Vol. 429 No. 5
3 Mr. Cullen asked the Minister for Tourism and Trade the plans, if any, he and An Bord Tráchtála have to improve Irish trade; if An Bord Tráchtála will have any responsibilities in relation to other Departments; and if he will make a statement on the matter.
7 Mr. Durkan asked the Minister for Tourism and Trade the proposals, if any, he has to improve the market penetration of Irish goods within the EC, the US, or elsewhere; if he expects improved sales to these locations to have an impact on job creation; and if he will make a statement on the matter.
I propose to take Questions Nos. 3 and 7 together.
As the Deputy knows, An Bord Tráchtála offers a comprehensive service to Irish industry in the areas of export promotion and marketing, and details of this and other related An Bord Tráchtála activities can be gleaned from the recently published An Bord Tráchtála Annual Review and Outlook. I intend to confine my reply to new initiatives which have been recently put in place.
As a country, we need to look more and more to indigenous industry to provide the engine for sustainable growth, and this is particularly true in regard to growth in international markets. It is, therefore, in this direction that the attention and efforts of both my Department and An Bord Tráchála will be firmly focused in the coming years. Our mutual target is to increase indigenous exports by 50 per cent by the end of 1996, from the current IR£3.7 billion to IR£5.5 billion.
To achieve this target, we will need to do many things, but first we must improve the level of our activity in international markets and our competence in selling there. This requires a greater promotional spend and, to meet this, An Bord Tráchtála will this year receive £37.828 million in Exchequer grant-in-aid, an increase of 11 per cent on the 1992 outturn and over 80 per cent higher than the 1988 figure. Given the many constraints and pressures on Exchequer spending at present, this represents a major commitment on the Government's behalf to supporting the efforts of Irish companies abroad.
With the creation of the new Department of Tourism and Trade, a fresh impetus is also being given to the pursuit of a more effective co-ordination of Ireland's economic interests in overseas markets. I have launched a consultancy study to make recommendations to me, in two to three months time, on what should be done to improve our effectiveness in selling our country, our services and our mechandise abroad. I will consider these recommendations and formulate proposals for Government to introduce change wherever it is needed.
Furthermore, to assist Irish companies to compete in Europe, I have established a single market unit in my Department to provide the necessary co-ordination and problem-solving functions to ensure that the concerns of Irish business and industry are fully met.
On 1 March this year, I also announced the setting-up of the EUROPLACE Programme, which is intended to increase full-time salespeople in Europe from 60 to 150 in three years. The objective is that Irish companies will develop a permanent presence in the marketplace. An Bord Tráchtála has estimated that each new salesperson will generate in the region of IR£3 million per annum in extra sales. I have also initiated a customer support scheme, which will place back-up customer support staff in companies which do significant business with European customers. It is planned to place people in 150 companies over three years at a total cost of IR£1.5 million, of which An Bord Tráchtála will contribute up to IR£600,000.
I also want to help small firms who are trying to make their first breakthrough into the European market. With this in mind, I have asked An Bord Tráchtála to fund up to ten group marketing schemes representing 50 exporters over the next three years. It will co-finance market-based agents which represent a number of companies. The total cost of this scheme over the three years will be IR£1.4 million, of which An Bord Tráchtála will contribute up to IR£500,000.
On the promotional front, I will support An Bord Tráchtála in its biggest ever promotional programme, involving 120 major sales generating initiatives in which more than 1,300 Irish exporters will participate and which will include a strong Irish presence at leading trade fairs, trade missions, buyer trips to Ireland and programmes for first-time exporters. For the first time, Ireland will have a stand at the China Aviation Fair in Beijing. There will be trade missions to Eastern Europe, the CIS, the Asia-Pacific area, Saudi Arabia and Mexico. In relation to the US market, over 70 Irish companies, North and South, will take part in a major promotional drive termed "The Look is Ireland" in Chicago in June.
A very important element of our export promotion policy in the coming years will be the EC's Structural Funds contribution to our marketing programmes. Officials in my Department and An Bord Tráchtála are currently working on a fresh and innovative marketing programme in order to maintain a high level of Structural Funds support for our marketing initiatives abroad in the period 1994-99.
I am confident that all these measures and initiatives will further boost export growth, particularly in the indigenous sector, and will continue to contribute significantly to employment here.
With regard to the question of An Bord Tráchtála's responsibilities in relation to other Departments, it will continue, in accordance with section 6 of the Trade and Marketing Promotion Act, 1991, to assist, wherever necessary and-or appropriate, the export efforts of any sector which is the responsibility of any other Minister.
Before Deputy Cullen intervenes, I wish to say that if the remaining questions are to be disposed of they would want to be responded to almost immediately. I can only depend on Deputies' sense of fair play and equity in such matters.
I am only rising to speak, a Cheann Comhairle.
I appreciate that, Deputy.
I thank the Minister for his long and very detailed answer in some respects. The Minister said that he intended to increase indigenous exports by 50 per cent by 1996. Has the Minister targeted particular industries from which that growth should come? Is the growth expected to come from obvious sectors, and, if so, will the Minister say which industries are involved? I should also like to know where it is expected the growth markets will be. Is the 50 per cent increase targeted within the European Single Market or is a much broader market front targeted? In the context of drafting legislation arising from the Culliton report, what are the responsibilities of An Bord Tráchtála to other Departments? Are all the people sent to Europe skilled in foreign languages? It seems important that those who take part in the sales placement programme are skilled in the language of the country to which they are sent.
Question No. 4, tabled by Deputy Deenihan, relates to An Bord Tráchtála, so I shall deal with that aspect when we come to it. The Deputy asked about the projected increase from £3.7 billion to £5.5 billion by 1996. Markets and products will be targeted for growth by An Bord Tráchtála and there will be plans for the coming years for each of the markets and products concerned. Each year An Bord Tráchtála works out particular programmes and the board is confident that the projected figure can be attained by 1996. Deputy Cullen also asked about foreign languages. An Bord Tráchtála will assist firms with regard to the Europlace programme and, naturally, proficiency in speaking a foreign language will be taken into account when someone is posted overseas. The choosing of individual salespeople is a matter for the customer concerned and An Bord Tráchtála. The business concerned would choose the most able applicant and I am sure that matters such as proficiency in language would be considered. I recognise that the lack of language training is often a problem for salespeople abroad and anyone in business takes cognisance of that.
I shall allow other Deputies' questions to be taken.
The Deputy will allow what?
It is not my fault that the Minister's reply was so long. I am trying to be accommodating.
It is evidently clear to the House that the time for dealing with these questions is exhausted. Nevertheless, if I have an assurance that Questions Nos. 4 and 5 are responded to now and that there will be only one brief supplementary question in each case I shall allow those questions.
