Noel Dempsey
Question:14 Mr. Dempsey asked the Minister for Tourism and Trade the calculations, if any, made by his Department on the effects on Irish exports of the high value of the punt against sterling. [7420/96]
Ceisteanna—Questions. Oral Answers. - Currency Difficulties.
The degree to which accurate calculations can be made at any time of the effects on Irish exports of variations in the value of the punt against sterling is very much circumscribed by other factors influencing performance by individual firms, such as raw materials sourcing, use of sophisticated financial instruments like hedging, overall supply in the market and competition from other producers for individual products and ability to diversify into more lucrative markets.
At the end of last year An Bord Tráchtála carried out a survey of indigenous firms exporting to Britain. It indicated that a small number of firms with exceptionally high UK market dependency were experiencing difficulties, particularly in the depressed consumer and construction sectors. The board established a special task force in the UK market consisting of marketing specialists which is focusing on exporters experiencing particular difficulties and which have limited scope for diversifying out of Britain.
Can the Minister explain the nature of the difficulties being experienced by these companies?
The firms involved were exporters which were not in a position, for a variety of reasons, to export outside Britain, to diversify into other elements of the British market or to Europe. I can supply the Deputy, in confidence, with information on the nature of the industries involved.
In addition to supplying that information on a confidential basis or openly, will the Minister say how many firms, if any, have gone to the wall arising from the disparity between the punt and sterling?
The number of firms which close down in any year for a variety of reasons is probably considerable. I cannot put a figure on the exact number of industries which have gone out of business specifically as a result of the currency fluctuations. ABT, in recognition of the small number of exporters to the British market experiencing severe difficulties, appointed a number of marketing experts to work with them so that they might trade out of these difficulties.
Surely some of the well paid gurus in these semi-State bodies can get the Minister that information? They seem to be able to get him other information except that required by the House.
These well paid gurus to which the Deputy referred are not reluctant to give this information. The staff of An Bord Tráchtála works very hard in the interests of the economy.
Nobody is suggesting otherwise.
The Minister referred to the initiative undertaken by An Bord Tráchtála. How successful has it been and have some of the companies previously in difficulty managed to make their way back into the market place? Have further companies got into difficulty since then? Has the Minister assessed the success of the initiative ABT has undertaken?
ABT is working with them on an ongoing basis. I do not have any information to the effect that any of them have gone out of business as a result of these difficulties, but they are receiving expert advice and assistance from the task force set up by ABT.
Is the Minister aware of any special difficulties being experienced by the timber milling industry as regards its exports to the UK market because of the change in the value of the punt versus sterling. What steps are being taken under the auspices of his Department to help?
Firms acutely affected by the exchange rate difficulties and which are not in a position to diversify into other areas of the market or more lucrative ones are being assisted by ABT. I am not aware of any particular difficulties in the industry the Deputy mentioned but if he wishes to supply me with information in that regard, I will follow it up.
I was interested to know if the Minister with special responsibilities in this area was aware of the difficulties, but he has indicated to the House that he is not.
That is not true. The Deputy asked about some element of the timber industry. The task force set up by ABT is working specifically with industries experiencing difficulties because of the exchange rate and which cannot diversify or change to more lucrative markets and is working very well.
The Minister repeated what he said earlier. I did not refer to any specific element of the industry but to the industry itself. The Minister must be aware that one of the major players in this industry is a State company — Coillte Teoranta. Is the Minister unaware of the difficulties these companies have experienced?
Coillte Teoranta is not the responsibility of this ministry but if we are in a position to assist it in any way, we will be happy to do so.
It exports.
It is part of Ireland Incorporated.
The Minister should stop waffling.
The Minister mentioned firms which could not diversify, which is the case with the mushroom and poultry industries located in my constituency. Departments could examine production methods, help exporters in this time of difficulty and tide them over until the currency problem stabilises.
As Deputy Leonard is well aware, this is a matter for An Bord Bia and the Department of Agriculture, Food and Forestry.