Dáil Éireann debate -
Tuesday, 10 Oct 1995

Vol. 456 No. 6

Written Answers. - Trade Balance with Northern Ireland.

Desmond J. O'Malley

Question:

49 Mr. O'Malley asked the Minister for Enterprise and Employment if the rapid decrease in our trade surplus figures with Northern Ireland is set to continue now that the Northern Ireland industrial economy is starting to reap a peace dividend; the implications, if any, for employment in this part of the island; and if he will make a statement on the matter. [14446/95]

Minister for Enterprise and Employment (Mr. R. Bruton)

According to CSO figures, the trade surplus with Northern Ireland fell from over £298 million in 1993 to over £186 million in 1994. As to the reason for this fall, I would refer the Deputy to a reply given by my colleague, the Minister for Tourism and Trade on 5 October 1995 in which it was stated that it seems clear that for the past 25 years, economic development in the North has been inhibited by the situation obtaining there. As the North attempts to develop its exporting sector, their exports in the short term will tend to rise at a faster pace than our own. As my colleague commented, this is to be welcomed because as the economy of Northern Ireland benefits, the economy of the island of Ireland as a whole will benefit. In the same reply the Minister, Deputy Kenny gave details of the initiatives being pursued by An Bord Tráchtálá to assist Irish companies in taking advantage of the increased opportunities which the improved economic environment in the North should bring.

On the implications for employment arising from the change in the trade balance, it is too early to say at this stage whether this is having a specific impact on companies in the South. However, I understand that the Department of Tourism and Trade is monitoring the situation on an ongoing basis. I would also add that there is no definitive implication that increased exports to this country from Northern Ireland are displacing Irish made goods.