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JOINT COMMITTEE ON FOREIGN AFFAIRS AND TRADE díospóireacht -
Wednesday, 13 Jun 2012

Trade Promotion: Discussion with Department of Foreign Affairs and Trade

I remind members and those in the Visitors Gallery to ensure their mobile phones are switched off completely for the duration of the meeting as they cause interference, even in silent mode, with the recording equipment in the committee rooms.

This is the first of a series of meetings and other activities which the joint committee has decided to undertake to examine the role of the Department of Foreign Affairs and Trade in trade promotion and economic recovery. The issue was designated by it as one of the high priority items in its work programme for 2012. The aim of the committee's examination is to prepare and publish a report on the strategy of the Department in response to the economic crisis, its newly recognised responsibilities for trade promotion and how well it is performing in this respect.

As well as our meetings on the topic, a small delegation from the committee will visit the United States on a field trip at the end of June. The United States is a key trading partner and offers us the opportunity over the course of six days to examine the ways in which the Department operates in cities in which it has new missions, in the well established mission in San Francisco and a city in which it has no resident mission, Houston, which may offer good opportunities to develop trade and investment relationships. The delegation will meet representatives of Irish State agencies, business networks and industry, as well as using the opportunity to explore aspects of the Department's diplomatic work. At the end of our examination the committee will prepare a report which we hope will make a positive contribution to the work the Tánaiste and his officials are doing to develop the trade promotion remit.

In addition to the departmental officials, the committee was also to hear today from the president of the Irish Farmers Association, Mr. John Bryan, but, unfortunately, he had to withdraw because of illness. He sends his apologies, but he is anxious to meet the committee at the next suitable opportunity. That will happen in the near future.

It is appropriate that the committee begin this examination with a discussion with senior officials of the Department with responsibilities in the trade area. We are joined by the following: Mr. Colm Ó Floinn, director general of the trade and promotion division; Mr. Niall Burgess, director general of the Anglo-Irish division; Ms Kay Coll, director of trade promotion; Mr. Aidan O'Hara, director of economic messaging; and Mr. Joe Hackett, director of the Irish abroad unit and the North America unit. They are all welcome. Before I invite them to make their presentation, I advise that they are protected by absolute privilege in respect of their utterances to the committee. However, If they are directed by it to cease making remarks on a particular matter and continue to do so, they are entitled thereafter only to qualified privilege. Only evidence connected with the subject matter of these proceedings is to be given and delegates are asked to respect the parliamentary practice that, where possible, they should not criticise or make charges against a Member of either House of the Oireachtas or any person, persons or an entity by name or in such a way as to make him, her or it identifiable. I now invite Mr. Ó Floinn to address the committee.

Mr. Colm Ó Floinn

I thank the Chairman and committee members for giving us this opportunity to brief them on the role of the Department of Foreign Affairs and Trade and the embassy network in trade promotion and general economic messaging. As the Chairman mentioned, some members of the committee will shortly visit Atlanta, Houston and San Francisco to consider the work of Ireland's consulates general in the United States. In that regard, I am pleased to be joined by my colleague, Mr. Niall Burgess, director general of the Anglo-Irish division. The consulates report to his division and that of Mr. Joe Hackett, director general of the North America unit. My two colleagues from the trade promotion division are Ms Kay Coll, director of trade promotion, and Mr. Aidan O'Hara, director of economic messaging and cultural relations.

The mission statement of the Department is to promote and protect abroad the values, interests and economic well-being of Ireland and its people. A core high-level goal of our current strategy to 2014 is to promote Ireland's economic interests in Europe and internationally. The full resources of the Department at headquarters and through the embassy network are committed to this end and the strengthening of Ireland's reputation internationally.

In the past there have been other priorities for the Department and the embassy network, most notably the work at home and abroad in pursuing peace and reconciliation on the island. I certainly assure the committee that the key over-riding priority for us now is the contribution we can make to the Government's agenda of renewed and sustainable economic growth by leveraging the strength of the embassy network as a platform for trade promotion and getting the message out about Ireland's strengths in innovation and key industrial sectors.

The team in the trade promotion division which I lead acts as the interface between the embassy network abroad and State agencies, other Departments and the private sector in this context. It is worth emphasising that the embassy network has always been involved in promoting our trade and economic interests abroad. When he addressed the ambassadors conference convened around this time last year, following on the commitment given in the programme for Government, the Tánaiste and Minister for Foreign Affairs and Trade, Deputy Eamon Gilmore, stated the Department's new and enhanced role in trade promotion was "in part recognition of the valuable contribution our embassy network has been making to our economic recovery."

There is no doubt that, alongside its ongoing foreign policy and diplomatic functions, including consular support for citizens abroad, the Department and the embassy network are now focused more than ever on Ireland's trade, investment and tourism interests. We are determined to respond effectively to the enhanced responsibilities assigned to us in trade promotion by the Government and continue to work closely with our colleagues in the Department of Jobs, Enterprise and Innovation who are responsible for trade policy. We will also work with State agencies reporting to that and other Departments. I assure the committee that we recognise fully that we will be judged on the ongoing contribution we can make through the embassy network to the economic and trade promotion agenda.

In contributing to economic recovery we are guided by the Government's global trade agenda to 2015, Trading and Investing in a Smart Economy, which was agreed by the relevant Departments with full buy-in by State agencies based on their own challenging targets in the various overseas markets and sectors. The Export Trade Council, chaired by the Tánaiste, oversees implementation of the trade strategy and meets twice a year at high level, with the involvement of the relevant Ministers and senior officials, the chief executive officers of Enterprise Ireland, IDA Ireland, Bord Bia, Tourism Ireland, Culture Ireland and Science Foundation Ireland, as well as a number of individuals from the private sector with relevant experience, including representatives from IBEC and the Irish Exporters Association.

In the priority markets - both mature and emerging - identified under the trade strategy we have put in place local market teams chaired by our ambassadors, with the State agencies participating. They draw up annual market plans and report on them to the Export Trade Council through my division. These plans focus, in particular, on areas where a co-ordinated embassy and State agency approach to the promotion of Ireland's economic interests is likely to yield best results. At its second meeting in February under the Tánaiste's chairmanship the Export Trade Council reviewed plans for this year. In the autumn it will consider mid-year implementation reports.

Arising from the Government's decision on the transfer of trade promotion functions last year, the Department of Foreign Affairs and Trade works even more closely with Enterprise Ireland on its annual programme of ministerial trade missions and other trade events. There are approximately 15 trade missions each year, with our embassies working closely with Enterprise Ireland in the field. The Tánaiste and the Minister for Jobs, Enterprise and Innovation consult on and approve this annual programme under the new arrangements for trade promotion. I instance two examples this month of the close co-operation between the Department and Enterprise Ireland in this context. Last Thursday, having met the British Foreign Secretary, Mr. William Hague, in London, the Tánaiste spoke that evening at an Enterprise Ireland dinner in our embassy, which was attended by a large number of representatives of Irish and British companies in the green, energy and utilities sectors - that is an area which offers significant potential for co-operation between Ireland and the United Kingdom. Next week the Minister of State with responsibility for trade and development, Deputy Joe Costello, will lead an Enterprise Ireland trade mission to Russia, on which there has been very close co-ordination between the Department and Enterprise Ireland, both at headquarters and on the ground with the embassy and representatives of Enterprise Ireland in Moscow. We will be joined by representatives of Irish companies on that trade mission, as is usual in such missions.

