Written Answers. - Product Sourcing.
Liam Burke
Ceist:
55
Mr. L. Burke
asked the
Minister for Enterprise and Employment
the progress, if any, made during the last National Development Plan in increasing the proportion of goods bought in by foreign companies which are sourced in Ireland; and the target he has set for further progress in the course of the next plan.
Paul Bradford
Ceist:
92
Mr. Bradford
asked the
Minister for Enterprise and Employment
the progress, if any, that has been made during the last National Development Plan in increasing the proportion of goods bought in by foreign companies which are sourced in Ireland; and the target he has set out for further progress in the course of the next plan.
I propose to take Questions Nos. 55 and 92 together.
As the Deputy will be aware, the National Linkage Programme exists primarily to assist in expanding sales by Irish suppliers to overseas companies located here. The IDA (now Forfás) Survey of Irish Economy Expenditures, which is carried out annually, is the main measurement of linkage activity. The survey relates to companies employing more than 29 people and covers the SFADCo and Údarás na Gaeltachta areas as well as Forfás regions. The latest year for which survey results are available is 1992.
The survey estimated that, in 1988 — the base year of the current National Development Plan — overseas industry (other than in the food sector) spent £612 million on Irish-produced raw materials and components, £688 million in 1989, £753 million in 1990, £781 million in 1991 and £811 million in 1992, giving a total increase of £199 million over the period to 1992.
Obviously, a key element of the approach to maximising the benefits of inward investment in the course of the new National Development Plan will be to seek to achieve an increased level of linkages between indigenous and foreign owned industry; in this regard, the objective for the period of the new National Development Plan will be to increase significantly on the 1992 level of such purchases.
While the National Plan itself does not contain specific targets in relation to linkage, the recently publishedProgramme for Competitiveness and Work targets the generation of an additional £200 million in sales from the development of linkage opportunities mainly to electronics companies during the lifetime of the programme, 1994 to 1996 inclusive. As a means of achieving these targets, the programme advocates the development of networks of complementary indigenous suppliers capable of giving a comprehensive integrated supply service to large corporations located in Ireland and their associated companies abroad. In addition, the programme proposes that Forbairt and An Bord Tráchtála adopt strategies which will address issues of scale, capability and technology levels of Irish companies, as well as encouraging such firms to adopt increasingly demanding standards in areas such as customer service and new product development.
