Vol. 416 No. 8
3 Mr. Barry asked the Minister for Industry and Commerce if he intends asking the IDA and An Bord Tráchtála to open offices in South Africa; and his views on whether the opening of such offices would be beneficial to both countries.
Representatives from the IDA, ABT and other State agencies and private companies accompanied me on a business mission to South Africa last November. I gave a detailed report of my visit to the House on 18 December last when I indicated that the realisible potential of the market for Irish goods and services would be best served, in the short term, by the appointment of a trade consultant there rather than by the opening of a trade office. That is still the position and An Bord Tráchtála are currently engaged in appointing such a consultant.
ABT are also further researching South Africa as a market for Irish exporters. The outcome of this work will be reviewed with potential exporters prior to possible sectoral missions in late 1992 and in 1993.
I have been advised by the IDA that at present they are not considering the opening of an office in South Africa. The IDA are working on developing the contacts established during the mission and should business develop significantly, they would consider the possiblity of establishing an office in South Africa. The decision will depend on the likely business to be generated by such an office and the costs of operating it.
As I indicated in December last, our interests in time would be served by having a trade office in Johannesburg. An Bord Tráchtála do not feel it would be appropriate to open such an office within the next six to nine months but will keep the matter under review.
Will the Minister say if we are the only country of the 12 member states with no official connection with South Africa, either diplomatic or trade?
I regret that that is so.
Does the Minister not consider that it is in the interests of both countries to open an official Government office from this country in South Africa and that it will encourage the Government there to continue along the path of dismantling apartheid? Will the Minister agree that it would be of benefit to our exports to that country and would give us the possibility of using South Africa as a base for influence throughout southern Africa and for obtaining contracts for construction, training and other areas in which An Bord Tráchtála are now interested? Will the Minister push to ensure that there is an official Irish Government presence in South Africa as soon as possible for trade and political reasons?
That question relates to a separate matter which is really a matter for the Minister for Foreign Affairs. So far as trade is concerned my attitude is that as soon as the trade levels or the potential investment levels warrant it, there will be an office. I hope that will be very quickly. At the moment, as the Deputy will be aware, the South African economy is protected by very heavy tariffs with the result that trade which might otherwise develop will not. I understand it is the policy of the South African Government to try to reduce or remove those tariffs as soon as possible. They cannot do it overnight because of the unusual circumstances in South Africa and the South African economy but, as soon as trade can develop to a more meaningful level, we will open such an office. We have an honorary consulate there but we do not have an official presence. I look forward to our having such a presence at an early date. The Minister for Foreign Affairs would share my anxiety in that respect.
Would the Minister agree that the opening of such an office would be an encouragement to the South African Government to dismantle those tariffs as quickly as possible?
I suppose it would help, but it is hard to justify the office in economic terms until we have an opportunity for trade. However, the South African Government are well aware that the Irish Government support them in their efforts to dismantle apartheid. I take the opportunity to wish them well in the forthcoming referendum.
That is a political statement; the Minister is dealing with trade. However, I agree with it.
