Bernard Durkan (Kildare North, Fine Gael)
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Question 111: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the steps, if any, she has taken to ensure that consumers here do not have to go outside the jurisdiction for their shopping requirements; the action she proposes to take to address this issue; and if she will make a statement on the matter. [41254/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 112: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the extent to which she has studied the reason that consumer goods here are more expensive than in adjoining jurisdictions and other EU countries; her plans to address these issues; and if she will make a statement on the matter. [41255/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 111 and 112 together.

Consumer Price Index returns from the Central Statistics Office show that overall prices in Ireland fell by 6.5% in the year to September 2009. This compares with a fall of only 1.4 % in the UK for the same period. At the European level, the EU Harmonised Index of Consumer Prices, which is accepted as the most appropriate measure for community wide price comparisons, shows that in the year to August 2009 there was a fall of 0.7% in prices in Ireland as compared with an increase in prices of 1.3% throughout the EU as a whole.

The above returns clearly show that prices are falling more rapidly in Ireland than in Northern Ireland, the UK and in the EU as a whole. This narrowing in the differential in prices is very much to be welcomed and clearly will help the competitiveness of Irish businesses.

Whilst undoubtedly the single market offers opportunities to Irish consumers to shop anywhere within the European Union, the reality is that the majority of cross border shopping by Irish consumers occurs in Northern Ireland, which is not to be unexpected given our common land border.

The Government has been engaging with the various elements of the retail chain to try to bring greater transparency as to the reasons for the differentials in retail prices, particularly between this jurisdiction and Northern Ireland. To this end, my Department and its agencies have directed a series of actions within the last 12 to 18 months aimed at ensuring that there is the greatest degree of transparency possible as to the reasons for the north south price differentials. These actions included National Consumer Agency Price Comparison Surveys; the Forfás Report on the Cost of Running Retail Operations in Ireland; and the Competition Authority Study on the Retail-Related Import and Distribution Sector.

Bernard Durkan (Kildare North, Fine Gael)
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Question 114: To ask the Tánaiste and Minister for Enterprise, Trade and Employment her plans to ensure the competitiveness of Irish exports; and if she will make a statement on the matter. [41257/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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While ultimately it is individual businesses that must take advantage of global markets, it is the responsibility of my Department to foster the conditions which can support Irish enterprise in meeting these global challenges and opportunities and to ensure that no barriers are placed in their way. It is critical that the broad business environment is conducive to improved export opportunities and can thereby facilitate a return to sustainable export growth. We will continue to provide the appropriate supports to the enterprise sector, restore our cost competitiveness and safeguard the significant achievements of recent years.

The Smart Economy Framework sets out clearly the necessary steps for establishing a sound basis for future economic growth, taking advantage of the tide of change in world business. The overall aim of the Framework is to refocus the economy for a return to sustainable, export-led growth.

Our current enterprise policies are focussed on driving export growth momentum by supporting companies to pursue growth strategies. Our priorities include strengthening and sustaining companies of strategic importance through a series of targeted initiatives provided by the development agencies. A central priority is to ensure that companies with high growth potential and in which the State has already invested are brought through this difficult period. These are companies that will continue to be successful on world markets and will provide essential high-value employment in the future. The Enterprise Stabilisation Fund, administered through Enterprise Ireland and totalling some €100m was introduced by the Government to support companies such as these.

With regard to energy costs for businesses, which are a very significant competitiveness issue, the trend of energy prices has been downward in recent months. Following double-digit energy price reductions in May 2009, from this October there has been a further significant reduction in gas prices and a modest reduction in electricity prices for business customers.

Irish exporters have proved themselves well able to compete decisively on world markets. Between 2003 and 2007 our total Irish exports increased by more than 6% per annum year-on-year. While exports were virtually static in 2008, for the first six months of 2009 exports rose again compared to the same period in 2008.

Our performance is especially significant when compared to our EU partners. The latest figures released by Eurostat shows Ireland has the second largest trade surplus of the EU Member States for the first seven months of 2009. It is significant that some of the larger economies, such as the UK, France and Spain have very significant trade deficits. This data also shows that Ireland is the only one of the 27 member states to have positive merchandise export growth in the period January-July 2009 when compared to the same period in 2008. In most other Member States, exports fell by over 20% during this period.

Over recent years, net exports have made a very significant contribution to GDP growth. In 2008 the contribution of net exports was +2.7% and in the first half of 2009 it was +4.1%. In both cases this made a significant contribution to counteracting other elements of GDP that were negative.