Not really. As I said the target in the five months from January to May and including May's figures, has shown an increase of 22 per cent, which is consistent with CTT's forecast for the five-month period. You will have dips, considerable increases and maybe variations from month to month, but over the five-month-period they are on target.
The Senator made another point. CTT are not fully responsible for all our exports. There are other people, not that many, but quite a number are exporting who do not use the services of CTT. He also mentioned multi-nationals, I can assure him that many multi-national organisations operating here are becoming more aware of the services available through CTT. To my own knowledge they are using the services more and more and I am delighted to see this.
CTT in their promotional programme could not be as successful as they are unless our industrialists were producing products of high quality, proper design and standards. Our industrialists, workers and CTT deserve credit for the export performance we have seen for some time past—from £130 million in 1959 to £3,498 million in 1979.
The Senator also made a point about the report which I am informed will be issued in August. Senator Staunton referred to percentage growth and the fact that there had been a decrease year by year. One must look at the base from which one is working. For example, in 1978 exports were £2,700 million, in 1979 they were £3,500 million, in 1980 they were £4,200 million. It is very difficult to keep up high percentages when one is dealing with an ever-increasing base. I agree fully, and I would like to emphasise that CTT and our exporters are facing extremely difficult world conditions. The fact that they are so successful is a tremendous tribute to CTT and to our exporters generally.
Senator Conroy in his contribution, for which I am very grateful, mentioned co-operation between CTT and our embassies. This was also mentioned by Senator McDonald. I can assure Senators that there is total co-operation between CTT and the embassies. When Deputy O'Kennedy was appointed Minister for Foreign Affairs in July 1977 one of his first tasks was to emphasise that our embassies were not just flag wavers but that they were to be involved in trade. In many areas where we do not have CTT offices our embassies have trade consuls. In some cases the trade consul is a CTT official. For political reasons, the organisation of embassies within Moscow was such that a trade consul was appointed rather than CTT opening an office there. The same happened in Nigeria and Poland.
Senator Mulcahy mentioned the sales executive scheme. This is a pet subject of his and of mine. I am delighted to be able to tell him that the first course for executives described as a European language and export marketing training programme was held in the College of Marketing and Design, Parnell Square. It went on for six months and the first 15 students came out only last Friday. It was an intensive German and French course. Eight weeks were spent studying sales and export documentation, EEC regulations, selection of agents and so on. There were four weeks of in-company training with Irish exporting agents. Then, there was a two-week visit to France to take in on-the-ground experience. Depending on the placement of these people, this course will be continued in future. I am delighted to be able to say it has worked out and I am hoping that it will continue to be successful. Senator Mulcahy and other Senators spoke about an aggressive export effort. If Senators study the export promotion programme of 1980 as published by CTT they will see a full and aggressive programme of activity for 1980. Senator Mulcahy also mentioned our export credit guarantee scheme and compared it with that of the United Kingdom. Senators will recall that last year I introduced a Bill to assist the building industry in their export efforts. There was considerable criticism from the building industry that the insurance industry were not fully supportive of the building industry's efforts in export work. The Bill was introduced to close that loophole, by giving facilities to the banks in this country to provide the type of guarantee required. That met one of the great complaints being made by our exporters about our export efforts.
As far as the difference between the British ECG scheme and our scheme is concerned, CTT carried out a survey on behalf of the Department to find out exactly what difficulties were being put in the way of our exporters and our export efforts through any lack that there might be in our own credit insurance schemes. The results of that survey showed that few of our exporters felt the need for an expansion up to the ECGD level. I accept the point made that there is considerable selling through UK offices. This unfortunately is one of the problems of the structure of our industry, which is to a large extent multi-nationally owned. They have their marketing and, to a great extent, their research and development based outside Ireland. We are, through the IDA and also with CTT, encouraging greater placing of sales forces operating from Ireland rather from their home parent companies of the multi-nationals. As the years go by, there will be greater marketing from the Irish companies than through the parent organisations.
