Martin Cullen
Question:11 Mr. Cullen asked the Minister for Tourism and Trade the action, if any, he has taken in 1997 to help exporters cope with current difficulties; and if he will make a statement on the matter. [9262/97]
Other Questions. - Export-Marketing Difficulties.
Noel Treacy
Question:28 Mr. N. Treacy asked the Minister for Tourism and Trade if he has sought EU approval for a scheme to assist Irish exporters through the current difficulties; and if he will make a statement on the matter. [9263/97]
I propose to take Questions Nos. 11 and 28 together.
A number of issues facing exporters are being addressed in the marketing subprogramme of the Industry Operational Programme, ranging from preparing for and responding to global competition with the resultant requirement to strengthen exporters' marketing capabilities to allow them enter and develop markets. There is also the issue of market diversification as we prepare for economic and monetary union.
Primarily, because we are a small open economy, we are exposed to currency fluctuations, a feature of normal international trading life and the main reason the Government is so committed to becoming a founder member of economic and monetary union to secure our long-term economic growth and minimise such problems in future.
I understand that An Bord Tráchtála has established a special task force to work with companies experiencing difficulties with the punt's appreciation against the deutschmark and the French franc. The task force will work on a basis similar to that of the sterling task force which assisted companies in difficulty in the United Kingdom market last year. In the short-term firms can guard against currency fluctuations by hedging and other devices but, in the long-term, the only answer is to be as flexible and competitive as possible. An Bord Tráchtála is currently helping Irish exporters in the French and German markets to emphasise non-price factors such as quality, design etc., and ensure proper treasury and exchange risk management, etc.
In addition, An Bord Tráchtála is already providing very substantial support to firms exporting to continental Europe as part of their ongoing "Opportunity Europe" programme under a range of marketing support initiatives. Assistance to exporters under this programme — with a strong emphasis on encouraging companies to diversify into new markets — is currently estimated to cost £10 million this year.
Finally, while efforts are being made to assist affected companies, financial compensation to exporters for currency risk is not under consideration. It would be unacceptable to the European Union that we introduce schemes specifically to compensate for currency fluctuations. We must accept that exchange rate problems always have been, and will continue to be, a factor in international trade.