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Dáil Éireann debate -
Wednesday, 6 Nov 1996

Vol. 471 No. 2

Céisteanna—Questions. Oral Answers. - North-South Trade.

Bertie Ahern

Question:

2 Mr. B. Ahern asked the Taoiseach the level to which North/South trade has grown since August 1994. [20332/96]

Between 1994 and 1995 imports increased from £536.8 million to £640.4 million and exports increased from £721.9 million to £791.4 million.

The most recent information relates to May of this year. Comparing the period January to May 1996 with the corresponding period in 1995, imports increased from £244.6 million to £272.1 million and exports increased from £309.5 million to £333.5 million.

Did North-South trade grow more quickly since the ceasefire? Is there any evidence of a slowdown in trade since the ending of the ceasefire in the spring?

There does not seem to be. In terms of exports versus imports, there appears to be a positive balance in favour of exports. There does not appear to be a slowdown in the pattern of trade as a result of what, I hope, will be only a temporary breakdown of the ceasefire. The momentum appears to have been maintained. As the Deputy will note, the January to May figures corresponds very favourably with the 1994-5 January to May figures.

I am glad to hear there was not any significant change in trade because there was a good deal of talk of a slowdown in trade at the time of the Drumcree incident and following the sporadic boycotts that took place in the mid-summer. Is the Minister of State aware that from January to May of this year imports from the North have been growing twice as rapidly as imports from Great Britain, but our exports to the North are growing less quickly than those to Great Britain? Based on the official statistics, will the Minister of State indicate why that might be the case?

Imports increased from £536.8 million in 1994 to £640.4 million in 1995, reflecting an increase of £103.6 million. Exports increased from £721.9 million in 1994 to £791.4 million in 1995, reflecting an increase of £69.5 million. There is still a positive balance, but I agree with the Deputy the gap is narrowing. We do not have an explanation for it. There are equal opportunities for exporters in the South and for exporters in the North. As the playing pitch has been levelled I cannot understand why those opportunities and challenges are not taken up.

I raised the question, but the Minister of State cannot do anything about the answer. It seems extraordinary in a period of five months when matters were not too bad from a security point of view that imports from the North were growing twice as rapidly as imports from the UK, but we were getting no corresponding benefit on the southern side. My question would perhaps be better directed to those in the business community. We argued that great benefits could be gained from North-South trade. For the first period for which I have seen figures, that does not appear to be happening. Our business community should reflect on these figures and come up with some answers. I am sure the Minister will check the figures for the full year. There is a major distortion in the trade figures. I do not dispute that. The trade figures are to the credit of businesses in the North. Our business people should consider this matter.

I agree that the challenge appears to have been willingly taken up by northern business people in that they appear to recognise there are not any frontiers, tariff barriers, that there is open access to trade and we all share the same island. Northern business people appear to have responded more positively to the opportunities and openings in the market. I hope that our business sector and Departments will consider what can be done to stimulate our business people to have a greater realisation of the opportunities in Northern Ireland as a potential export market.

There is a perception, particularly in Border areas, since March when the BSE controls were put in place there that there has been a major disincentive for North-South trade, particularly in areas close to the Border. Has the Minister of State figures which would show whether growth in North-South trade has been stunted as a result of the fairly dramatic setting up of Border checkpoints?

As regards the five months period during which there was an escalation in the BSE crisis, I do not have the figures for that period but I can give the figures up to May — there was consciousness of the BSE crisis and the pattern has been maintained. For example, imports for the period January to May 1994 from the North to the South amounted to £209 million and for January to May 1995 the figure had increased to £244 million, a 16.8 per cent increase on the previous year. For the period January to May 1996 there was a further increase of 11.2 per cent, to £272 million. On the export side, for the period January to May 1995 the figure was £309 million, an increase on the previous January-May period of 8.6 per cent. For the period January to May 1996 the figure was £333 million, an increase of 7.8 per cent.

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