Vol. 394 No. 1
asked the Minister for Industry and Commerce the impact of recent world currency fluctuations on (a) Irish exports and (b) Irish imports with particular reference to identification of the negative and/or positive aspects; the measures, if any, he proposes to deal with or capitalise on this situation; and if he will make a statement on the matter.
129.
asked the Minister for Industry and Commerce if he is concerned at the threat to Irish exporters due to the fall in the value of sterling; if he has any plans to help counteract these difficulties, particularly for small Irish exporters; and if he will make a statement on the matter.
I propose to take Questions Nos. 123 and 129 together.
The only significant currency movement against the Irish pound in recent weeks has come from the weakening of sterling.
In so far as exports are concerned I am not aware that the fall in the value of sterling has created any serious problems for Irish exporters generally.
The competitiveness of Irish firms exporting to the UK has improved considerably in recent years as a result of lower inflation, lower interest rates, improvements in productivity and reductions in some important costs to industry such as electricity and telecommunications. The Government's pursuit of sound economic policies aimed at fostering a more competitive environment for Irish business, and the availability of Córas Tráchtála's marketing support services, are, in my view, the most effective ways in which the Government can assist exporters to compete in overseas markets.
As regards imports, the House will already be aware that I have taken steps to ensure that recent favourable developments in the exchange rate between the Irish pound and sterling are realised in lower prices for Irish consumers.
In particular, I would refer Deputies to a Press release issued by the Government Information Services on 24 November 1989, which indicated that I had been informed of a range of price reductions which had occurred recently because of the strengthening Irish pound relative to sterling. Other reductions are expected in the near future. On this basis, I am satisfied that there is no need for the introduction of statutory price controls, for as long as the thrust of normal competition in the market leads to appropriate levels of price reductions for the consumer.
I have asked the Director of Consumer Affairs and Fair Trade to complete an investigation into the impact of the changing exchange rate on prices. The results of this study will enable me to assess whether the range and extent of reductions taking place fairly reflect the favourable exchange rate movements. I expect to have the results of this study in the near future.
