Vol. 456 No. 5
6 Miss Harney asked the Minister for Tourism and Trade the growth in the value of exports during 1994 and the anticipated growth during 1995; the extent to which nominal export trade is represented by transfer pricing; if he can give an assessment of the growth of exports and employment in indigenous industry; and the measures, if any, he intends introducing to achieve greater growth. [14080/95]
52 Mr. Leonard asked the Minister for Tourism and Trade if he will comment on the latest ERSI prediction that export growth will slow by 0.75 per cent over the next year. [14060/95]
144 Mr. Killeen asked the Minister for Tourism and Trade his views on the latest ESRI prediction that export growth will slow by 0.75 per cent over the next year; and if he will make a statement on the matter. [14151/95]
152 Mr. Andrews asked the Minister for Tourism and Trade his views on the latest ESRI prediction that export growth will slow by 0.75 per cent over the next year. [14159/95]
I propose to take Questions Nos. 6, 52, 144 and 152 together. The year 1994 was the best on record for Irish exporters, including an excellent performance from indigenous companies. Total merchandise exports reached £22.7 billion, an increase of 15 per cent on 1993.
The projected outturn for 1995 is also very positive. The latest CSO statistics available are for March of this year and they show that exports for the first quarter were worth £6.3 billion, an increase of 19 per cent on the same period last year.
The slow down in export growth rates projected by ESRI reflects a reduction, anticipated by ESRI, in the growth of world trade. May I point out, however, that projected growth rates are still significant and we can expect buoyant export markets in the coming years. An Bord Tráchtála expects 1995 merchandise exports to show an increase of 13 per cent to £25.7 billion, while non-food indigenous exports, on which ABT concentrates its efforts, are expected to grow by 16 per cent.
To achieve this target, ABT in particular is currently involved in an intensive campaign to encourage exporters to seize new business opportunities emerging in the enlarged EU Single Market, under the banner "Opportunity Europe". This involves a dual strategy of supporting the 800-plus Irish companies at present selling in continental Europe and encouraging Irish exporters who have already been successful in Britain to expand into other European markets.
As regards growth in employment, ABT survey figures indicate that its client firms who are all located in the indigenous sector employed almost 4,000 additional people in the year to June.
On the issue of transfer pricing, the Deputies may wish to be aware that targets set by the Government for ABT relate to the export performance of indigenous non-food companies. Export figures for this sector, therefore, are unaffected by activities in the multinational sector.
I should mention that an Interdepartmental Group, chaired by the Department of the Taoiseach, and on which my Department was represented, was established in August last year to examine, inter alia, the statistics available on external trade and their impact on national income statistics.
I understand that the group's report is currently being finalised and will be submitted to Government in the coming weeks.
However, in evidence to the Public Accounts Committee, the Director of the Central Statistics Office indicated that it had exhaustively examined the official trade figures in conjunction with both the Revenue Commissioners and the top exporting companies. Based on this examination, the CSO found no reason to significantly revise the figures. In the circumstances, I also can see no reason to doubt the figures.
We are all pleased to applaud the increase in exports. The mystery is that this increase has not resulted in employment growth. The purpose of the question was to seek to extract from the Minister the correlation between economic growth and employment growth. The experts seem unable to give a reasonable explanation of why we are not benefiting. Would the Minister care to comment on that and on the report of the National Economic and Social Council who examined the issue of transfer pricing, economic growth and the lack of employment growth following the massive growth in exports? Are there any measures the Government can take to achieve higher levels of employment corresponding to the higher levels of trade?
When Deputy Molloy was a Minister under the former Taoiseach, Mr. Haughey, he said, in answer to a question, that one of the great mysteries of life was to identify the reasons for the gap when there are low inflation rates, low interest rates, high exports and stubbornly high unemployment rates. The report which was commissioned is due before the Government in a matter of weeks. The Government has to take a pragmatic view of the unemployment situation. Initiatives in this year's budget went some small way towards reducing the burden of taxation, making it easier for employers to take on employees and opening up opportunities for exporters so that we can manufacture more goods at competitive prices and sell them abroad. We must build on that in terms of creating employment. When the report comes before the Government I will be happy to give details of it to the House.
Has the Department or any of the Government agencies carried out any studies seeking to identify markets for goods the manufacturing of which involves a high labour content? We are succeeding in achieving large increases in our export trade, but this relates to modern high technology industry, automation etc. and does not result in jobs. However, people also count, and overall Government policy should be aimed at attracting industries that would provide greater employment. There are vast tracts of the country where there are no job opportunities. There are communities in the towns and cities of Ireland where the male and female working age population have no prospect of getting employment and are rearing families who have never seen their parents go out to work. This is very serious from a social and economic point of view.
I put this to a major employer in Deputy Molloy's constituency recently, and he pointed out that a machine on the working floor was equivalent to 400 employees. It is difficult to attract industries such as the Deputy mentioned. A combination of using our own natural resources and direct Government assistance in terms of budgetary and fiscal measures would make it more attractive for employers to take on employees and for exporters and manufacturers to produce quality goods that could be sold abroad and benefit the country economically.
Will the Minister undertake to have the report of the interdepartmental body published relatively soon after the Government receives it?
As soon as it has been dealt with by Government, I will see that it is.
The Minister did not address the question I asked. Have any surveys been carried out by the Department to seek to establish markets for goods that have a high employment content in their manufacture, and have efforts been made to seek to have such industries established here or to develop indigenous industries such as crafts etc?
Deputy Molloy is well aware that the Irish Trade Board, is constantly in the business of identifying new and potential markets for manufacturers here. The Minister of State is in Sweden this week on such a trade mission. I was on a trade mission in Malaysia earlier this year and was astounded at the results which meant not only the retention of jobs for Irish people at home but the creation of new jobs, although they may not all be labour intensive in the way Deputy Molloy would like, taking into account labour rates that apply in western democracies nowadays.
