asked the Minister for Industry and Commerce whether he considers that the latest Central Statistics Office figures for trade, which indicate that in the first ten months of the year, exports have fallen by £535 million below the level for the same period in 1985, give grounds for concern; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Trade Figures.
30.
(Limerick East): The export figures quoted by the Deputy should be put in perspective. First, the fall he refers to relates to export values only; there has been no reduction in the volume of exports in 1986 to date over the same period in 1985. Secondly, the full picture for the first ten months of 1986 shows that Ireland's trade surplus reached a record £544.5 million, almost twice the surplus for the corresponding period last year. Thirdly, the latest trade figures for 1986 reveal that October was the sixth month in a row during which Ireland's trade was in surplus.
I would, of course, like to see even better performances. The fact of the matter is that the decline in the value of exports was due primarily to external factors — the decline in the value of sterling and the US dollar and the slower than expected pick-up in world demand.
I can say, however, that CTT have launched a major initiative to help indigenous exporters direct their efforts to reap more fully the benefits in European markets arising from the favourable value of the Irish pound against EMS currencies. Three hundred firms have already committed themselves to taking part in the campaign. This initiative is supplemental to CTT's existing full range of services to exporters.
I am hopeful of better prospects for exports in 1987 resulting from these efforts and from a better world trade environment generally.
Will the Minister confirm that the value of exports declined by 6 per cent in the first ten months of this year and that in October of this year the export of office machines and computers was well down on the same period last year and that this would indicate a falling off in the high-tech area? Does the Minister not regard this as being somewhat disturbing?
(Limerick East): There is a decline in the value of exports but there is not a decline in the volume. The principal reason is that people who have contracts into the UK and US are getting less because of the weak dollar and weak sterling. In the hardware side of the electronics industry, that is true. From the phenomanally high rates of export from 1981 to 1984 in hardware electronics there has been a decline but that is in line with what is happening all over the world.
Would the Minister agree that this has resulted in stockpiling of high-tech industrial outputs and that it is consequently creating difficulties for these companies?
(Limerick East): Stockpiling is not creating difficulties at the moment. It is my information that the problem has now peaked internationally and we hope for a continuing flow of electronics hardware into Europe over the next 12 months.