I thank the Chair for giving me the opportunity to bring this motion on the Adjournment debate. Moves to promote the consumption of Irish products are familiar features of the political landscape. The question may be posed, why draw attention to this issue once more? The reply is that given an awareness of market conditions we would be failing in our duty as public representatives if we did not seek to assist domestic enterprise. Evidence from consumer groups and retail outlets indicate that the public are increasingly aware and well-informed of the quality and value of Irish goods in addition to the merits of supporting home industries. This situation is a tribute to the activities of various concerned groups.
I would like to compliment the Minister and his officials for the work done to date. While such developments are to be welcomed, it would be remiss of me if we ignored the fact that a substantial part of our potential for employment, growth and prosperity remains unfulfilled. Much attention has been paid to the completion of the European internal market. Yet while we concentrate on exploiting the opportunities presented by improved access to a market of 320 million people, our own manufacturers' share of the home market is unsatisfactory. At a time when Government and the social partners are engaged in a programme to revive the nation's fortunes, it is vital that the full potential of the domestic market be realised.
In the Christmas period some £600 million is expended according to research data. This expenditure covers a range of goods from foodstuffs to luxury consumer items. It has been calculated that should £1 be transferred from imports to an Irish product by each shopper up to 3,000 jobs could be created in home industries. The transfer of even a small amount by the individual and the positive contribution it could make helps to illustrate the purchasing power we possess. Currently Ireland has a very marginal propensity to import. Our producers have only a 43 per cent share of the domestic market. It is regrettable that we yet have to close the gap between this current share and that which was within our reach.
Despite the open nature of the economy, the task of effecting an improvement in this position is not beyond us. It is stated that one of the main results of the single market will be greater freedom of trade. For Ireland as a peripheral region of Europe this is a most positive development. As a committed European I welcome the fact that Irish entrepreneurs will gain access to markets which were difficult to penetrate previously. However, we would delude ourselves if we failed to take note of the fact that competition in the domestic market from imports will increase. It would be unfortunate if the Irish people had to rely upon enterprises outside the State to cater for their needs when home industry could produce the goods. Indeed, it is reasonable to contend that domestic manufacture would be more attuned to the preferences of our market than one based in another member state. With this in mind, efforts on the part of Irish industries, large and small, to meet the demands of the consumer ought to be encouraged.
The achievements of the domestic companies are a source of pride to us all. There was a time when an inferiority complex was detectable in relation to Irish ventures. However, they have transformed that and have shown that they can compete successfully at home and abroad. Baileys Irish Cream and Ballygowan Spring Water come to mind in this regard but the roll of honour is very much longer. This establishes the point that the requirements of the marketplace are well within the capacity of Irish industry. Not only can we match the best but we can do better. The vital confidence gained from such success can assist us to expand existing companies and launch new ones. There is no reason why the preference of the domestic market cannot be catered for.
Since assuming office the Government have effected a remarkable change in the way the future of this country is viewed. There is commitment to the principle that the economic difficulties shall not thwart our destiny as a nation. The electorate has responded positively to the determination displayed. Given these conditions, it is reasonable to propose that the spirit of endeavour shown be extended to support domestic enterprise. The economic expansion and the consumption of home products ought to be connected better in the public mind.
People have been willing to follow the path to national recovery. We should not be coy about pointing out that they can do so by purchasing competitive quality Irish goods. Great economic and social benefits can flow from consumer decisions without the need for expensive Government intervention. I am confident that a positive response could be elicited following an improvement in public consciousness that they can reduce unemployment.
In my own constituency of Wexford the potential for expansion in the number of small businesses is considerable. With the county's new designated areas status and improved consumer awareness major progress could be achieved.
I stated earlier that the efforts to promote Irish goods are especially relevant at this time; nevertheless, we should bear in mind the need to sustain our endeavours throughout the year. The coming 12 months will be very significant.
In the Central Bank's autumn statement an acceleration in the growth of consumer spending is forecast. It is envisaged that the pattern of growth in real disposable income will be enhanced by a more favourable trend in employment in 1988, which will more than offset the acceleration in average earnings growth. In these circumstances, consumer spending is forecast to increase by about 1¼ per cent in 1989.
These projections give rise to significant opportunities but to capitalise upon these conditions effective marketing is vital. In the past the area of marketing has seemed rather alien to Irish industry. Some people have viewed it as being akin to black magic, useful to be aware of but to be avoided. Thankfully, this situation is changing.
The new emphasis upon sales techniques gives rise to confidence in the future. It would appear that the importance of selling Irish as well as buying Irish is being accepted at an ever-increasing level. It is heartening to witness the quality and quantity of Irish promotions in retail outlets. In this sphere our producers are displaying what they have learned, how to match and outstrip their competitors. No longer can the complaint be made by the industry that the public is responding in a less than satisfactory manner. Neither can the consumer bemoan the difficulty in finding Irish commodities of a high standard. Yet, the necessity to use these achievements to date as a foundation for future development cannot be over-emphasised.
With the marketplace being characterised by greater sophistication, it is unfortunate that shoddy produce still find a way into this country and frequently unscrupulous retailers push such substandard goods. It is crucial that the shopper be vigilant unless hard-earned cash is to be wasted on dubious purchases. However, we can be consoled by the fact that more attention is being paid to value than price by many people. Evidence strongly suggests that the consumer is willing to take the time to examine each item before deciding whether or not to buy. This is good news for the domestic manufactures. They are geared towards the upper end of the market. Scepticism on the part of the shoppers in relation to cheap imports of questionable merit is to be encouraged.
