Seán Crowe (Dublin South West, Sinn Fein)
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442. To ask the Minister for Foreign Affairs and Trade why the cost of running Irish embassies and consulates abroad rose by 10.5% in 2015 as compared to 2014. [4467/16]

Charles Flanagan (Laois-Offaly, Fine Gael)
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My Department keeps the running cost of our Embassies and Consulates to a minimum and ensures the delivery of a value for money service for the taxpayer.

During 2015 the following factors contributed to an increase in our Embassies and Consulates running costs.

Firstly, in January 2014 the Government agreed on the expansion of the Irish Embassies and Consulates network. Embassies were established for the first time in the fast-growing economies of Thailand (Bangkok) and Indonesia (Jakarta). Consulates General established in the financial and business hubs of Hong Kong (China) and Sao Paulo (Brazil), and in the booming tech hub of Austin, Texas (USA). Following the accession of Croatia as the 28^thmember state of the European Union, an Embassy was established in Zagreb. The Government has also re-opened an embassy in Nairobi, Kenya for economic development opportunities and a one-diplomat embassy with a focus on international development was re-established at the Holy See to enable Ireland to engage directly with the leadership of Pope Francis on the issues of poverty eradication, hunger and human rights.

This expansion of the Embassies and Consulates network commenced in late 2014 and as a result only partial costs were incurred in 2014. However in 2015 the full year running costs, and the initial establishment costs, of these missions were incurred.

As part of the same process, the Embassy network underwent some rationalisation and redeployment of staff. Ireland's Embassy to Lesotho was closed, with Ireland's Embassy in South Africa assuming responsibility for the Kingdom of Lesotho. The Irish Embassy in Vilnius, Lithuania, was also downsized. Ireland's existing Irish Aid office in Freetown, Sierra Leone, was upgraded to Embassy status, at no additional cost to the State.

Secondly, the Euro has been weak against other international currencies, in particular the US Dollar and Sterling, resulting in significant adverse exchange rate fluctuations. While this has been a significant advantage to our exporters it has added significant operating costs in the vast majority of the international locations in which this Departments operates outside the Euro zone area.

Thirdly, as world economies recover inflation rates in these markets are rising more rapidly than in Ireland resulting in increased operating costs in the local market. This increases our costs of operating in these markets.

The work of our Embassies and Consulates around the world continues to be important in Ireland's economic recovery and the restoration of our international reputation. Our Embassies and Consulates work in support of Ireland's interests include:

- Promoting Ireland as a source of high-quality exports, a destination for investment, research, study and tourism to targeted audiences and contacts;

- Supporting trade missions and other trade-focussed high-level visits, record numbers of which have taken place in the last four years;

- Directly assisting Irish companies with advice, introductions and working to resolve regulatory or market access issues, in partnership with Enterprise Ireland;

- Providing frontline consular and passport services to Irish citizens overseas;

- Influencing and negotiating for Ireland on issues that could impact our interests and priorities.