It is worth noting that all BRIC - Brazil, Russia, India and China - countries are included in the Enterprise Ireland programme of trade missions approved by the Tánaiste and the Minister for Jobs, Enterprise and Innovation for this year. I am sure the committee is aware of the successful trade mission led by the Taoiseach to China in March and other ministerial trade visits to that country so far this year. The Tánaiste intends to visit China in the autumn and it is now normal practice to include a strong trade and promotion element, where possible, in all visits overseas by the Tánaiste and the Ministers of State, Deputies Joe Costello and Lucinda Creighton. That is in addition to specific Enterprise Ireland trade missions involving Irish companies in targeted sectors.

The Export Trade Council also agreed at its February meeting to involve members of the Global Irish Network, as appropriate, in trade missions and other ministerial visits. Network members were involved in the Taoiseach's visit to China and last Friday when we were in London with the Tánaiste, he met members of the network. Members of the network have also signed up to engage with Enterprise Ireland client companies and 130 of them have agreed to be advocates in a range of sectors, including exports, investment and the major tourism initiative for 2013, The Gathering.

Consequent to the transfer of trade promotion functions, the Department has lead responsibility for the joint economic missions in place for a number of key emerging markets for Ireland, including China, Russia, South Korea and Saudi Arabia. Where government to government contact is important for the development of bilateral trade, economic relations and other sectors such as co-operation in scientific research, the trade promotion division co-ordinates across government an agency approach to the work of these missions which meet, on average, every two years. We expect to have meetings of the joint commissions with China and South Korea later this year. I am pleased to say there has been a productive outcome from the most recent joint commission with Russia in November 2011, which was chaired by the Tánaiste on our side, with five working groups in place to pursue work in key sectoral areas, four of which met last month in Dublin. There is close co-operation between the trade and promotion division of the embassy in Moscow and Enterprise Ireland on this follow-up work. While the joint economic commission model is not appropriate to most or even many markets, we are determined that where they are in place, they should be leveraged for practical results in the context of our broader economic and trade agenda.

The close co-operation between the Department and State agencies is reflected in a willingness to commit to an "Ireland House" approach wherever possible. Seventeen of Enterprise Ireland's overseas offices are currently co-located with our embassies. The IDA, Tourism Ireland and Bord Bia are also co-located with embassies in some locations. In some countries, co-location is not feasible, for example, where the administrative capital is not a key commercial centre. The local market teams I referred to and that are now in place in priority markets can help to overcome any disadvantages that arise in this context. Ambassador Dan Mulhall in Berlin told us yesterday, during a video-conference link-up with him as part of our trade promotion training for those colleagues who have been posted abroad this summer, that he convenes regular plenary meetings of the local market team, even though the relevant State agencies in Germany are located in Frankfurt and Düsseldorf. He also spends a significant portion of his time travelling by train throughout Germany to support State agency objectives.

The programme for Government affirmed a determination to "restore Ireland's standing as a respected and influential member of the European Union as part of the wider international community". This was indeed the focus of the special conference of Ireland's ambassadors in June 2011, which included participation by a range of representatives from private sector companies, as well as our State agency colleagues. To support this active reputational work and economic messaging by the embassy network, the trade and promotion division manages an intranet economic information site that is updated daily with alerts issued to all of Ireland's diplomats abroad in the field. The material posted includes, for example, key statements by the Taoiseach, Tánaiste and Ministers, briefing material from the Department of Finance, the Central Bank, the NTMA and the Central Statistics Office, as well as a range of targeted messages, including video clips from the State agencies. It is not necessarily confined to Government or official material and we are ready to draw the attention of our colleagues abroad to all messages that will serve to promote the economic recovery agenda. Much of this material is shared in a dedicated channel with members of the Global Irish Network.

We also work closely with our colleagues in the Department of Finance on economic messaging. Two Department of Foreign Affairs and Trade officials are on secondment there to work on related issues.

Drawing on these materials on the Internet that I have mentioned and on the regular engagement with the Department headquarters, including through video-conferencing, which we are using increasingly due its cost-effective nature, the entire embassy network, whether it is in Valletta, Washington, Paris, Vilnius, Buenos Aires or Beijing, has intensified its effort over the past year to reinforce the renewal of confidence in Irish economic recovery. Our diplomats, whether in the one, two or three-person missions, which make up the majority of missions, or in the small number of somewhat larger embassies, have engaged across the board, be it at Head of State or Government level or with Ministers, key parliamentary figures, senior officials, editorial boards, editors of opinion pages, business correspondents, central bankers and business leaders, those in positions of influence in financial services and so on. Ambassadors regularly give interviews in the print and broadcast media and distribute policy statements to key contacts in their country or, in many cases, countries with accreditation, because many of our embassies are doubly or even triply accredited. Ambassadors have also been instrumental in establishing Irish business networks in key markets. I was on a trade mission with the Minister of State to South Africa last November. Our ambassador had established a new Irish-South Africa business association.

A key part of the economic messaging effort is the placing of opinion pieces by the Taoiseach, Tánaiste and Minister for Finance in prestigious international business papers and other media. The most recent example is the placing of an opinion piece by the Tánaiste in the aftermath of the recent referendum on the fiscal treaty, which appeared in The Guardian, Libération, El País, Il Sole 24 Ore and Neue Zürcher Zeitung. It should be emphasised this co-ordinated placing of positive messages about our economic prospects is only possible on the basis of the longer-term, on-the-ground relationship building with key editorial figures by our embassies in Paris, London, Madrid, Rome and Bern. Similar opinion pieces by Ministers were placed last year in prestigious newspapers internationally with a combined circulation of 16 million, all with the same positive message on our work towards economic recovery.

The embassy network, with support from the trade and promotion division, has also facilitated interviews and background meetings by Ministers, the Tánaiste and the Minister for Finance with key broadcast media such as Bloomberg and CNN, as well as Agence France-Presse, The Wall Street Journal,International Herald Tribune, Handelsblatt, Les Echos, Le Figaro, Le Monde and La Stampa.

Each year the Department and embassy network work to derive the maximum reputational and economic benefit from the unique opportunity represented by the St. Patrick's Day period. The embassy network makes recommendations to the Department for a ministerial presence, and these are evaluated in close co-operation with other Departments and State agencies. Options are then presented to Government for a decision. At headquarters level, in addition, the trade and promotion division works closely with Enterprise Ireland, the IDA, Bord Bia, Tourism Ireland, Science Foundation Ireland and Culture Ireland, drawing on other economic material as appropriate to develop a set of key economic messages for Ministers for use across the globe during the St. Patrick's Day period, with any appropriate adjustments to local circumstances or regional perceptions of Ireland.

The committee will know of the impact of "Riverdance" across China, including at the highest leadership levels. This is perhaps one of the most prominent examples of the ways in which Irish culture, in its various manifestations, can be leveraged to promote positive economic and other messages about our country. When I reorganised the trade and promotion division at the outset of this year, following the Secretary General's departmental restructuring, I deliberately described one of the two sections in the division as the economic messaging and cultural relations section to reflect the important link between the two dimensions of our promotional work. There is a modest grant-in-aid available to us from which small-scale cultural activities can be supported by our embassies, consulates and other missions. In many cases, however, these relatively small-cost events can have a significant multiplier effect in terms of broader economic messaging. The travelling exhibition on Yeats has been used by a number of ambassadors to get across key economic messages to influential audiences at the opening receptions and during the exhibitions.

Another example is the positive impact of relatively modest cultural spending during the St. Patrick's Day period, in Beijing and Shanghai, supported by the Department, embassy and consulate general in Shanghai. The trade and promotion division works closely with the Department of Arts, Heritage and the Gaeltacht and Culture Ireland. I myself serve ex officio on the current board of Culture Ireland. The co-operation between our embassy in Washington, the consulates general in the United States and Culture Ireland during the very successful Imagine Ireland programme last year, which was also supported by the cultural side of my division, is another example of the team Ireland approach that drives our activity.

