Michael Smith
Question:13 Mr. M. Smith asked the Minister for Tourism and Trade if he will make a statement on trade policy in view of the current situation between the Irish pound and sterling. [9248/97]
Written Answers. - Currency Differentials.
John O'Donoghue
Question:32 Mr. O'Donoghue asked the Minister for Tourism and Trade his views on how his Department can assist sterling-dependent companies in view of the fact that public spending has not kept in line with inflation; and if he will make a statement on the matter. [9245/97]
I propose to take Questions Nos. 13 and 32 together.
The Irish pound is currently trading at under 96p sterling, its lowest level for over three years, reflecting a recent resurgence in the British currency. There has also been a strong recovery in the UK economy, which is now forecast to grow by 3.3 per cent in 1997, out-performing the other major European economies.
CSO figures for exports to Britain for the period January-October 1996 indicate an increase of 4.5 per cent and An Bord Tráchtála has a range of support measures in place to assist Irish indigenous firms in particular to avail of the emerging opportunities in this market in the current year.
We must, of course, remember that exchange rates have always been, and will continue to be, a factor in international trade, especially in the case of a small open economy such as ours. This is a core reason the Government is so committed to becoming a founder member of European Monetary Union, in order to stabilise our long-term economic growth and minimise such problems in the future.
Another plank of trade policy which is relevant to Irish firms currently in the British market is the focus on continued diversification into other proximate markets in continental Europe. I have set An Bord Tráchtála specific targets in relation to this, so that we may increase the proportion of our non-food indigenous exports going to continental European markets.
In order to achieve this, ABT have developed a programme called "Opportunity Europe". This programme is a marketing initiative designed by ABT specifically to assist exporters to commit themselves fully to developing the enormous business potential of the expanding continental European market. ABT has set a target of trebling non-food indigenous exports to Europe by 2001. Exports to Europe currently account for 32 per cent of all indigenous exports. The programme was designed after consultation with industry and the board has allocated a budget of £10 million in 1997 to the Opportunity Europe programme.
The Government is committed to the pursuit of policies which promote and improve Ireland's competitiveness in our main markets and as a result of such policies, Ireland, and its exporters currently enjoy an excellent economic environment, with interest rates and inflation at historically low levels.
John O'Donoghue
Question:14 Mr. O'Donoghue asked the Minister for Tourism and Trade if he will introduce a policy on national trade which will be coherent and integrated; and if he will make a statement on the matter. [9244/97]
As stated in Partnership 2000, it is the Government's intention to publish a statement of national trade policy. My Department is currently working on that statement. It is hoped, after due consultation to ensure that it represents a coherent and integrated approach, to publish the statement before the end of this year. Among those consulted will be the trade advisory forum which is representative of relevant Departments, State agencies, organisations representing the exporting sector, and exporters themselves.