Vol. 431 No. 4
21 Mr. Crawford asked the Minister for Tourism and Trade if he will give details of the measures he proposes to introduce to improve quality in existing market-led product areas so as to enhance their future market acceptability; and if he will make a statement on the matter.
(Donegal South-West): The recent currency crisis once again highlighted the vulnerability of those indigenous firms who depend on price-competitiveness to win market share. The reality of our geographical location on the periphery of Europe and the small size of our domestic market mean that businesses which compete mainly in price will find it very difficult to achieve the necessary economies of scale which will enable them to trade competitively. The solution for such firms must be to seek market segments where they can compete on the basis of differentiated product which can give value to the customer in terms of higher quality or better service or some other non-price factor.
Market-driven product design and development can be a key element in enhancing a company's competitive edge. An Bord Tráchtála operates five specialised programmes in the area of design and product development to help companies exploit the many opportunities created by rapidly changing technology and shifting market trends. The individual company advisory programme provides confidential and impartial advice on the improvement of existing products, packaging or promotional literature. The group development programme facilitates the gathering of design and market information for groups of firms with common marketing objectives and needs. Through this programme consultants prepare product, merchandising and packaging concepts. Costs are shared between the participating firms and the agency. The design intelligence programme gathers design intelligence and forecast information in a number of product areas, notably apparel, knitwear and fabrics. Seasonally or annually, information is communicated to companies through publications, workshops or seminars. The design audit programme provides an expert, impartial assesment of a company's existing design activities, along with an evaluation of current products, packaging, sales literature and promotional print. Costs are shared between An Bord Tráchtála and the participating firms. Finally, under the advanced products programme product concepts are developed for market research and testing.
The programme provides funded design and product development consultancy, typically involving up to 20 man-days of work by qualified specialist consultants. To participate in this scheme, companies undergo assessment to determine their capability to benefit from significant product development work. Consultancy fees are paid by An Bord Tráchtála with a contribution from the participating companies.
I am surprised the Minister referred only to trade and manufacturing and not to tourism. Will the Minister outline the measures the Department intends to introduce to improve quality in existing market-led product areas in tourism, referring specifically to the proposals for a new system of grading for hotels and other facilities?
(Donegal South-West): That is a separate question.
The question is down to the Minister.
(Donegal South-West): We are talking about market led products——
Yes, and tourism.
(Donegal South-West): That question relates to trade rather than tourism. I have no doubt a comprehensive response will be given on what is being done by the Department and Bord Fáilte in this regard.
I realise the Minister is standing in for the Minister for Tourism and Trade, nevertheless a reply was given to my question. I hope the language used in tourism at present is not a reflection of the knowledge of civil servants. This question derived directly from a contribution made by the chief executive of Bord Fáilte at a recent conference at which he placed special emphasis on improving the quality in existing market-led product areas and I am disappointed there was not a reference to that aspect of the matter.
The Deputy has made his point.
This is not good enough.
Will the Minister refer my comments to the Minister for Tourism and Trade? Some important questions remain to be answered in this regard. How will the new grading system be organised? Who will carry out the assessments? What products will be included for the grading system and will hotels which are currently graded A be downgraded? A standard check list was mentioned. What will this list entail? CERT awards the ISO9000 certificate to certain companies. What are the Department's proposals in relation to extending that certificate to other tourism products?
These are all meritorious questions but they are additional to the subject matter of this question.
No, they are not. It is only through the generosity of Deputy Deenihan that the Minister in the absence of Deputy McCreevy, is getting away with not answering questions.
(Donegal South-West): I am being totally honest.
I accept that.
(Donegal South-West): I assure Deputy Deenihan, who is being very reasonable, that the information will be made available to him as soon as I receive it.