Our division and the embassy network also co-operate closely with Science Foundation Ireland to reinforce Ireland's reputation for research excellence and the Innovation Ireland brand. It is timely to mention our close co-operation with the Office of the Chief Scientific Adviser to the Government, Professor Patrick Cunningham, to promote Dublin City of Science this year and the Euroscience Open Forum, which will attract some of the most prominent international scientists to the National Convention Centre from 11 to 15 July. The Department and our embassies in key capitals have worked closely with Professor Cunningham and his colleagues in the past year to help prepare the ground for this exciting event. We were pleased to host a video conference in recent weeks for the embassy network with the participation of Professor Cunningham to reinforce the messaging about Euroscience Open Forum. I would add that this was one of the ongoing series of video conferences which the trade and promotion division organises for the embassy network with various State agencies. Again, as I said, it is a very cost-effective way of reinforcing our economic and trade promotion messaging. Other recent conferences have included Bord Bia, and the next in the series towards the end of this month will enable Tourism Ireland to speak to the embassy network about preparations for The Gathering next year.

I will refer briefly to the departmental restructuring directed by the Secretary General, Mr. David Cooney, at the outset of this year. It is designed to sharpen the departmental geographic focus on trade promotion in key country and regional markets and to provide a single point of contact for each of our embassies with headquarters in the context of the resource pressure which we all currently face. New regional entities have been established to cover all aspects of relations with particular countries, including trade promotion. These are the Asia-Latin America unit, the Europe division, the Middle East and North Africa unit, the Africa section within the development and co-operation division, and the UK and North America units within the Anglo-Irish division, headed by my colleague, Mr. Niall Burgess. The trade and promotion division, as lead liaison with the State agencies, works closely with these geographic units and divisions as well as with other relevant units, including the Irish abroad unit and the press section.

This opening statement is not intended to be an exhaustive account of the Department's trade promotion work but rather to offer an overview for the committee. With the permission of the Chair, my colleague, Mr. Niall Burgess would like to comment briefly on our trade promotion in the United States in view of the forthcoming visit by members of the committee, to which he referred. Thank you, Chairman.

Thank you, Mr. Ó Floinn.

Mr. Niall Burgess

I do not have a prepared statement but in our discussion before the meeting, we felt it might be useful if I set out some of the parameters around our operation in the United States. The United States is a key partner and is our second largest merchandising trading partner after Britain. Our exports to the United States are worth €21 billion. Some 500 US companies are located in Ireland employing approximately 100,000 people. The traffic goes both ways, with more than 80,000 US citizens employed by Irish companies in the US. It is one of our strongest and largest markets for tourism, with tourism numbers breaking the million mark last year. It is also a critical partner for research and development, with more than 350 collaborations between Irish and US partners under the framework of Science Foundation Ireland. We pay close attention to this market. The President visited the United States this year and the Taoiseach has visited on three occasions, covering five states. The Tánaiste and Minister for Foreign Affairs and Trade, Deputy Gilmore, has undertaken economic promotional work in two states. Over the St. Patrick's Day period, Ministers undertook economic programmes in Atlanta, Texas, Massachusetts, New York and California. The Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, led the first trade mission to the south east earlier this year, and the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, is leading a delegation on food promotion at the end of this month.

The Department's network in the United States is one of our most complex and integrated services. In addition to the embassy in Washington, we have five consulates in the US located in New York, Boston, Chicago, San Francisco and Atlanta. Twelve officers from the Department of Foreign Affairs and Trade serve in those consulates. Our consulate in New York shares space in Ireland House with the IDA, Enterprise Ireland, Tourism Ireland and An Bord Bia. Wherever possible we co-locate with agencies elsewhere. Our new consulate in Atlanta is co-located in the same building as the IDA office. Regular co-ordination meetings with all the agencies are chaired by our ambassador in Washington. Our work has changed in emphasis quite remarkably in recent years but I stress that the core work of our consulates is still to support the large, diverse Irish community in many cities, the provision of consular services, community support through the emigrant support programme, which has cost approximately $2 million a year over recent years, and support to the older Irish emigrant community on issues such as loneliness and isolation. This will remain an important part of the work.

To reflect what my colleague, Mr. Colm Ó Floinn, has said, economic promotion and support for recovery is very much at the forefront of the work of all of our consulates. I will give a selection of many instances. There is a significant additional emphasis on business networking, most obviously through Global Irish Network. Global Irish Network has more than 300 members, more than a third of whom are located in the United States. They have supported initiatives such as the investment round table hosted by President Clinton in February of this year. They have supported a pilot programme with Enterprise Ireland which is connecting Irish companies with possible partner companies in target regions or sectors overseas. They are assisting with The Gathering, which we hope will generate an extra 100,000 visitors from North America alone next year. They have supported initiatives such as Connect Ireland, which is aimed at encouraging smaller companies to locate in Ireland to help job creation here.

In addition to Global Irish Network, a significant effort has gone into developing and supporting new networks for younger Irish people who are gaining a foothold in business in the United States. These networks, initially supported by the consulate in New York, have expanded to 14 locations across the United States and comprise more than 3,000 members. The recently established Wild Geese network of Irish scientists will open a chapter in Boston shortly.

The structural review in the Department has taken a number of forms. Essentially, our consular network in the United States was put in place in the early years of the State. Four existing consulates were in place by 1933 in areas with large Irish populations. We have had to review that network to see whether we can extend our footprint to cover the areas of growing economic interest in the south east and south west of the United States. That is the context in which we set up a new consulate in Atlanta a couple of years ago. That consulate operates on a very different model from the other consulates. It is a lighter, lower-cost consulate with one diplomatic officer and local office support co-located with the IDA. The consular support, passport provision and consular support services continue to operate out of New York, so that the diplomatic officer is free to work in a more dedicated way on the economic and networking agenda. We are reviewing our network more widely in the United States and we are looking at Texas, which is an area of growing economic interest. We have restructured the Anglo-Irish division to create a single directorate dealing with all aspects of our relationships with North America under the directorship of Mr. Joe Hackett , who is present at this meeting.

I thank Mr. Burgess and Mr. Ó Floinn for giving members an insight into the trade promotion remit of the Department of Foreign Affairs and Trade.

I thank Mr. Burgess and Mr. Ó Floinn for their comprehensive overview of the progress made in the very short time since they were given these new responsibilities. I found the presentations impressive in the range and scope of the areas covered. The presentations were not confined to the core issue of economic and trade promotion, but ranged over culture and tourism related services.

It is very welcome we have a consulate in Atlanta, as the area to be covered by the existing consulates ranges from the west to east coast. It appears that locating a consulate in Texas is to be considered, and I would appreciate hearing the views of Mr. Burgess and Mr Ó Floinn on that. Obviously, we will examine that when we are there, but it is the second largest state-performing economy in the United States, so that is something that needs to be examined. I know one of the key objectives was the restoration of our economic reputation, and I know officials have been at the core of that. I would like to get a little more feedback on it. I have a very positive view of the Global Irish Economic Forum. However, the participants who came to that meeting are extremely busy professionals in their own field. We should give them real projects. I would like more feedback on that. There is some information in the presentation. I ask for some practical examples of the way we are utilising that advocacy process in terms of our old economic partners such as the United States and Britain, but I am particularly interested to know about Brazil, Russia, India and China, the BRIC countries. The CIVETTS are being talked about also. They are the new developing markets made up of Colombia, Indonesia, Vietnam, Egypt, Turkey, Thailand and Singapore.

