rate of growth is even more impressive, with these exports growing by 9% between 2004 and 2005, the latest year for which data is available.

Preliminary indications from Enterprise Ireland, the agency with responsibility for the development of manufacturing and internationally traded services companies, are that Irish companies have gained strong positions in international markets during 2006, which will result in the achievement of one billion euros in new export sales for the full year.

The Irish Government's policy has, for a number of years, been 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 merchandise exports going to the UK in 1960, we have now reached a point where the EU now accounts for 64% of our exports, with only 17% of exports going to the UK. During 2006, the value of exports going to key markets such as the United States, Germany and Belgium showed solid growth.

Since the accession of the new EU Member States, new export opportunities have been developed and exports to these countries are increasing. For example, during 2006, exports to Poland increased in value terms by 36%, to the Czech Republic by 38%, to Slovakia by 28% and to Estonia by 60%. I have no doubt that in time, Irish exporters will establish a substantial presence in Central and Eastern Europe.

The second phase of the Asia Strategy, launched by An Taoiseach in 2005, prioritises eight countries in Asia and sets out targets for increasing our exports to that region up to 2009. Within the context of this Strategy, work is underway to ensure that agencies such as Enterprise Ireland, 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 and beyond.

In addition, both myself, and my colleague, the Minister for Enterprise, Trade and Employment, Micheál Martin, T.D., continue to be active in leading trade missions, in conjunction with Enterprise Ireland, to target markets abroad with a view to increasing our share of exports by Irish companies to these countries.

I am confident that the strategy of diversifying into export markets abroad, such as the wider EU, the US and Asia and the ongoing process of building on the higher value sectors of the economy, particularly in the knowledge-based areas, will ensure that Irish exporters will continue to rise to the challenges posed by the global trading environment and increase the value of their sales incrementally, for the future. It is difficult to make firm predictions for the next five years, given the many uncertainties that exist, but the indications are that we will continue to enjoy steady growth in our export trade and maintain a healthy trade surplus, as at present.

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