I am conscious of the concerns of certain sectors of Irish industry about the impact of the recent movements of sterling against the Irish pound, which are due to the weakness of sterling. These exchange rate movements have taken place despite the different evolution of interest rates here compared with the UK over the past two years or so, such that Irish interbank rates are now about half a per cent below corresponding UK rates.
In practice, however, the impact of such movements of the Irish pound against sterling is complex and not all one-sided. While companies exporting to the United Kingdom can face a more difficult trading situation when sterling weakens against the Irish pound, companies also pay less for any inputs imported from the United Kingdom.
It is difficult to assess accurately the impact of particular currency movements on Irish companies because, inter alia, of the different currencies in which companies make and receive payments for their mix of inputs and outputs. My Department does of course monitor economic trends, including currency movements and trade trends, on an ongoing basis.
I have no plans to introduce measures to aid exporters to the United Kingdom. The responsibility for protecting companies against currency fluctuations lies primarily with the companies themselves. In addition, any such measures would involve a significant commitment of funds when the Government has set itself a tight ceiling for expenditure.