Vol. 463 No. 8
15 Mr. M. McDowell asked the Minister for Tourism and Trade the percentage of the growth in merchandise exports in 1995 that was due to the activities of foreign owned companies; and if he will make a statement on the matter. [7500/96]
49 Ms O'Donnell asked the Minister for Tourism and Trade the percentage of the growth in merchandise exports in 1995 that was due to the activities of foreign companies; and if he will make a statement on the matter. [7498/96]
I propose to take Questions Nos. 15 and 49 together.
Official trade statistics from the Central Statistics Office do not distinguish between exports from foreign-owned and Irish-owned firms. Latest available figures for 1995 relate to the first three quarters which show total merchandise exports were valued at £19,764 million of which we would estimate foreign-owned companies could account for in the region of 65 per cent.
The non-food indigenous sector, which is the principal focus of An Bord Tráchtála's promotion effort, accounted for £2,872 million of this figure according to a survey carried out on their behalf by the ESRI.
Responsibility for Irish food exports rests with An Bord Bia which operates under the aegis of the Minister for Agriculture, Food and Forestry.
Do I take it from what the Minister said that 65 per cent of the non food exports were manufactured by foreign-owned companies?
We estimate that foreign-owned companies would have accounted for 65 per cent of the total merchandise exports valued at £19,764 million.
Would the Minister draw any conclusions from that having regard to the tax incentive for foreign manufacturers exporting, the favourable tax regime for foreign companies located here and the way in which they can invoice their goods and static level of exports from Irish manufacturers because of the higher tax regime which applies to them and the fact they do not have access to the invoicing facilities of foreign owned companies to maximise on the tax regime? A lower tax regime would increase exports.
One could put forward that option, but a central plank of Government is to keep inflation and interest rates down and to maintain a good business environment.
And keep taxes up.
A Government must have a tax take and the Minister for Finance and the Government will decide on that.
It does not need to have a high one.
Deputies have asked for the percentage of the growth in merchandise export which is due to foreign-owned companies. Estimates are not available on a specific breakdown as between foreign and Irish owned companies, as I have pointed out to Deputy Molloy. The question of a tax regime for attracting foreign industries and for the creation of indigenous Irish industries is a matter of concern to us all and one for consideration by Government in due course.
Will the Minister agree that the time has come when the statistics should be kept in such a way that one can easily distinguish exports from foreign owned companies and exports from Irish-owned companies in order to know what is happening in that area? We are making a huge investment in the foreign-owned industries by way of grants and tax concessions.
ABT monitors the performance of indigenous exports on a quarterly basis with the telephone survey of about 1,050 companies. Indigenous industry is defined as a group of firms who trade in and from the Irish market and have management functions, marketing, production and finance, established or located in Ireland. I am not sure of the mechanics of obtaining a breakdown of those statistics. It is a question I will raise with the Central Statistics Office to see whether that type of information could be available on an ongoing basis.