Senator McDonald mentioned the importance of small industries and the importance their contributions could make to our export efforts. This has been fully recognised by CTT. To get to the small industrialists based around the country this year CTT decided to open three offices—to move away from the central office in Merrion Hall and to open regional offices. Offices will be opened in Cork, Limerick and Sligo this year. CTT want to get out into the field and meet the small industrialist engaged in his first venture into the export market who might be nervous, or who might feel some reluctance to travel to Dublin because a visit to Merrion Hall might appear to be too impersonal. What we are doing now is that we are getting to the small industrialists in the field—in places like Cork, Limerick and Sligo—and in the future I hope there will be an expansion of that regionalisation.
Senator McDonald also mentioned the fact that there are small staffs in some of the CTT offices around the world. He mentioned in particular Germany and referred to the Berlin Fair. What happens in a fair, such as the Berlin Fair, is that the main work of designing the stand, the construction of the stand and so on, is done in Ireland. It is then transported out to Berlin, or to any other show involved. It is erected there. It is made of Irish materials. It is Irish designed. You do not need a large office staff on the spot to organise it, because it is all done by a very specialised section of CTT in Ireland. I accept the point that if resources were available there could be extra people in the field. However, I can assure the Senator that the effort in Germany in particular has been highly successful from an Irish point of view since we became members of the European Community, and I hope it expands further in the years ahead.
Senator McDonald also mentioned the need for export promotion tours. I can assure him that the Minister for Industry, Commerce and Tourism and I have been very involved in leading export promotion tours throughout the world. I visited various parts of Europe on a number of occasions, Japan twice, Korea, America and Africa. This trade mission concept is one arm of an overall package of promotional work done by CTT, but it is an important arm. It is something that will be continuing in this year. The Minister has already undertaken a number of visits, and there will be further trade missions later in the autumn and I will have the honour of leading three of them.
Senator McDonald also referred to the grant-in-aid. Even in this year of budgetary constraints in most sections of Government services, the grant-in-aid for CTT was increased this year from £6.09 million to £7.95 million, an increase of about 30 per cent.
Senator McDonald mentioned one particular company and his visit to Abidjan and the fact that he succeeded in securing a supply of a particular product in a night club. Knowing the promotional campaign run by that company on that continent I am surprised that a product like Guinness was not available in a night club of all places, but I am delighted to hear he was successful in securing a barrel for himself.
I am also very grateful to Senator McGowan for the warm welcome he gave the Bill and the points he made. Senator Whitaker referred to the need for exports and an export effort. I can only endorse what he says: two out of every three jobs in manufacturing industry in this country at the moment depend on exports. That gives the House an idea of how important our export drive is. I can assure Senators that everything that can be done to assist CTT, our industrialists and our exporters will be done. I agree with what the Senator said about the change in trading patterns throughout the world and the need for high technology products to be exported from Ireland and Europe generally. In the years ahead some of the older traditional products will be manufactured in what we now refer to as the Third World. This is reflected in the IDA's present programme. They are putting great emphasis on new technologies, the electronics industry and the health care industry. Of new jobs coming into the country and being approved by the IDA for grant assistance, the whole emphasis is on high technology, because that is where the future of this country lies where we, as a Government, are going, where the IDA are going and where CTT are also going.
Senator FitzGerald referred to the effects of the depreciation of sterling on Irish exporters and exactly what has happened there. Membership of the EMS and the subsequent divergence in value between the Irish pound and sterling presented Irish exporters both with problems and opportunities. The situation now is that all export transations are in foreign exchange, including those in the United Kingdom. For marketing reasons quoting in the currency of foreign customers has a number of attractions both for the customer and the exporter. First, the customer is not faced by a continually fluctuating final price which is directly responsive to exchange rate changes and, secondly, for Irish exporters to the United Kingdom there is a unique advantage arising from the absence of UK foreign exchange controls on their purchases from Irish suppliers. This reinforces the benefit we have enjoyed in the UK market to date of not being considered a foreign supplier.
CTT have discussed with a number of exporting firms and financial institutions the best means of both exploiting export opportunities when faced with currency movements in all markets and ensuring that firms take appropriate steps to protect their interests in all foreign markets. As a consequence of these discussions, CTT brought three services to the attention of exporters and we are using these now—the quotation advice, overseas customer visits to Ireland and advisory services. These are all available now to potential exporters.
In conclusion, I would like to thank Senators for their welcome to this Second Stage, for the interest they have shown in the debate and, once again, to assure them that I will pass on to the board and staff of CTT the warm feeling expressed for their efforts in this House.