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Dáil Éireann díospóireacht -
Tuesday, 26 Oct 1976

Vol. 293 No. 3

Ceisteanna—Questions. Oral Answers. - Trade With Russia.

18.

asked the Minister for Industry and Commerce the reason for the huge drop in exports from this country to the USSR for the first eight months of this year when the value of exports was only £987,000 as compared to £9,195,000 in the first eight months of 1975; and if he will indicate the steps he proposes to take to redress the present imbalance in trading between the two countries.

The drop in exports from Ireland to the USSR from £9,195,000 in the first eight months of 1975 to £987,000 in the first eight months of 1976 can be attributed to the fact that exports of beef, which made up a very large proportion of total exports to the USSR in 1975, fell from £8.8 million for the period January-August, 1975 to £0.32 million for the same period in 1976.

In the case of a country with which Ireland has an adverse trade balance the general aim is to seek to improve the position by encouraging the expansion of exports. The Government, through Córas Trachtála, have made a wide range of grants, incentives and services available to exporters and these, of course, apply to exports to the USSR.

Special measures have been taken in recent years to encourage exports to the USSR. An Irish Technical Week was held in Moscow in April, 1973, in which 11 Irish companies participated and there have been three consumertechnical products presentations in our embassy in the USSR in 1975-6 in which a total of over 40 Irish firms participated. In addition the first Irish trade mission to the USSR organised by CTT in conjunction with the Irish Exporters Association visited that country in May, 1975, and 21 Irish companies participated. Furthermore Córas Tráchtála have based an officer full time in Moscow to assist Irish exporters to exploit exports opportunities in the Russian market.

Does the Minister feel disappointed arising out of the low volume of exports, apart from beef, to Russia? Is the Minister not dissatisfied with the outcome of the various trade missions, and a visit by him to Russia, when he considers that it was not possible to achieve in the first seven months of this year even £1 million of exports in spite of the fact that during that period we imported £14 million worth of goods from the USSR? Does this not justify the Minister taking up with the Russian Embassy here or with the Russian authorities this serious imbalance in view of the fact that it is Government buying that is involved as far as the Russians are concerned?

First, I agree with the thrust of the Deputy's supplementary question; it is very disappointing. Secondly, that what I took to be a fairly official situation, namely, an interview with a journalist from Tass in the earlier part of this year, I expressed very clearly and forthrightly my displeasure of the situation then evolving. I would, however, add for the understanding of the House what may be a helpful clarification. The beef which accounted last year for £8.8 million out of over £9 million was not commercial beef. It was beef bought out of intervention.

What I have tried to do to indicate the general trend, deeply unsatisfactory as it is, is to prepare a table which indicates our exports excluding beef, which are not bought on the commercial market here. In 1972 those exports were £234,000; in 1973 they were £476,000; in 1974 they were £721,000 and in 1975 they were £1,257,000. We do not, of course, have a figure yet for 1976, but I do not think it will be any lower than last year and I am hopeful it will surpass it. The point I am making is that we exported no beef in 1972 or 1973, £7,500,000, nearly £9,000,000 in 1975 and very little in 1976. If you take the beef out, though it is much too low and though I would like to see more action there, there is a rising trend.

I am very happy to have this expression of opinion from the Opposition because it coincides entirely with my own opinion and I would be very happy to see that those thoughts are conveyed to the place where they may influence purchasing decisions.

While I accept the Minister's attack on non-purchasing by proposed purchasers in this regard, I would like to ask him if another contributory factor to this could be that outlined by the general manager of CCT recently when he complained about the unavailability of financial resources from the Minister towards assisting in exporting our goods?

I do not think that is an accurate representation of what the general manager said and I am not sure he would wish to have that construction put on his words. However, I can say two things: firstly, this is not a consumer goods problem but a capital goods problem. The demands made are very large but as far as I am aware we have never lost an order through the unavailability of such export credit guarantees.

I am not talking about export credit guarantees but about complaints that have been made of not having sufficient money to launch an export campaign——

That is a separate matter and a wider issue.

I am extremely pleased and proud with the financing of CCT's export efforts which is a Government priority. In the light of the general evolution of the budget, it will be seen that our expenditure in that area has held up and will continue to hold up very well.

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