asked the Minister for Industry and Commerce if he will make a statement on the operation of the Irish Goods Council; in particular, if he has satisfied himself that the council has adequate resources to promote a major import-substitution drive; and if he will make a statement on the matter.
Written Answers. - Irish Goods Council.
25.
The need for urgent progress on the import substitution front is well illustrated by the fact that Ireland's current imports of goods and services are equivalent to 53.4 per cent of GNP, compared to an EC average of 28.5 per cent.
The Government are determined to bring about a substantial reversal of this situation and the Irish Goods Council will play a key role in this regard. It is estimated that import substitution opportunities represent annual new business potential for Irish firms worth £1.2 billion. I am convinced that Irish firms have the potential to service the bulk of this demand and it is my intention that, with the advice and assistance of the Irish Goods Council, our native firms will achieve this goal. Indeed, an indication of what can be achieved is the fact that in 1986 Irish firms secured new orders worth £8 million in the grocery sector alone, as a result of initiatives taken by the Irish Goods Council.
The Irish Goods Council already provides a wide range of marketing support and industrial sub-contract services together with sectoral trade promotions and in-store retail promotions. It is my intention that the Irish Goods Council should increasingly focus its efforts towards nurturing the development of a basic marketing capability in smaller Irish firms which currently confine their activities to the home market. It is only by developing this marketing ethos, that smaller Irish firms will be able to mount a sustained challenge to the present level of foreign competition.
I am also anxious that Irish firms should be made more fully aware of the range of opportunities for import substitution which are available. In reply to a question on 14 October 1987, I informed the House that I would be seeking Government approval for a number of initiatives aimed at assisting Irish firms to maximise their share of the home market. I am confident that this combined approach of building the marketing strengths of Irish firms, coupled with mechanisms for alerting such firms to the opportunities which are available, will produce valuable and sustained results. I am satisfied that the Irish Goods Council have the capacity to play a major role in achieving this very desirable outcome from the resources which are being put at its disposal.