My final point is the need to strike a balance between developing new markets for Ireland and defending human rights. For example, we received briefings from Colombia today on the ongoing challenges regarding human rights. I note that Saudi Arabia is one of the Department's key targets in the future but Saudi Arabia is a key strategic ally of Bahrain about which there are serious concerns in terms of human rights.

As we are on the record I want to be clear. I have great appreciation for the work of our embassies overseas in terms of defending human rights. In all the countries I have mentioned and in others, the feedback from Irish non-governmental organisations is that our consulate staff are excellent and they are working with them to defend human rights. Our track record is rock solid in that regard. In terms of the past I refer to people like Mary Robinson and Seán MacBride. How do we ensure that in building new markets and new relationships we do not lose that strength, which is human rights protection and defence?

I thank our guest speakers and compliment them on their efforts and focus. In particular I draw attention to the necessity for this country, and this is being led by the Tánaiste, the Minister of State and the Department, to adopt an aggressive stance in international markets on behalf of this country. There is a greater responsibility on Ireland and on Irish representatives than was the case in the past. There is a huge lack of confidence internationally as a result of fiscal and economic crises in Europe but also globally, and in that regard there is a role now for smaller countries to play that was not possible some years ago.

In a time of economic stress and political instability small, stable economies can make an impact internationally above and beyond that normally expected of countries of their size. I compliment all concerned on their efforts to date in that area. I say that for a reason. There is a tendency internationally to write off small countries economically, but that is far from the truth and reality. Some very small countries have an economic impact in international markets far above their size and status, Taiwan being a classic example. The Chairman will be glad to know it is a country I have never visited but I know a little about it. The European Union expects leadership from countries like Ireland. The people of this country have shown their commitment to leadership by allowing themselves to be counted in, so to speak. They have done that without taking into consideration all aspects of the situation unfolding before them. These are serious economic times.

I would expect that our international representatives, at every location, are operating to the best of their ability with optimum use of the services and facilities available to them. Reference was made to sharpening. That is a well chosen word. We must be sharp, aggressive, penetrate more into these areas, be in the faces of the people who matter and be present at all times to ensure we cannot be spoken about without due reference to our existence.

I am concerned about the Düsseldorf reference. The previous ambassador, Dan Mulhall, established himself very well internationally and I am sure is still doing so, but I become concerned when the concentration of administration is in one location and we are in another location, or vice versa. I would like some information on that to be certain our representative there is in the best possible location to achieve the best possible results based on the degree to which we can afford to invest.

Regarding troubleshooting, issues arise occasionally that highlight strengths and weaknesses in our back-up systems. To what extent is there an ongoing evaluation of such stress points? How quickly can we respond because the speed with which we respond is a major issue as far as those around us are concerned?

My other point is on science and innovation in the development of an industrial strategy. Due to where we are now and because we face a great deal of international competition, it is of particular importance that our innovative and scientific sectors are operating to maximum strength, that they have access to all the necessary back-up required and that the opportunities are maximised whereby those interested in investing in this country are made aware we are available to work with them and for them in these areas.

I congratulate all concerned on the thrust towards new markets. It is no harm, however, to repeat the positive elements of what we are doing on a regular basis. There is enough negativity around. Every time one opens a newspaper or listens to a news broadcast, we hear of negative issues and negative attitudes, crises, mismanagement and other comments that do not engender confidence in any quarter. I am anxious we continue to use every possible opportunity - I know this is being done - to promote the positive, effective image of the Irish people and the Irish economy, especially at this time. If others want to opt out, that is their choice, but our position is that we are there and we intend to remain there.

Like the Chairman and other speakers, I welcome this distinguished and powerful delegation and thank the director general, Mr. Ó Floinn, for his clear presentation which gives the committee a useful and practical overview of the work being done.

I have a number of questions but I must apologise as this is a very full day for me and I may not be able to wait for the reply. I will, however, read it with great interest in the Official Report.

While I always listen with great respect and interest to what Deputy Durkan says, I wonder about taking a sharp, aggressive and in-your-face approach. I am not sure how that squares with diplomacy. My experience is that sometimes, particularly when one is trying to sell something, especially of a cultural nature, being sharp, aggressive and in-your-face may not always recommend itself to the person on the other side, although I suppose there are circumstances in which it is appropriate.

I have mentioned that this is a strong and quite numerous delegation. The Department was renamed to include trade, with which I do not have a difficulty. Trade is extraordinarily important in these difficult economic circumstances and those involved have my full support. In past times I have been - I will not use the word "employed" because I was not paid and I will not use the word "used" because it sounds as if I was abused - engaged in cultural matters with the Department which I was aware could have some degree of spin-off. I have no problem with that. I never had any problem with Bloomsday. I knew it would do good for the city. I was in China to initiate the first ever Bloomsday there. I was accused of vulgarising it but I do not mind. It does not matter because it did a certain amount of good work. One must be careful and this is why I caution the deputation about the approach. I am glad someone as sensible as Mr. Ó Floinn is in charge of the situation and has extended connections to Culture Ireland, which is a little adrift. I understand there is no director general and no director has been approached. Many of the cultural institutions on which we depend here at home are in very serious difficulty, including the National Library of Ireland, the National Archives of Ireland and so on. We need to have support at home as well as abroad.

I wonder about the comparative strength. Mr. Ó Floinn spoke of the restructuring which has been ordered. What is the relative strength between Mr Ó Floinn's section and the human rights section? It is notable we have the Department of Foreign Affairs and Trade but the term "human rights" is not mentioned in the title. There appears to have been a significant downgrading and I would be rather concerned if this were the case. This is where I agree strongly with my colleague from the other House, Deputy Mac Lochlainn. In these economic circumstances and with the priorities we necessarily have, it is easy for human rights to be elided or suppressed. For example, Bahrain was mentioned. Yesterday in the Visitors Gallery of the Seanad we had a brave doctor from Bahrain, one of several people who have been on trial. I understand there is a retrial on appeal at the moment. It was perfectly clear that one of the situations arose because the Royal College of Surgeons in Ireland was involved and the college did nothing to support these people. I understand the college was involved in the dismissal of certain staff in Bahrain, which is extraordinary and regrettable. The reason for this is because the college had a €17 million investment. What happens when there is conflict between our perceived economic interests and human rights?

I refer to another example at home. One need only look at the top of O'Connell Street where there is that extraordinary and disgusting exhibition of the human body. I am uncertain about the origins of these bodies but I understand they were bought from a Chinese hospital. Falun Gong has alleged these people were murdered by the Chinese Government. It is astonishing in a country that respects the human body, its integrity, the sanctity of life and so on that we are prepared to tolerate this. This revolting exhibition of people, who clearly never gave permission for their bodies to be exhibited in this way, has been supported massively by The Irish Times, RTE and everyone else - by the whole establishment. Perhaps it would harm Sino-Hibernian relations, however, if questions were raised, although I understand an American business person is behind the venture.

I am asking the moral question, which I realise is difficult. It is simply to encourage the deputation. I was one of the few members of Seanad Éireann who voted against the beef deal with Iraq, which the director general may be too young to remember. I was told by the Government side that it might be the moral thing to do but that we might be unable to afford that. The Government decided not to do the moral thing despite the Christian nature of our Constitution, and it went ahead and secured the beef deals. Saddam welshed on them in any event and, as a result, the export credit guarantees were called in and the Irish beef barons got more than £100 million. The taxpayer coughed up £100 million for doing the immoral thing.

