Bernard J. Durkan
Question:84 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the new markets for exports which have been identified in the past 12 months; and if she will make a statement on the matter. [24725/03
Written Answers. - Export Markets.
Ireland exports to many markets and the Government's strategy is to create further market opportunities where they exist. The Government, through Enterprise Ireland, supports the growth of Irish exports by working with individual companies in identifying new product and market opportunities and seeking to capitalise on them. This has been a key priority over the past few years as international market conditions have deteriorated and the focus of exporters has been firmly on generating new sales leads and securing sales.
An important source of new market opportunities is the Enterprise Ireland overseas office network, which has an ongoing scanning role for new potential buyers and sectors. These are subsequently brought to the attention of Enterprise Ireland clients in Ireland and incorporated, as appropriate, in their development plans. In addition, the Enterprise Ireland annual business review surveys the sales and export markets of clients and specifically addresses the question of priority markets.
The key mechanism used by Enterprise Ireland in developing new market areas for clients is to broker meetings with significant international buyers, either through inward buyer missions or outward trade missions. In 2002, 2,220 such meetings were arranged with 340 client companies participating in 34 such trade missions.
Since the middle of September this year Enterprise Ireland has organised significant trade missions, led either by the President or a Minister, to the Middle East, Canada, China and Russia.
Further trade missions are planned for Finland, Italy, Germany and Scotland before the end of the year.
China is now one of the most sought after trading partners in the world and Enterprise Ireland is keen to build on and expand a pattern of growth in two-way trade between the two countries. An estimated 150 Irish companies are currently doing business in China and Hong Kong and many have well established partnerships and business alliances with local companies.
With increasing globalisation and the growth of e-business, in recent years the traditional export markets of Britain, western Europe and North America, while still accounting for the majority of Enterprise Ireland client exports, are now being joined by such diverse destinations as eastern Europe and Australasia. Interest in such distant markets has grown exponentially and Enterprise Ireland clients now export to more than 100 countries.
Last year, a very difficult one in terms of international trading conditions, a total of €1.3 billion in new export sales was generated by Enterprise Ireland clients. Over half were in the food sector, 30% in the broad industrial and consumer prod ucts sectors and 20% in software and international services. The UK accounted for 44%, Europe for 30%, the United States of America for 11% and Asia for 17% of these new sales.
Similar data for 2003 will be available and published on completion of the annual business review in early 2004. While the relative impact of initiatives and activities in developing new export markets is difficult to quantify, to assess how new export sales were generated and to provide a picture of the pattern of new markets and sectors emerging the following aspects are monitored by Enterprise Ireland on the basis that they are key drivers of export growth for clients.
|
Measure |
2003(end September) |
2002 |
|
Companies Exporting for the 1st time to new markets |
Total:99UK:25EUR:44US:10Asia:13 |
Total:136UK:44EUR:58US:9Asia25 |
|
Companies establishing a new sales office in new market |
Total:127UK:31EUR:55US:19Asia:25 |
Total:133UK:47EUR:44US:23Asia:19 |
|
Meetings brokered by EI between Clients and Int. Buyers i.e. sales leads generated by EI |
Total:6,384UK:916EUR:2,892US:1,254Asia:1,322 |
Total:8,982UK:576EUR:4,464US:1,483Asia:2,459 |
Bernard J. Durkan
Question:85 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has satisfied herself having regard to import and export figures in the past number of months that industry remains competitive and is soundly based for the future; if her attention has been drawn to factors requiring urgent attention in that regard; and if she will make a statement on the matter. [24728/03]
Exports from Ireland declined by 19% in the first six months of this year over the same period in 2002, and imports declined by 25%. There are a number of reasons for this decline. The global economic slowdown has had an impact on trade globally, notably on the technology sectors in which Ireland is a significant exporter. In addition, a number of export intensive companies based in Ireland have closed over the past 18 months. The rise in the value of the euro against the currencies of our two main trading partners, Britain and the USA, has also had an impact.
The Government recognises the importance of ensuring that Ireland remains competitive, as a guarantee to future economic success and to correctly position ourselves to take advantage of improvements in the global economy. The annual competitiveness report produced by the National Competitiveness Council, while confirming many of Ireland's strengths, highlighted the many challenges we face and the difficult choices we have to make in the present uncertain global economic environment. Strengthening competitiveness requires a number of actions and the Government is fully committed to taking these appropriate measures, as I have stated on previous occasions. Indeed the recent IMF report, Ireland: 2003 Article lV Consultation, commended the Irish authorities. It stated: "for their exemplary track record of sound economic policies, which have resulted in a dynamic, open and robust economy with growth notably above the EU average over the past decade and resilience to external shocks." Sustaining Progress has at its core the need to underpin Ireland's competitiveness. Its goal is to create a virtuous circle of low inflation, moderate wage growth and higher productivity, thereby providing a firm competitive business environment for Irish industry.
The Government continues to take steps to strengthen competitiveness across the economy and to implement specific measures to tackle cost pressures in key areas for Irish industry. One such area is insurance. As the Deputy will be aware, I am in the process of implementing a programme to fundamentally reform the insurance market to tackle the issue of high premia, which have had a detrimental effect both on consumers and business competitiveness. I am committed to continuing with the reform programme and bringing about improvements in the functioning of the insurance market.
The trend reduction in inflation, recorded at 2.9% last month, is encouraging but we cannot become complacent, especially in the light of lower levels in many of our EU partners and other competitors. A low inflation rate will stabilise firms' costs and result in a reduction of the cost burden on Irish industry. While a number of factors outside our control affect the inflation rate, we need to keep a focus on those elements which are within our control.
I have stated on several occasions that the principal and most sustainable method for reducing costs and maintaining them at an acceptable level is to increase competition in all sectors of the economy. We cannot afford to have sheltered sectors of the Irish economy immune from price competition. Competition in all sectors must be encouraged to ensure goods and services are provided at an efficient and affordable price. The powers and resources of the Competition Authority have been increased substantially to enable them to effectively tackle cartels and abuses of dominant position and to recommend regulatory reforms to improve competition in key markets.
Question No. 86 answered with Question No. 53.
Question No. 87 answered with Question No. 32.
Question No. 88 answered with Question No. 25.
Question No. 89 answered with Question No. 32.