asked the Minister for Industry and Commerce if he will give details of the resultant effects in the operation of State marketing bodies such as An Coras Tráchtála and the Irish Goods Council arising out of the 1988 Book of Estimates and the curtailment of expenditure.
Ceisteanna—Questions. Oral Answers. - State Marketing Bodies Funding.
49.
CTT's grant-in-aid for 1988 is £20.022 million. This is a reduction of £3 million on 1987. The allocation to CTT under the special subhead for the market entry and development scheme remains unaltered in 1988 at £1.250 million.
The impact of this reduced allocation to CTT in 1988 will be offset by the fact that CTT are obliged to increase their fee income in 1988 by at least £1.3 million. CTT have already announced the commencement of their new range of charges for services such as market investigation, market feedback, market information, market introduction, agent and distributor assessment, field assistance, office facilities, interpreter and courier services. The Deputy will recognise that the charges involved, which range from £50 to £400 according to location and level of services, are justified in the current financial situation.
I have also issued new guidelines to the board of CTT, included among which is the need for that organisation to become increasingly self-financing. CTT have responded positively to this new idea and are currently looking at ways in which they can increase the income derived from their services to industry.
CTT fully recognise why their grant is reduced and remain confident that they can continue to provide a comprehensive range of supports, information and development services to exporters, particularly those in indigenous industry.
The Deputy is aware that the Government have reconfirmed their commitment to domestic marketing by maintaining the Irish Goods Council's allocation for 1988 at £1 million. The Irish Goods Council intend to maintain their current range of activities and level of services to industry in 1988 by meeting any increase in overhead costs, which they estimate will be relatively small, through modest increases in their charges for services and through minor reductions in the level of direct contributions which they make to projects.
Will the Minister of State now admit that, despite all the rhetoric and PR in the marketing area, utilising these services is like taking a taxi, with the meter running continuously for every consultation, in regard to the new fees which have been introduced? Will he also agree that there is a great danger that these organisations, who are now depending on fees for their incomes, will switch their services towards remunerative and lucrative areas instead of concentrating on other services which are more important and necessary?
I am confused by the Deputy's remarks. The doors of CTT and the Irish Goods Council are fully open to Irish exporters——
At a price.
——and Irish business people. It is not true to state that every service is charged for. Consultations can take place and the meter is not ticking. However, I am sure if the Deputy thinks about it he will agree that successful exporters should reimburse a State organisation. It is a businesslike idea to which the board of CTT are fully committed. It will mean that CTT can go after the areas from which they can get the best possible return on exports. It is a radical idea and the Deputy should support it.
Will the Minister agree there is a danger that services will be switched to remuneratively lucrative areas? Will he give a specific commitment to the House that small firms — 80 per cent of which do not export — will be exempt from all such charges from both organisations?
Small firms will get an excellent service from CTT. The question of charging only comes into effect when CTT have finally worked out how to implement payments by results.
Will the Minister give a commitment——
I will give a commitment and issue an invitation to any small firm to talk to CTT. Money will not be a difficulty but I am sure the Deputy agrees that CTT should aim to earn as much revenue as possible from successful exporters. If the services of CTT are not successful in regard to a small exporter, there is no charge for most of the aspects of that service. However, where an exporter does very well with the help of CTT, I intend to ensure that that exporter will pay a certain dividend to CTT for their services.