I welcome the fact someone of sophistication and judgment is involved. This applies to all the people here, two of whom we have heard speak, and I know of the work of the others. This is a very sophisticated area where we should remain sensitive. I have wondered wryly about the Yeats exhibition, especially when the Irish Museum of Modern Art, IMMA, has been closed and stuck in a shed somewhere, as it were. Yeats spoke about fumbling in the greasy till. I will leave that thought with the deputation.

I add my voice to what has been said. I became a Member of the previous Dáil in June 2009 and I had the honour of serving on the Joint Committee on Foreign Affairs. The honour came from being in the presence of two very strong human rights activists, Senator Norris and our President, Michael D. Higgins. It was an interesting and at times disturbing committee of which to be a member because of the human rights cases that came before it. When I learned that trade was being tagged on to foreign affairs, I became a little alarmed. Then I reasoned that it might be an opportunity for Ireland to further its reputation. Let us face it: we have a very honourable and significant reputation in the humanitarian line and when it comes to the development aid budget. I consider the addition of the trade aspect to be an opportunity to apply the principles we use in the Irish Aid area to trade matters.

There are, however, several difficulties with the trade aspect and I share some of the concerns to which Senator Norris referred. Sometimes I wonder whether the words "ethics" and "business" can go together at all. An interesting briefing was provided last week and today on this area. It included climate change as well. This is a significant area for people doing business in countries in South America and Africa. We create the problem in our world and we expect them to pick up the bill in theirs. I hope the trade aspect has an opportunity in this sense.

This brings me to the issue of tax justice. There have been calls for tax justice but it appears they are not being heard. There have been calls for country-by-country accounting as well. The idea is that no one should use their businesses to find a tax haven somewhere else, not pay their just taxes in their own country and not carry on the taxes in the country where they are doing trade. Like others who listened to the story about Colombia this morning it was obvious to me that multinational companies have a good deal to answer for. One example involved Chiquita bananas having to pay €2 million because of what it had done in respect of a land issue.

We have an opportunity to lead by example. The delegation referred to departmental restructuring and the need to sharpen the departmental geographic focus on trade promotion in key countries and regional markets. I wonder about the role of staff given the emphasis on the trade aspect. Does this mean those of us pursuing certain human rights issues will not have the staff supports that would have been available in the past? The issues that arise are very serious and we wish to continue with them. Earlier, we were involved in human rights issues for prisoners in Northern Ireland. Given the emphasis on trade I hope it will not be difficult to continue the work on human rights as well.

I offer my sincerest apologies to the committee. I have not missed a committee meeting to date, but unfortunately the private briefing of the Minister for the Environment, Community and Local Government, Deputy Hogan, on local government reform was more important politically for me on this occasion.

The Chairman will be aware that I am glad to continue to encourage the committee to engage further in the detailed debate about its role. We have heard the sentiments of some of the speakers. I am mindful of those who have continuity as Members of Parliament and who remember other days when, in a sense, it was a committee of foreign affairs which dealt with or saw itself as an extension of our missionary role in Africa. Its activities related to the targeting of humanitarian aid and the development of the poorest communities, mainly in Africa. Now, it has this ugly capitalist or worldly title of "trade" which to some people is anathema and vulgar. There is an idea that we should have clean hands in dealing with these matters. I encourage the committee to carry on.

I have never been given a private briefing nor did I seek one on the purpose and role of the recall of our ambassadors throughout the world when the Government was formed. We had a great deal of work to do to carry out reform and to inform the world that Fianna Fáil and the Green Party no longer made up the Government, that there was a new brush and that it would sweep things clean. The Taoiseach and the Tánaiste brought in the ambassadors from throughout the world. I am unsure what type of pep talk they gave but I hope it was one along the lines that the country was in dire economic straits and the Government was seeking greater co-ordination between the embassies, officials, Bord Bia, Enterprise Ireland, tourism boards and all the groups which are ostensibly doing their best for Ireland, although, perhaps, not in a co-ordinated manner.

I welcome the fact "trade" has been added to the title of the foreign affairs committee. Some of my colleagues have expressed concern about the diminution of the role of the committee and Ireland's obligations to ensure fairness in the world, in trade deals and towards impoverished nations. There is nothing to fear.

With regard to the provision of aid, we will continue to carry an honourable flag very high in the international arena. We must, however, stop fooling ourselves. This is a country of only 4.5 or 5 million people. We are in dire economic straits and I encourage the delegates to redouble our efforts in building solid trade relations, particularly with China, with which we already have reasonably good relations. We have had many Chinese visiting us. I am not quite sure when we will be told the net benefit of their visits because they are coming in substantial numbers on a regular basis. We have not yet seen major Chinese corporations basing their headquarters in Dublin with a view to using this country as a base from which to sell on to America or into Europe. Yesterday, at the International Atomic Energy Agency, I heard a talk given by a Chinese academic on the role of China in 2030. Having listened to him, we need to redouble our efforts in getting on the right side of China.

The Chairman and other committee members, including me, also met the Colombian missionaries and heard about the very complex circumstances in that country. These complexities should not cause us to stand back and not to engage in trade or in developing and pushing trade links. Even Dublin City Council has an office of international affairs which the Department of Foreign Affairs and Trade is not using as effectively as it could.

China has phenomenal relations with Russia. I have a personal relationship with India through the Ireland India Council and we do our bit as individuals. We must redouble our efforts to target the BRIC countries and build proper consolidated trade links. I am delighted to see in the submission that links with South Korea and Saudi Arabia are now being developed. This is important. Saudi Arabia is a very interesting kingdom which is changing slowly; it may be opening up and looking for friends. I hope we can extend the hand of friendship to it.

In the past the committee was an extension of our missionaries in Africa. It can continue to be a more modern version of the Society of St. Vincent de Paul by becoming more engaged in trade and humanitarian links.

I am delighted the Deputy kept the political dimension out of his contribution. However, I know Senator Walsh will not take him up on it.

I welcome the delegation and apologise for arriving somewhat late. However, I was listening to the proceedings on the monitor and took note of the comments made by Deputy Eric Byrne. I also glanced over the submission made to the committee. I do not share in the bouquets passed across the table. I am concerned that the hyperbole which the Government uses to excellent effect is finding its way into the permanent government. The submission contains much that is aspirational and tells much about what we are doing, but there is nothing to indicate success from our investment and expenditure in this area. What system has the Department instituted to measure investment expenditure and the effort being made? We need to see tangible results. In my quick glance through the document I was unable to identify any such measurement. What value has the Export Trade Council added to date? What is the relationship between the Department and State agencies with responsibility in the economic areas? How is that relationship functioning in avoiding duplication of effort and expenditure, in sharing information and ensuring co-operation?

My final question gets to the core of the matter. We have heard about the emphasis placed on recalling ambassadors. I find this disappointing because it is not something that started last year. It started more than a decade ago when the then Taoiseach, Mr. Bertie Ahern, and Minister for Foreign Affairs, Mr. Dermot Ahern, introduced the idea that our embassies should be conduits in developing economic contacts and creating an economic advantage for the country. The idea did not meet universal support in the diplomatic corps. I assume this has been corrected and that everyone now embraces it fully. Will the delegates identify locations in the following three categories? First, which locations are yielding most benefits to Ireland from the point of view of trade promotion? Second, which missions are yielding little or no economic benefits? Third, which areas with potential have been identified which could prove useful to Ireland from a trade promotion and economic point of view and in which we currently do not have missions?

