Catherine Murphy (Kildare North, Social Democrats)
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497. To ask the Minister for Jobs, Enterprise and Innovation if she has raised concerns regarding Ireland's competitiveness with the National Competitiveness Council due to currency fluctuations and or collapse (details supplied); and if she will make a statement on the matter. [33465/16]

Mary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The National Competitiveness Council (NCC) reports to Government on competitiveness issues facing the Irish economy. I met with the chairman, Professor Peter Clinch on 5 July to discuss Ireland’s competitiveness performance. I subsequently brought the Council’s Competitiveness Scorecard report to the Cabinet Committee for Economy, Trade and Jobs and to Government for consideration prior to publication. I set out how improved competitiveness has been a key part of the upturn and how Brexit means competitiveness is more important than ever for growth and jobs. All of the countries with whom we trade and compete with for FDI and export share are improving their performance. We cannot stand still. Recommendations to enhance Ireland’s competitiveness particularly in light of Brexit will be included in the Council’s Competitiveness Challenge report which will be submitted to me later this year.

Favourable exchange rates vis-à-vis our main trading partners makes firms based in Ireland more cost competitive and allows them to trade more effectively in international markets. The value of the Euro against Sterling is critical for Irish exporters, particularly SMEs and employment intensive sectors such as the agri-food sector which are very dependent on strong trading activity with the UK. The value of Sterling weakened in the run up to the Referendum in the UK and has declined further in light of the UK’s decision to leave the EU.

Ireland’s exposure to currency fluctuations – arising from our high level of trade outside the Euro area, particularly with the UK– reinforces the need to maintain focus on domestically influenced aspects of competitiveness. Exporting firms need to ensure that appropriate currency risk strategies are in place and a sustainable cost base is maintained. From the perspective of the firm, companies should also seek financial advice relating to hedging and managing risks.

While Irish policy makers cannot influence exchange rates, since the announcement of the vote of the UK to leave the EU, I have been in regular contact with key agencies, in particular Enterprise Ireland to address the impact of Brexit and exchange rate volatility on enterprise. Enterprise Ireland has put together a range of supports to clients impacted by Brexit. Key measures include market diversification plans, enhanced UK market supports, management and competitiveness supports.

As part of the Budget 2017, I secured additional resources for our enterprise agencies to put more people on the ground in foreign markets to attract investment and to help Irish business who export to the UK and helping others diversify into new markets. I have asked that Enterprise Ireland intensify its work with clients exporting to the UK by providing support to improve their competitiveness in the market through its management capability and development programmes such as LEAN.