Vol. 433 No. 2
9 Mr. Currie asked the Minister for Tourism and Trade if, in view of the fact that the Government has set a target of an increase in exports by indigenous Irish companies from £3.7 billion in 1992 to £5.5 billion by 1996; if he will give details of the measures, if any, he intends to put in place to achieve this target.
The measures to achieve the indigenous exports target mentioned by the Deputy will appear in the market development sub-programme of the operational programme for industry 1994-99. This programme is being finalised at present as part of the national plan and will be submitted to the EC Commission as part of the Structural Funds exercise.
The market development sub-programme for 1994-99 will seek to build on the success of the 1989-93 programme. It will have as its main aim to promote and develop trade from the Irish indigenous industrial and services sectors through a market-led approach.
The different measures, which will be implemented by An Bord Tráchtála, will cover issues such as aid for the marketing capability of indigenous Irish firms, increasing the awareness of Irish products overseas, support for small and medium-sized firms to develop their capacity to introduce new products and services in the marketplace and assistance in market development for companies already established or seeking entry to national or regional markets. In addition, assistance will be provided for the promotion of international services and the textile and clothing sector. These support measures from An Bord Tráchtála, when applied to the drive and commitment of our exporters, will be the basis for export growth in the years ahead.
Will the Minister agree it is essential to provide adequate funding if we are to have a well focused marketing drive to double indigenous exports and reach our targets? Does the Government propose to make funding available to ensure that our 1,200 indigenous exporters can sell their products in the marketplace, especially within the Single Market? It is very important that our indigenous exporters concentrate their efforts in the Single Market.
When the next tranche of Structural Funds is received there will be a market development sub-programme of the operational programme for industry. Such a programme was successful in the period 1989-93. I hope the next programme will be equally successful. As the Deputy said, the prospects for growth lie with indigenous firms. Our target is an almost 50 per cent increase in sales during the next five years, from a figure of £3.7 billion to £5.5 billion. Jobs will be provided in that sector. I hope that when the national development plan is agreed provision will be made for a strong market development sub-programme.
Since it is now unlikely that we will get £8 billion from the EC can the Minister say if this will affect his target for 1996? To what extent is his target based on the development of the services sector which has not yet reached its full potential? Will he accept that we should not throw money at indigenous industry, rather we need to create the climate in which it can develop and, in particular, to develop our marketing skills and improve the quality of our products if it is to be successful in an ever competitive overseas market?
In regard to the £8 billion mentioned by the Deputy, I am hopeful that Ireland will be able to secure its fair share of EC funds but that matter has not yet been decided. The Government is quite confident it can secure those funds.
My overseas visits have led me to believe that the greatest opportunity for Irish businesses lies in the services sector. Our high labour costs and other costs mean that some Irish companies cannot compete in the new markets being developed throughout the world. We have an expertise in the services area which other countries are crying out for. In the past few years many Irish companies have realised their potential in this area and are selling their services to other countries where there is tremendous growth. We are in a better position than most other countries to sell our services. Much more emphasis will be placed on the services sector where jobs can be created.
Many Irish companies need to focus more on marketing their services and products. Some months ago I announced a new marketing initiative, the Euro Place Programme, under which Irish companies will be given a small grant, based on their sales performance, to enable them to attract more marketing people. I was amazed to ascertain that only about 60 Irish companies had people employed abroad to sell their products. Many companies rely on agents to sell their goods abroad. While this system can be very successful, these agents usually work for a number of companies. I was amazed to find that so few companies in Ireland—a country which has more than £16 billion in exports and is a trading nation — had people employed abroad to sell their goods and services. Some of the money under the next tranche of funding will be devoted to this area.
In view of the fact that more than 100,000 workers depend on our indigenous industries, may I ask the Minister if the Government intends creating a better financial climate for indigenous industries to enable them to prosper? Would he agree that there are a number of barriers in the system which need to be removed before we can successfully take on the Single Market and other markets? Some of the barriers in the system are preventing indigenous industries from prospering.
The thrust of the Culliton report was to lower costs thus making companies more competitive. Under the programme announced some weeks ago by my colleague, the Minister for Enterprise and Employment, Deputy Quinn, the Government has committed itself to taking action in a wide variety of areas with the aim of reducing costs. We need to realise that we are competing on a big stage with companies from other countries which have a more efficient means of doing business and lower costs, including lower wage costs. We need to eliminate all those barriers if we want to be in a position to compete in these markets. If we cannot compete in these markets we will not be able to create jobs and will lose some of our existing jobs. We need to face up to this fact.
Some economies which were regarded as very badly developed five years ago took action in these areas. Hard decisions have to be taken by the Government to improve the position of Irish industry. We must be prepared to take those decisions. Otherwise we will not be able to compete in the markets, and when we cannot compete we are lost.
With regard to the measures the Minister intends putting in place to achieve the target set out in the question, I wish to refer to the role Aer Lingus is playing in facilitating indigenous companies which are operating in markets outside Ireland. These companies, which do not have the benefit of a Government jet, have to rely on commercial flights to transport their goods to these markets. Will the Minister comment on the future of Aer Lingus in terms of the targets set out by his Department and the way in which he would like to see this company developed?
My admiration for Deputy Sargent increases every time he stands up. The last time he referred to hare coursing, while this time he has referred to Aer Lingus. I do not think this issue is appropriate to this portfolio.
The next time he will refer to the Balbriggan by-pass.
He is learning how to escape from greyhounds.
I call Deputy Rabbitte for a final question. I am very anxious to move on to other questions.
With regard to his remark that no decision has yet been made on the £8 billion — this will be news to many people outside this House — may I ask the Minister if I was not correct in believing that a decision on this money was made last December? This was the stroke of all time — it saved the leadership of the Taoiseach and caused the Labour Party to have stars in its eyes at the prospect of disbursing this money.
The Deputy is raising an extraneous matter.
The Minister referred to this money; it is part of the question. Was I wrong in thinking a decision had been made in regard to this money?
The point I was making in reply to Deputy Harney is that we do not have the £8 billion yet. I am quite confident that we will get this amount. The Deputy was saying that we did not have the £8 billion.
On a point of order, approximately five minutes ago the Minister said the £8 billion had not yet been negotiated. He has now said the opposite. May I ask him to clarify whether we do or do not have the £8 billion?
We will have to wait and see how the matter develops.
