I move: "That the Bill be now read a Second Time."
The purpose of the Bill is to increase the statutory limit of the amount of grants which may be made to Córas Tráchtála to enable that body to continue the work of promoting, assisting and developing Irish exports.
The Export Promotion Act, 1959, under which Córas Tráchtála was established, fixed at £1 million the total amount of grants which may be made to the board out of moneys provided by the Oireachtas. Subsequent amending Acts raised this limit. The latest one, in 1977, increased it to £45 million and the present Bill proposes to raise it to £90 million.
Since its establishment in 1959, Córas Tráchtála has had a key role in our export growth. In 1959 the total value of exports stood at £130 million. By 1979 that value had reached £3,498 million.
Many factors, of course, lie behind this remarkable record of expansion. But there are few who would not especially acknowledge the vital function played by Córas Tráchtála's carefully conceived and progressively implemented programmes of export promotion over the years, programmes which have always been characterised by an alert responsiveness to the developing and changing needs of our exporters. This increasing pace in the scope and volume of its export promotion activities, however, has necessarily reflected itself in increases in the board's rate of expenditure. Payments to the board by way of grant-in-aid up to 31 December 1979 amounted to £37,956,885, which leaves a balance of £7,043,115 unissued from the existing limit of £45 million. This balance is now insufficient to meet the board's financial requirements up to the end of the present year in respect of which a sum of £7.98 million will be needed.
The present Bill is, therefore, designed to relieve the statutory constraint involved. Out of the sum of £90 million now being proposed, however, the actual grant-in-aid provision to be made in each financial year will, of course, continue to be included in the annual Vote for my Department, which will come before the Dáil in the ordinary way.
As the House knows, the moneys provided annually to the board by way of grant-in-aid are expended on the provision by the board of a comprehensive package of export support aids and services. These aids and services are of a wide-ranging nature and include advice and basic market information, specialist services in the fields of market research, incentive grants for individual exporters visiting overseas markets, and the organisation of national stands at international trade fairs. All of these aids and services are subjected by the board to constant review to ensure that each one is individually suited to the changing needs of exporters, that it appropriately complements the other aids and services at any given time and that it meets the essential requirement that the funds available to Córas Tráchtála are employed in the best possible fashion.
During 1979 total exports rose to £3,498 million, which represents a value increase of 18.2 per cent over the previous year. This was no mean achievement in a year which produced an even more difficult environment for export activity than had been anticipated. Credit for this performance is due mainly to manufacturing industry, particularly in the categories producing goods other than food, drink and tobacco. These increased by almost 24 per cent in value and by an estimated 15 per cent in volume — figures which place us, in comparable respects, ahead of most of our OECD partners.
It is, of course, reassuring that exports overall continue to grow. At the same time, it is clear that the growth rate must be significantly raised if we are to reach our basic economic targets. To help maximise the gross value of exports is Córas Tráchtála's key objective. Haviing regard to the great and growing importance of exports in the economy, the successful achievement of this aim would be vital at any time. But it has never been more so than now, confronted as we are with the urgent need to close our balance of payments deficit as expeditiously as possible.
For its part Córas Tráchtála is confident that 1980 will feature another solid export performance. Industry, though hampered somewhat by adverse world trade conditions, will continue in its dominant role and increases are also anticipated in agricultural exports and those of raw materials.
The net result is likely to be a value increase in the year's total exports of about 20 per cent — and this in spite of a world recession involving a poorer performance by most of the major industrialised economies than last year.
If this forecast proves correct — and I have every confidence that it will — the principal reasons are likely to be the growing strength of Irish industry in the international marketplace and the extra effort which, as our exporters have long recognised, is necessary in the face of challenging conditions. Our exporting industry as a whole has never been better geared for success than it is today. The last ten years have seen dramatic progress in the development of professional expertise and, while there may be individual exceptions, our manufacturers in general have never been better qualified in terms of expertise, support and morale to do the job required of them.
In their export efforts these manufacturers can be assured that they will continue to be ably assisted by the full resources available to Córas Tráchtála. The organisation now has 22 overseas offices, in 19 countries and all five continents. It is particularly alert to the requirements of Irish exporters to the EEC which, in the free trade situation, is, of course, our largest potential market. Through its offices in the EEC member states, Córas Tráchtála maintains close touch with developments, and is well equipped to furnish exporters with expert advice and market intelligence in this vital area for our trade.
The House will be aware already of the expansion and improvement in Córas Tráchtála's services for 1980 as set out in its Export Promotion Programme, 1980. It will come as no surprise to anyone, however, to be told that the cost to Córas Tráchtála of maintaining existing services and providing new ones is subject to the same inflationary pressure as any other costs. I am certain, nonetheless, that the House will share my view that, in the interests of the continued expansion of our exports, Córas Tráchtála must have adequate funds at its disposal to provide the services which are greatly valued by our exporters and on which the development of our exports depends so much.
It is with confidence, therefore, that I recommend this Bill. It will increase by an additional £45 million the statutory limit on the funds which may be allocated to Córas Tráchtála to enable that organisation to continue its vital export promotion and development activities.
