Vol. 429 No. 5
13 Mr. Gilmore asked the Minister for Tourism and Trade if, in regard to the statement in the Fianna Fáil and Labour Programme for a Partnership Government 1993 to 1997, specific proposals have been formulated to ensure that there will be sufficient numbers of highly motivated, language trained, sales people in export markets selling Irish goods and services; and if he will make a statement on the matter.
The Programme for a Partnership Government identified the lack of Irish salespeople abroad as a major constraint on the growth of our overseas sales. If companies are to pursue market-led strategies it is essential that they know their customer, his or her tastes, preferences, likes and dislikes. That is why, at the launch of An Bord Tráchtála's Review and Outlook on 1 March 1993, I announced the setting up of a new Europlace programme which will increase the number of full-time salespeople on the ground in continental Europe from the current 60 to 150 in three years; that is an average of 30 companies each year. The scheme will have a significant long term benefit because it will help companies to root themselves in the marketplace and be more responsive to future changes. I would like to make the point that this is an intensive targeted programme; which will be aimed initially at firms which already have significant sales in continental markets.
The question of the language has been raised many times. We can see in a practical sense that the lack of language skills hinders our progress in export markets. Will the Minister agree that the programme managers and others have a role to play in bringing pressure to bear on his colleagues in the Department of Education to look at the teaching of foreign languages at primary level? Will he further agree that this is a fundamental means of improving language skills instead of starting at second and third level? Does he also agree it is important that we get this right as Europe becomes more and more integrated?
It is a matter primarily for the Minister for Education. As the Minister for Tourism and Trade I hope that people, especially those going into marketing, will have better language skills. The evidence in the past number of years is that people who specialise in marketing have language skills. I have found also that English is the most commonly spoken language in business and the fact that we use English is a great advantage. English appears to be becoming more and more prevalent as the language of business throughout the world.
Is the Minister aware of the view held by sections of industry trying to penetrate export markets that they would rather entrust the job of trying to win new markets abroad to the local network, in other words if they are trying to sell to Italy or Germany, they like to recruit Italians or Germans to sell into those markets? Does he give credence to that viewpoint?
One of the weaknesses of Irish exporting is that very few companies have people abroad selling directly for them. Deputy Rabbitte is correct in that many Irish companies who sell abroad use the agents of that country to sell their products. Companies who sell on an agency basis rather than by way of a direct marketing programme find this system very satisfactory. In general agents use different methods of operating and their interests may not always be in line with the interests of the supplier back home. The new Europlace programme was put in place to ensure that there are full-time sales people abroad to promote Irish products.
Small companies, when they initially break into a foreign market, usually operate by way of an agent. The Europlace programme will ensure that, as these companies grow, the number of direct sales people abroad will be increased. One of the weaknesses of Irish businesses selling abroad is that they rely on agents of the country in which they are selling, which is not always to the betterment of the product at home. It is envisaged that the Europlace programme, which I announced on 1 March, will result in an increase in the number of Irish agents selling abroad. What amazes me is that, as a trading nation depending on exports for our lifeblood, we have 60 sales people only selling abroad. We hope to increase that number to 150 in the next two years.
While it is desirable that marketing specialists have expertise in languages, will the Minister say in relation to constraints on the education system, particularly as it relates to the French and German languages, whether difficulties are experienced in certain countries due to lack of knowledge of fogeign languages? I agree with the Minister that English is the common language in most countries. Surely the Minister is aware that German companies who set up in this country expect their chief executive to speak fluent German? In those circumstances it is vital to have a knowledge of foreign languages. Are problems experienced in regard to any particular language?
I have no evidence to that effect. In conjunction with the Europlace programme there is also a customer support scheme which enables Irish companies at home to take on language graduates. Irish companies breaking into foreign markets experience great difficulties with foreign languages and therefore it is important that they have expertise in that area at home. I have no evidence of difficulties in any particular market due to lack of knowledge of foreign languages. Young people who wish to pursue a career in marketing should ensure they have language skills. In reply to Deputy Cullen's point, I suggested that, as English is the main spoken language in business, this problem is not as great as people might think. When operating in any area, whether it be in business, farming or even when looking for votes, it is always an advantage to speak the punters' language.
Are there incentives to encourage medium-sized companies to employ people with marketing expertise and language skills?
Yes. I referred earlier to the various schemes announced since I came to this Department, including the Europlace and the customer support scheme. These schemes, which are grant-aided by Bord Tráchtála, enable companies to employ sales people, particularly graduates with language skills.
May I ask the Minister if it is a condition of employment in An Bord Tráchtála that applicants must have mastery in a foreign language? Does the Minister agree it is essential that people who provide tourist information — for example, tourist guides — have a mastery of foreign languages?
An Bord Tráchtála, who advertise at various times, set out the criteria under which they employ people. As regards the grant-aided schemes operated by An Bord Tráchtála, it is the individual industry that decides on the person they wish to employ and the language skills required. An Bord Tráchtála grant-aids the company provided it qualifies under the rules laid down. Bord Fáilte, when assessing people for posts abroad, take into account whether the person is skilled in the language of the country in which they will be working.