With keener competition expected in the future, we simply cannot afford to under-sell our products or to be bashful in the commercial field. At this time of year the shopping areas of towns and cities are the scene of hectic activity and the pressurised atmosphere of the Christmas season is hardly conducive to relaxed purchasing. However, I would appeal to the public to take that extra minute or two in which they can examine items. If Irish goods are requested, I am confident that retailers will direct them to top quality competitive products. As a businessman I am well aware that there is no place for charity in business today.
In raising this matter today I am calling for the purchasing of Irish goods not simply for its own sake but instead to highlight the quality and standard of these goods. One of the great ironies of the Irish economy today is that we have the tragedy and waste of high unemployment existing side-by-side with enormous new business opportunities for the Irish manufacturing industry which have the capability of creating thousands of new jobs. The future for Ireland is in export growth and the single European market of 1992 brings into existence a new home market of over 320 million people. A vigorous marketing approach to developing this European market is our best hope for sustained economic expansion over the long term with its consequent reduction in dole queues and improvement in living standards. It is realistic and sensible for us to look onwards at this enormous scope for export growth. At the same time, it would be sheer folly, if in doing so we neglected the domestic market or failed to take the fullest advantage of the very significant new business opportunities which exist for Irish farmers. This is a topical time to consider this issue.
In the short period of the Christmas shopping season Irish consumers will spend an estimated £600 million on food, clothing, drink and a variety of other merchandise. The experience of previous years suggests that the greater part of this spending will go on imported goods. Irish industry overall has a minority share— 43 per cent of its own domestic market — an extremely low percentage in comparison with other European states. If the aim was to secure a fair and reasonable 50/50 balance between imports and Irish products, the bonus to Irish industry would be an estimated £1.25 billion in a year in new businesses which, in turn, would add up to 30,000 extra people in the workforce. Not all shoppers are aware of these statistics but most Irish people know that their day-to-day spending adds up to a massive purchasing power which has a powerful potential impact on job creation. The possibility of many new jobs in 1989 will turn on hundreds of purchasing decisions being made at this time.
Research has shown over the years that most Irish people prefer to buy an Irish product but not any Irish product. The shoddy, inferior or the over-expensive product will not just be bought because it is Irish-made. In today's highly competitive market where consumers have greater choice and variety than ever before, Irish goods can expect to sell only where they match in qaulity, design, style, durability and all-round value. Fortunately, Irish industry is highly competitive as shown by the success stories in our export markets around the world. Not only can we produce goods which equal the best of imports but in many instances we provide goods which are superior.
While Irish shoppers may prefer to buy an Irish product, often aspiration is not translated into reality. In the hustle and bustle of shopping it is all to easy to forget the importance of giving the Irish product a fair chance by seeking it out, comparing it, looking for Irish alternatives where none are offered and generally taking a little extra time while purchasing. At one time we tended to have an inferiority complex about buying Irish goods. There was almost a snob element involved in deliberately seeking out imported goods, especially in areas like fashion and clothing. Today, people, by and large, accept that such an approach is neither sensible nor particularly fashionable.
Research has shown that in most consumer categories value, not price, is the major buying criterion. This is good news for Irish manufacturers. Our economy is not really geared to competition at the lower end of the market and a policy of quality, high standards and value is a better guarantee of sales success. Despite the average shopper's emphasis on quality, there is a remarkable amount of cheap, shoddy merchandise coming into the country, and often sold by less than scrupulous means to the unwary purchaser. Both the shopper and the economy lose out. Any drive to increase the sales of Irish goods can only succeed with strong retail support. Quality Irish goods need to be supported by effective sell Irish campaigns. It is very encouraging to see all the indications of a very positive and supportive attitude on the part of many of our major retail outlets, as well as in the smaller stores.
I was very pleased to note the nationwide retail response to the recent retail trade initiative organised by the Irish Goods Council to maximise in-store promotional support for Irish products over the Christmas season. I understand that up to 1,000 retailers in virtually every category of merchandise will be organising special Irish promotions this Christmas, ranging from window displays, consumer fashion shows, in-store displays and briefing sales staff to encouraging Irish purchasing. This seasonal activity reflects a year round sell Irish outlook by many retailers, especially the supermarket multiples and the symbol groups, the major department stores and the speciality shops.
It is particularly important that a positive attitude exists at all level of retail operation, but more especially with store buyers. They can make a huge difference in helping the smaller and newer Irish companies to get their first vital orders or to get a new product off to a successful start. While the shopper and the retailer essentially determine between them whether Irish goods win or lose in the marketplace, it must be recognised that Irish manufacturers themselves have the biggest role to play. Product excellence needs to be wedded to a marketing outlook. In recent years there has been serious criticism of the level of marketing performance across the board in Irish industry. It has been identified as the single biggest weakness with Irish firms, the biggest barrier to sales growth. This situation is improving. There is evidence of a more aggressive oriented outlook by Irish companies, a greater priority in seeking out new business potential, a greater willingness to invest in marketing and promotion.
As I said at the outset, 1992 will open up a new significant chapter in our economic and industrial history. In order to maximise our opportunities in the wider market we must now, in the comparatively short time leading up to the Single Market, nail down the Irish market. Most indigenous Irish manufacturing firms and many Irish jobs rely heavily on Irish sales, in particular at Christmas. This may change with time, but it will not change overnight. All of us can help to ensure that buoyant sales of Irish goods in Ireland create a base for expansion in the rest of Europe. I thank the Cathaoirleach for giving me an opportunity to raise this matter on the Adjournment and I recommend it to the House.
