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Dáil Éireann debate -
Thursday, 5 Oct 1995

Vol. 456 No. 5

Ceisteanna—Questions. Oral Answers. - Cross-Border Trade.

Peadar Clohessy

Question:

3 Mr. Clohessy asked the Minister for Tourism and Trade if his attention has been drawn to recent reports that most of the growth in North-South trade on this island was resulting from increased sales of Northern Ireland goods in the Republic; the steps he is taking to achieve an increase of sales to Northern Ireland; and if he will make a statement on the matter. [14090/95]

David Andrews

Question:

30 Mr. Andrews asked the Minister for Tourism and Trade the positive impact the peace process has had on exports since the summer of 1995. [14032/95]

Liz O'Donnell

Question:

32 Ms O'Donnell asked the Minister for Tourism and Trade if his attention has been drawn to recent reports that most of the growth in North-South trade on this island was resulting from increased sales of Northern Ireland goods in the Republic; the steps he is taking to achieve an increase of sales to Northern Ireland; and if he will make a statement on the matter. [14091/95]

Ivor Callely

Question:

165 Mr. Callely asked the Minister for Tourism and Trade the benefits and increase in cross-Border trade since the cessation of violence and the start of the peace process; the likely further developments in this area; the difficulties which have been identified; and if he will make a statement on the matter. [14179/95]

I propose to take Questions Nos. 3, 30, 32 and 165 together.

In relation to Deputy Andrews's question on the increase in exports since the summer of 1995, I am presuming that he means the increase since the summer of 1994.

The latest trade figures available from the CSO are for March 1995. These figures show that the total value of trade between Northern Ireland and the Republic for the first quarter of this year was £322 million — this compares with £297 million for the same period in 1994 and represents an 8.5 per cent increase.

Any increase in the total volume of North-South trade is welcome, of course, in that it indicates that economic relations are rising to their natural level. It seems clear, however, that for the last 25 years, economic development in the North has been seriously inhibited by the situation obtaining there. As the North attempts to develop its exporting sector, its exports, in the short term, will tend to rise at a faster pace than our own. This is to be welcomed because, as the economy of Northern Ireland develops, the economy of the island of Ireland as a whole will benefit.

The high level of co-operation which already exists between State agencies on both sides of the Border has resulted in the development of exciting new initiatives, designed to assist companies throughout the island to take advantage of the new opportunities which are emerging on both sides of the Border since the cessation of violence. These initiatives include workshops, conferences and numerous publications aimed at encouraging companies which have neglected the market in the past to explore and develop its potential.

The recent ABT guide to the Northern Ireland market, "Opening the door to new profit", details the main areas of marketing opportunity within the North. This publication complements the 15 Market Opportunity reports produced earlier in the year which act as a guide to various market sectors in Ireland. The reports were created in response to the lack of basic market information, which was a serious impediment to trade development. They provide comprehensive data, including detailed listings of purchasers in the major industrial, public sector, consumer and tourist markets.

I am confident that ABT, with the co-operation of many representative bodies, will continue to build on the positive working relationships which they have established with their counterparts in Northern Ireland, to guarantee increased trade and a better economic climate throughout the whole island, North and South.

Is the Minister confirming the reports that Northern Ireland companies have been more successful in selling goods to the Republic than companies here have had selling to the North? Are they gaining greater advantage from the opportunities presented by the peace process? Is the Minister concerned that our traders are not as active in the northern market as they might be? I listened attentively to the Minister's reply in which he referred to certain steps being taken by An Bord Tráchtála to assist in this regard. Will the Minister quantify in volume terms the difference between the North-South, South-North trade flow in regard to the increases?

Deputy Molloy understands the context in which this occurs. Northern Ireland manufacturers did not actively export to this market; they tended to export to Britain and beyond. It is easier for Northern Ireland manufacturers, who export to a larger market, than manufacturers in the Twenty-Six Counties who have always exported to Northern Ireland, to increase sales dramatically with a population of 1.5 million. Exports to Northern Ireland increased from £82 million in 1973 to £712 million in 1994. Imports from Northern Ireland amounted to £43 million in 1973 and increased to £526 million in 1994.

The total trade North and South has increased, therefore, from £125 million in 1973 to £1.238 billion in 1994. The trade surplus from exports to Northern Ireland is £186 million based on last year's performance. ABT is conscious of this and a number of seminars, conferences and workshops have taken place, particularly in recent months. Last week, 80 companies attended a major seminar in Belfast on networking operations. Yesterday, a number of Northern Ireland publishers were endeavouring to sell their books to 80 or 90 major booksellers. During the International Trade Week, which I opened in ABTs headquarters some weeks ago, approximately 184 meetings took place with potential buyers from Northern Ireland. There was a great deal of activity to and for and that work will continue.

Did the Minister say that the trade surplus between North and South in 1994 was £186 million?

On the question of bureaucracy, it is important that brouchures are published by ABT and I believe many have been produced. Will the Minister give an indication on an analysis basis of the effectiveness of these publications?

I cannot do that yet but I launched a number of these brouchures which provide much valuable information for those involved in the manufacturing and exporting of a range of services. Some of those services are very specialist and the company directors to whom I have spoken have found the publications of great value. I cannot give the Deputy a comprehensive analysis of them yet because their effectiveness remains to be studied but I look forward to their bearing fruit in a big way.

Politics aside, will the Minister return to my original thesis which I will continue to pursue? I realise that "unity" is not a politically correct word at the moment in the context of this island but will the Minister consider drawing all the strands of trade together in a unified council as between North and South? I believe that is evolving somewhat on the tourism side but it should be considered also in respect of trade.

I agree with the Deputy. It is easier to evolve this in a tourism sense because the economic benefits are obvious to everyone. In 1994 ABT, in conjunction with the IDB in the North, organised series of trade events North and South designed to strengthen links between public sector buyers and their potential local suppliers. They have held a series of "meet the buyer" events which were strictly concentrated so that maximum opportunity was given to both buyers and suppliers. In December ABT, in partnership with the Government purchasing service of Northern Ireland, IBEC and the CBI, held a "meet the buyer" event at Stormont Castle at which 50 companies from the Republic met the buying teams of ten Northern Ireland public sector bodies. Since then a number of similar and successful "meet the buyer" conferences have been organised. I share the Deputy's view that it would be easier, at least for the moment, to evolve a single marketing entity from a tourism rather than a manufacturing and trade point of view. However, the close co-operation between ABT, the Northern Ireland board and LEDU is bearing fruit in an economic sense for everybody.

Are there any joint structures as between the two boards? Do they meet in conclave?

I am not sure that they meet in conclave but they certainly meet openly in the promotion of the facilities.

I am aware they meet privately and publicly.

There are continuing opportunities for manufacturers both North and South and we have said that publicly. I was interested to note recently that an internationally renowned carpet firm from Deputy Molloy's constituency won the tender to provide carpets for City Hall in Belfast. That obviously would not have happened a number of years ago.

They must have had a good look around this House.

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