I ask these questions because it is important to gather that information to enable us to target scarce resources to best advantage for Ireland, something we have often been told we must do. I make no apology for saying our overriding priority must be economic development and growth and the creation of employment in Ireland. I know embassies have other functions which are also important, but this should be our priority and that of hard-pressed citizens.

I will not repeat what many others have said. We have been looking at the opening of consulates in places such as Texas. Our honorary consul in St. Louis, Missouri, Mr. Joseph B. McGlynn, has been doing an excellent job since his appointment by the late Mr. Jack Lynch. He has received Mr. Lynch's successors, including Mr. John Bruton, in St. Louis. He is not a full-time employee of the Department of Foreign Affairs and Trade, but he does the job because he wants to do it. I am sure there are many others throughout the United States who could be key assets if they were appointed as honorary consuls in the same manner as Mr. McGlynn. Such individuals would be more than willing to do the same work as him and have resources and connections that would be of huge benefit. For Irish people who visit St. Louis and businesses who are thinking of coming to Ireland from Missouri, he is their first port of call and a focus for them. The state of Missouri is equivalent to Slovenia and has a population as big as that of Greece where we have an embassy and a full staff complement. At very little cost, we could have someone like Mr. McGlynn in every state and large city in the United States who could act as a focus for the Department's efforts in seeking trade and investment and as a point of contact for Irish people travelling to the United States. I know this issue has been looked at and that there are concerns about how it could be rolled out. Is it something the Department is considering actively? Is it a credible and feasible proposal?

To be fair to our guests, Mr. Ó Floinn said the document provided merely an overview of the work of the Department. It is not intended to be an exhaustive account of its trade promotion activities.

Fair enough. I accept that the delegates may not be prepared for the following request, but can we receive a report on the positive results of the work of our embassies, not merely the functions attended and speeches made? I have political concerns and I will make those concerns known in another Chamber, but it is important to measure the benefits and that the service be assessed on its tangible successes.

We are preparing a report and what we have achieved will be recorded. We had to work for at least a year before starting to prepare a report.

This has been happening for more than a decade.

We are reporting on the benefits of the trade missions since this committee was established last year. I take a slightly different line from the Senator. Ireland's image abroad is very positive. Our missions abroad are very small, with only two to three people in each one, but they must compete with the big players. The United Kingdom for example has separate trade areas. We must look for business opportunities, because if we do not take up the opportunities some other country will and we will lose out. Trade missions generate substantial benefits. I meet the ambassadors from time to time, sometimes one-to-one or with other members of the committee. The ambassadors, especially those based in the Middle East, would love to see the Taoiseach or the Tánaiste and Minister for Foreign Affairs and Trade visit because they are aware of the benefits. We should invite foreign leaders to visit Ireland and exchange views. Trade missions at every level offer benefits and the results, for example in foreign direct investment, can be seen from the visits by the Taoiseach, Tánaiste or Ministers. Large foreign multinational companies have established themselves in Ireland as a result of long negotiations with Enterprise Ireland and the IDA. This does not happen overnight but takes time. I know from experience that our missions abroad work in conjunction with the IDA and Enterprise Ireland and achieve much with limited resources.

Mr. Colm Ó Floinn

Thank you, Chairman. I will deal with the human rights issue raised by Deputies Mac Lochlainn and O'Sullivan and Senator Norris. I assure the joint committee that there has been no diminution in the commitment of the Department of Foreign Affairs and Trade to the area of human rights. One of our five high-level goals is to contribute to international peace, security and human rights. The human rights unit has not been affected at all by the restructuring and has the same resources. We put ourselves forward as a candidate for election to the Human Rights Council. In a previous role, I worked on human rights in our mission in Geneva and across the board the diplomatic service is committed to human rights. We are as aware as members of the joint committee of the tensions that can arise between human rights and economic and trade objectives from time to time. However, may I assure members that our colleagues who are specialising in human rights are still in place and are still watching that space. The restructuring of the Department to which my colleague, Mr. Niall Burgess, and I both referred specifically reinforces the focus on all aspects of relationships with each country. For example, the Middle East unit will be looking at trade promotion in Middle Eastern countries but it is also looking at the concerns about human rights in co-operation with the specialised human rights unit.

Let me give a further reassurance to members who met a delegation today that raised concerns about the situation in Colombia. My division shares a floor with our Asia and Latin America unit and I saw people arriving here, who I am sure are the same people who came to see my colleagues in the Asia and Latin America unit. There is no wall between us and we are all working together on all of the high-level goals of the Department.

The issue of tax fairness in the operation of international or Irish companies was raised. Irish companies are obliged to operate by international law and the relevant Departments and units are very aware of that and will shine a light on any unacceptable activity by Irish companies. This would apply to anything to do with Irish aid in Africa as well. I would not be an expert on that area but if the Deputy wishes to raise a particular issue, we will respond to it.

I fully accept the point raised by Deputy Mac Lochlainn that other countries as well as Brazil, Russia, India and China, are important. It was Mr. Jim McNeill of Goldman Sachs, who I think first coined the acronym BRIC countries. The Minister of State with responsibility for trade, Deputy Joe Costello, led a trade mission to Turkey with over 20 Irish companies in March. The second tier of countries after the BRIC countries, such as Mexico, South Korea and Turkey are very much part of our trade strategy and many of the countries in the second or third tier are also priority countries. Our resources are limited and we cannot have missions everywhere. I was asked where we would ideally like to open a mission if we had the resources, and I have not forgotten that point, which I will address. My colleague, Mr. Niall Burgess, will address some of the other issues raised by Deputy Mac Lochlainn.

I thank Deputy Durkan for his kind comments. The ambassadorial and embassy drive to get out the good news about Ireland is regularly reported on. Let me assure him that we do a weekly summary. Deputy Durkan raised the question of co-location in Germany. One of the commercial capitals is Düsseldorf,where Enterprise Ireland and Bord Bia are located. The financial capital of Germany and of Europe is Frankfurt and the IDA is located there. Each agency has its own reasons for being in a particular place. Let me assure members the local market team in Germany is not inhibiting the team Ireland approach. The Irish ambassador to Germany, Mr. Dan Mulhall, gave us chapter and verse about how much time he is spending travelling by train around Germany with his State agency colleagues. The initiative is working. One must deal with the reality in a country like Germany. Another example is Brasilia, the capital of Brazil, which is inland but the commercial centres are São Paulo and Rio de Janeiro. In Australia, the capital is Canberra and the committee members will be aware of the major cities.

We have all had to learn lessons from the crisis that erupted a few years ago on the necessity for speed in responding to issues. We set up a special unit to deal with the departmental response and my colleague, Mr. Aidan O'Hara, is still in charge of that unit. We have it down to a fine art and work in close co-operation with our colleagues in the Department of Finance. There is a very active mechanism in place. I do not like using the word "rebuttal", but sometimes that is what it amounts to. A strategic communications unit, the body at the centre, was set up in the Department of the Taoiseach and Mr. Aidan O'Hara is the departmental representative on that body.

Deputy Durkan also mentioned science and innovation. Let me reassure him that we are getting the message out about science. Some of the material that Science Foundation Ireland puts out is very impressive, which we get through the diplomatic network. Our strengths are in genetics and material science and other work in the universities. I referred in my statement to the European Science Open Forum which will happen next month, and on which we have been working very closely with the scientific community. We examine new markets all of the time. To clarify, when I talk about priority markets I mean the markets that are identified by a range of State agencies according to their criteria. We see our role as putting the embassy platform at their disposal and work closely with them to develop markets.

Deputy Durkan said that he does not think there is a negative attitude to Ireland and I agree with him. Yesterday, we heard from some of our State agency colleagues. For example, in the United States, and Mr. Niall Burgess will talk about it more, there is an impression that this country is doing its best, it is working hard and that we are getting out of the mess we were in.

