asked the Minister for Industry, Trade, Commerce and Tourism if the proposed new export development scheme referred to in the White Paper on Industrial Policy has yet been implemented; and, if not, if he will specify details of this proposed new scheme and indicate how it is intended to operate it.
Ceisteanna — Questions. Oral Answers. - Industrial Policy Schemes.
5.
I presume the Deputy is referring to the new market entry and development scheme.
Final discussions in relation to the operational details of the scheme are now taking place between my Department and CTT which will be the main implementing body. The scheme will be introduced shortly and will be on a pilot basis initially.
The objective of the scheme is to assist exporters who satisfy rigorous export development and marketing criteria with an agreed proportion of the costs of entry and development into new markets. Repayments by the exporting firms will be arranged so as not to damage the firms' cash flow in the earlier years of the project. Accordingly the exporter is protected by the guarantee in the event of any degree of failure of the new export project.
Funds provided for this purpose by a financial institution will attract a Ministerial guarantee.
Can the Minister indicate what will be the approximate cost of operating this scheme during 1985? Can he be more specific about exactly when it will be operational having regard to the fact that it was promised again in July 1984? Does he regard it as of importance and of urgency in encouraging exports and, if so, can he assure the House that it will be operational and properly publicised to would-be exporters as a matter of urgency?
It was never the intention that this scheme would be introduced before 1985. No money was provided in the 1984 Estimates for Córas Tráchtála Teoranta for it, so that there has been no delay in introducing it. It will be introduced this year as planned.
Is legislation required to introduce it?
No.
What arrangements is the Minister making to appoint extra marketing executives with regard to creating trade abroad? This appears to be a very fundamental issue in regard to this whole arrangement because many companies here — and it applies especially to CTT——
I am afraid I would be remiss if I did not point out that this is not a question but a speech.
No, it all hinges on the question. What arrangements are being made to appoint additional personnel in the export field abroad under CTT because it is most essential that that be done? Is the Minister aware that there have been a lot of complaints on the part of companies here at the lack of personnel abroad?
I am afraid that is a separate question entirely.
But it is a very fundamental one.
It may be but it is a separate question.
It is a fundamental one——
I am not denying any of that but it is a separate question
Would the Minister agree with me on that?
I am calling Question No. 6.
I think the Minister agrees with me that we should do something about that.
May I avail of this opportunity to put a request to the Minister, that is that while many of us would wholeheartedly welcome this scheme, in drawing it up we should not be over hidebound by stipulations, regulations and so on. I might suggest to the Minister that if he takes that approach he will prevent happening to this scheme what happened the venture capital scheme introduced by the Minister for Finance under the 1984 Finance Act which in effect has come to a halt. I think the Minister himself will admit that that happened because of a whole rigmarole of clearances, certificates and regulations. This scheme is urgently needed, I welcome it and I would ask the Minister to bring it in crisply and cleanly rather than allowing it become tied up with red tape.
There will not be red tape of the kind the Deputy is afraid of in respect of this scheme. However, companies will have to have a development plan which will show that they will make good use of the aid.
I omitted to give Deputy Taylor some information that is available in regard to an earlier question, that is to the effect that there is provision for £615,000 to be spent on that scheme in 1985. Hopefully at least ten firms will participate this year, rising to 40 in the following year.
Question No. 6.
What plans has the Minister for the co-ordination of all the different marketing interests in this country, especially in the agri-industrial sector because there is too much overlapping in regard to the export market?
I should like to answer that question but it is a separate one from that posed.