Written answers

Tuesday, 24 March 2009

Department of Enterprise, Trade and Employment

Export Credit Insurance

9:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 126: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the proposals she has to assist exporters; if she will introduce a system of export credit insurance; and if she will make a statement on the matter. [10968/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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The Government is strongly committed to the development of exports as a driver to expand the economy and sustain employment, and our enterprise support measures are very much geared towards helping companies to consolidate and grow their sales in existing markets and to expand their footprint into new and emerging markets.

Enterprise Ireland is the State Agency charged with assisting indigenous enterprises to grow their exports in world markets. The Agency is active both nationally at the developmental level and, internationally in assisting Irish companies to find new markets for their products and to increase their existing level of market share. Through its network of international offices, Enterprise Ireland creates and implements successful strategies for market entry, development and growth in overseas markets. IDA Ireland client companies make up a very significant proportion of overall exports and the IDA also has a range of measures designed to help client companies to embed their operations in Ireland and to grow employment and exports. Within the last few weeks, the Taoiseach has announced the establishment of an Enterprise Stabilisation Fund to support viable but vulnerable exporting companies. This Fund is an important first step in the process of concerted support for our trading enterprises.

Against the backdrop of the current global economic downturn, a range of additional measures is currently being assessed with a view to further helping exporters and businesses generally. Various proposals have been suggested and a thorough assessment of possible supports will shortly be finalised.

There have, in addition, been several major instruments introduced to support enterprises generally. The banks recapitalisation scheme, which includes a provision to increase lending capacity to small and medium-sized enterprises by 10%, was one such carefully designed measure. This major development, coupled with a new Code of Practice on Business Lending, will be a crucial source of support for our exporting companies.

Having regard to the continued concerns of the business community in relation to the issue of credit generally, an independent study on credit availability has been commissioned by the Department of Finance, as part of the bank recapitalisation programme. I understand that this study, which will also address the issue of credit insurance and trade finance generally, is due to be completed shortly.

In relation to the possible introduction of a State Export Credit Insurance scheme, I recently requested that a separate review of the export credit insurance market be carried out by Forfas and Enterprise Ireland. This report has just been finalised and I will be bringing its findings to Government shortly for discussion. It should be appreciated that any intervention by the State in the area of trade finance must have regard to the effectiveness and tangible benefits of such a scheme for exporters generally, in light of potential significant additional costs to the exchequer. The Government will be considering the facts and possible policy responses to this particular issue within the next few weeks.

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