I shall turn to the comments made by Senator Norris. I know that he must leave but I shall address some of the points that he raised. However, I shall not comment on some of his comments because it would be inappropriate. Members will be aware that Culture Ireland is the subject of critical review at present, in common with other agencies. Whatever the decisions are about Culture Ireland in the future, the Department will continue to work closely with it. We think that its work and brand have been very important. Earlier I mentioned the Imagine Ireland programme in the United States. Obviously the Irish Presidency of the European Union next year means that Culture Ireland will be engaged in cultural work and the Department will try to compliment it with the modest resources that are still available. Under the relevant Act, Culture Ireland is now responsible for the promotion of Irish arts abroad. I think that Senator Norris talked about a previous era when the cultural relations committee was in the Department of Foreign Affairs.

One member of the committee thought that "sharpening" was the right word to use but Deputy Maureen O'Sullivan was a little concerned that it might mean that the Department was de-emphasising human rights. I hope that I addressed her point earlier.

Deputy Eric Byrne mentioned the ambassadors' conference and I can reassure him about the message that emerged. We have always promoted Irish trade and economics and conveyed that message through the embassy network. At the ambassadors' conference the Taoiseach and the Tánaiste sent the ambassadors back out into the field with a reinforced commitment to work on trade and promote Ireland. The best way to confirm that there is a strong focus on BRIC countries is to say, and I think I mentioned this in my statement, that the Taoiseach was in China for a trade mission. Three other Ministers have already visited there this year, the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, the Minister for Agriculture, Food and the Marine, Deputy Simon Coveney, and the Minister of State, Deputy Ciarán Cannon. Earlier I mentioned that the Tánaiste is expected to visit China in the autumn. More Ministers, including Deputies Reilly, Quinn and the Minister of State, Deputy Seán Sherlock, may visit China before the end of the year. The Ministers, Deputies Bruton and Coveney, may also make a return visit before the end of the year.

As regards the other BRIC countries, I mentioned that the Minister of State, Deputy Joe Costello, will go to Russia next week for a five stranded technology mission with a number of Irish companies and I shall accompany him. We hope that, in association with a visit by the President to Brazil in the autumn, there will be a strong trade mission accompanying him as normal. Perhaps the Tánaiste or Minister of State may lead it. Last November we visited South Africa with the Minister of State at the Department of Foreign Affairs and Trade and we go there again next November. There will be a mission to the Gulf states in the autumn and finally, in November, there will be a trade mission to India which is another BRIC country. There is a focus on the BRIC countries.

I wish to say something that was not directly addressed in any of the questions posed but I shall say it in passing. Last Thursday and Friday I accompanied the Tánaiste to London, as did Mr. Niall Burgess, and some of the business community, Irish and British, made the point to the Tánaiste and to ourselves that they were a little concerned that we might forget about the mature large markets on our doorstep. Of course we will not forget them. The point was made that a several percentage decline in trade with the United Kingdom would be disastrous whereas a slowdown in the development of trade with the BRIC countries would not be such a disaster at present. The other side of the coin is that our trade with the BRIC countries needs to increase dramatically. I want to emphasise and assure the committee that when we look at the priority countries that I mentioned, the mature and emerging markets, we are conscious that we need to nurture the large markets that we already have as well as grow new ones.

Senator Walsh asked about the measurement of results. The agencies are driven by targets in their own areas. For example, the IDA is target driven in terms of investment, the foreign direct investment people have specific monthly and quarterly targets, Bord Bia has food targets, Tourism Ireland has set targets for tourism numbers and Enterprise Ireland also has its targets. The formulation of the global trade strategy began under the previous Government and the present Government has adopted it. The strategy incorporates the ambitious targets of the agencies. For example, the IDA has an ambitious target of having 20% of greenfield investment from emerging markets by 2015. The Tánaiste chairs the Export Trade Council and its purpose is to adopt an overview of all of these targets. On the basis of what is presented to the council, he reports to Government. Based on what was said in February and against all of the numerical targets outlined in the strategy, he was able to report that progress was made in 2011. As members of the committee will be aware, indigenous exports of food and drink performed very well. Investment targets, both in new projects and in jobs created by Enterprise Ireland in IDA client companies, were exceeded and growth in tourist numbers was on track. Ambitious targets remain to be met and I have mentioned one of them in the IDA's sphere. Tourism Ireland has the ambitious target of attracting 8 million visitors here by 2015 at a time when consumer spending in some of our traditional markets, such as the UK and the Netherlands, is reducing and people think twice about trips abroad.

The Department of Foreign Affairs and Trade brings to the table an embassy platform. Earlier I mentioned, and the Chairman recognised the fact, that most of our embassies are small. We have seven embassies that consist of just one person but each embassy provides a platform. As my colleague, Mr. Niall Burgess has said, they must work on consular issues, look after citizens abroad and, in many cases, deal with foreign policy issues. All of them are trying to do their best to work on trade promotion issues and must work closely with the State agencies, the people with the targets. It is the targets that must be measured by each agency and then we try to bring it all together in the Export Trade Council. I hope that I have responded to Senator Walsh's question by emphasising the added value of the Export Trade Council.

We have been asked why the Export Trade Council does not meet every day or week. The reason is that we are trying to keep a high level of engagement, at the level of a Minister and CEO of a State agency. There are preparatory meetings, in between the main plenary meetings, that are chaired by my colleague, Ms Kay Coll, director of trade promotion which bring the Departments and agencies together.

The third question was on relations between my Department and the agencies. It has always been good and I hope that I have highlighted in my statement that it has never been better. One small concrete example is that I have a colleague from the IDA on secondment in my division, Ms Aisling O'Carroll, and she is present today. There is a reciprocal arrangement where a colleague from the Department works in the IDA's headquarters. Both the IDA and the Department are committed to maintaining the link. I meet my counterparts in the State agencies on a regular basis informally and we also bring everybody together in the Export Trade Council. Abroad our ambassadors in the 27 priority market countries meet all the time in the local market teams with the State agency representatives. I genuinely think I can assure the committee there is not an overlap. Ireland Inc. is operating on a very thin resource model abroad. Many of the State agency offices are small operations. For example, Bord Bia, one of the great success stories in food and drink, relies on our embassies in many of the markets in which they operate because it does not have that international presence. Everybody is working flat out. We are keen to avoid any duplication but also to take opportunities for expanding the Ireland House concept. Enterprise Ireland will soon move into our embassy in Stockholm.

Senator Walsh expressed concern based on an issue some years ago. I have been in the Department of Foreign Affairs and Trade for 35 years and I have never heard any colleagues complaining about doing trade work. As my Secretary General, Mr. David Cooney, said to the Committee of Public Accounts or this committee recently, one of the most exciting things an ambassador or a colleague abroad can feel is that they are bringing something to the Irish economy that will lead to the creation of jobs. By way of anecdote about my own experience, which I related yesterday to our colleagues who are going abroad in the summer and who are training in trade and promotion, I was dealing with political and human rights issues in Geneva in 1989 and, through various contacts, was instrumental in arranging a contract for canned fish from Donegal for a World Health Organization programme in the occupied territories in Palestine. That is a small example of something that brought a few hundred thousand euro to the economy. It is happening all the time, but with increased vigour in recent years, and is a central part of what the Department is about. I hope I have covered most of the points raised by Senator Walsh.

Just to identify-----

Sorry, Senator Walsh, please allow Mr. Ó Floinn to respond.

