Dáil Éireann debate -
Tuesday, 25 Mar 2003

Vol. 563 No. 4

Written Answers - Foreign Conflicts.

Brendan Howlin

Question:

139 Mr. Howlin asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department has undertaken an assessment of the implications for foreign investment, job creation and trade in case of a war with Iraq; and if she will make a statement on the matter. [8111/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I regret that war in Iraq has now begun. I hope the conflict can be brought to an early end and that the inherent human suffering can be minimised.

No formal assessment of the impact of the war on Ireland has been completed, but my Department and the enterprise development agencies are assessing developments as they unfold with a view to taking any action that can help to mini mise adverse consequences. There is agreement among all observers that no general conclusion can be reached at this time as to the impact of the conflict. Much will depend on its duration, and on the effect of the outcome on factors such as energy prices and confidence in the security climate. I am informed by the IDA that, following discussions with overseas companies, it does not expect any immediate negative effect on its client portfolio in terms of investment projects or employment – of course, the uncertainty of recent times has already for some time been a dampening factor on investment decisions and consumer confidence. In relation to the longer term, IDA points out that the 1991 Gulf War did not result in a decrease in the number of companies or total employment in its portfolio.

The situation is being monitored and any practical measures that are feasible are being taken. For example, IDA has issued a circular to project executives instructing them to remind companies of the existence of the air cargo security programme, ASCP, introduced by the Government in 2002. This programme grants known consignor status to the air cargo of companies with the required security systems, thus reducing delays in the processing of international air cargo – an important consideration for companies with global supply chains and distant customers requiring just-in-time delivery.