Mr. Colm Ó Floinn

I am happy to answer any supplementary questions. On the question of whether there are countries where we are not present and should be in ideal circumstances, the Department was obliged to review its international presence and tight resources last year. One of the factors examined was the economic benefit of the various missions, embassies, consulates and multilateral missions. Members will be aware of the results of that review following Government decisions. Certainly, in the trade promotion division, if I was to choose a country, it would be desirable that we had an embassy in Indonesia, a major emerging economy, where it is said there will be a middle class of 55 million people in the not too distant future. That is obviously a huge market. We cover Indonesia from one of our other embassies but it would be desirable, if resources were available, to have an embassy there. As the Tánaiste explained, however, when we go some way further in economic recovery, these issues will be examined. The two most recently opened embassies were almost exclusively driven by economic and trade purposes - the consulate in Atlanta, which Mr. Niall Burgess will want to speak about, and the embassy in Abu Dhabi in the United Arab Emirates. I saw the work that embassy is doing when on a trade mission to Saudi Arabia and Qatar last autumn. We have two people there, Ambassador Madden and a colleague who are doing great work on economic and trade issues there. I will stop there, with apologies because I know I probably have not answered every point raised by Deputies and Senators. I stand ready to remedy that if required to do so. Perhaps I can hand over to my colleague, Mr. Niall Burgess.

Mr. Niall Burgess

I will be brief and will respond to two or three points made in regard to the US. Deputy Tony McLoughlin asked about the Global Irish Network and the whole question of follow-up and concrete results. We have been learning in recent years through the management of the network. Concrete initiatives came out of the first global Irish forum. To some extent, The Gathering had its roots in that first forum. The work experience programme for Irish graduates in overseas markets also came out of that first forum. We recognised there was a need to keep driving concrete initiatives and results to ensure there was an adequate focus and a centre at Government level.

Following the second forum, an implementation group, chaired by Mr. Martin Fraser, Secretary General to the Government, meets periodically to review the initiatives from that forum. We have a certain prioritisation of initiatives from that forum, such as the Connect Ireland initiative which is targeting relatively small companies overseas which might create small numbers of jobs in Ireland but where we considered there was a niche that could be developed. There are a number of other initiatives along the same lines. As the network has grown to encompass around 330 members, we felt there was a need for a more focused discussion with representatives of the network. We now have an advisory group of the Global Irish Network that will meet in Ireland next month. The group has about 20 members from the network drawn from each of the key sectors and the key markets that will have senior figures from all of the main Departments involved. It is an ongoing effort to keep it focused and driven.

There is a soft side to the Global Irish Network that is important and does not manifest itself necessarily in specific initiatives or even in concrete outcomes that can be measured and that is the ability of the network to open doors. I know from my experience, having served for three years as Consul General in New York, that one has an access which is beneficial to the other agencies and one can reach people at a level in organisations which is helpful for the IDA or Enterprise Ireland to use afterwards. Everyone on the Global Irish Network has networks or contacts that can open doors for us. That low level aspect of the operation of the network is important.

The Deputy asked about Texas. Texas is the largest state in the United States. It is the second most populous state with a population of approximately 25 million. It has one of the largest populations of Irish-American ancestry, about 2.5 million. In terms of inward direct investment it is home to Dell and to Texas Instruments. I was looking at figures here and in the past year 300 jobs were announced out of Texas, approximately 300 the previous year and approximately 150 the year before that. It is one of the most rapidly growing and expanding areas of economic activity in the United States. Our Consul General in Chicago spends a great deal of time in Texas, and in trying to cover Texas one is talking about Houston, Fort Worth and Austin. There are distinct centres of economic activity in Texas. There is a strong and compelling argument for looking at how we could cover it more efficiently and adequately, given our resources, which are limited. That is something we are actively examining.

This goes to the comment Senator Daly made about our honorary consul network. I should have mentioned in my initial presentation that we have an honorary consul in Houston, Texas. In fact we have nine honorary consuls across the United States, in Denver; St Louis; Houston; Los Angeles; Naples, Florida; New Orleans; Seattle; Pittsburgh and Hawaii. Could we expand that network? Absolutely. We are looking at how we could expand that network. When I was based in the consulate in New York, I used to cover Pittsburgh and the consul of New York still does, even though Pittsburgh is 1,000 miles from New York and with infrequent air connections. It is also a ten-hour journey by rail. One cannot cover it adequately without local support. We recently appointed an honorary consul in Pittsburgh. There is scope for extending our consular service to the large Irish-American centres of population in upstate New York, in cities like Buffalo and Rochester but this is also about 800 miles from New York city and quite difficult to get to cover it as well.

We are looking at ways to expand that network, particularly in areas of economic interest. We have an honorary consul in Naples, Florida, however the area of greatest economic interest for us is probably between Fort Lauderdale and Miami, where we do not have an honorary consul. The key, of course, is finding the right person and as Senator Mark Daly rightly said, we found an outstanding Consul General in St. Louis several years ago, who has provided great service ever since. We are constantly on the lookout to expand that network and we should expand it significantly.

Does Senator Walsh wish to comment?

I appreciate the comprehensive response to my questions. I take the business view where one sets targets. They should be ambitious and what is achieved should be measured against them and one is judged on one's results. Mr. Burgess has outlined the targets, which in effect are what the agencies are doing, and I would like to see in a future presentation a list of the successful outcomes to show what is being achieved. It is not my style to criticise because it inhibits the setting of ambitious targets and people tend to settle for conservative targets in order to cover themselves. This is a process that needs to be driven.

The reason that I made those remarks at the start is that I am genuinely concerned about Government policy. The Government raided the pension pots of many people in the private sector with the introduction of the 0.6% levy, which we were told would be used for job creation, but there are fewer people in employment this year than were working 12 months ago. The money has gone into the Exchequer. There is an element of fooling the people, which must be cut out, because that will not resolve the difficulties we are in. That is a political point and I do not expect the witnesses to comment.

I like the fact that Indonesia has been identified as a growth area. I agree that Indonesia, with a population of 200 million is growing very rapidly and will be a major player in Asia and will be the third or forth largest economy in time. When the Tánaiste and Minister for Foreign Affairs and Trade last appeared before us, he identified South America as an area to consider. Perhaps the logistics do not lend themselves to trade with Ireland to the same degree and I would like to hear the witnesses comment on that.

Only one question was not answered, which I will put again. In the course of the presentation areas were identified where Ireland was accruing some benefit from its expenditure. In what areas do we have missions from which we are not getting an economic benefit? I understand there may be good arguments for retaining those missions but I am very conscious that when the embassy in Iran was closed, which we were told was for economic reasons, Iran was generating €82 million in trade with Ireland. Have we many mission with trade levels below €82 million and if so, how many and can they be identified? I appreciate that the delegation may not have that information to hand but I would appreciate if it could be provided to the committee.

As nobody is offering, I will ask Mr. Ó Floinn to make his final remarks.

Mr. Colm Ó Floinn

I am sure the Chairman would appreciate that I will do so reasonably briefly. I appreciate the point made by Senator Walsh on the question of targets. I mentioned that the State agencies have very specific targets, for example, the IDA may have targets of a certain number of incoming site visits, a figure for inward investment from particular countries and those are very important targets for the national economy. The way the Department of Foreign Affairs and Trade helps that is to provide a platform. My colleague, Mr Dermot Clohessy from the IDA spoke yesterday to our colleagues who are going abroad on postings, expressing the different role that the people in the Department of Foreign Affairs and Trade play, which is to open doors and facilitate, provide a platform, which are not always measurable in the same target driven approach that drives business or the State agencies. I hope the Senator will forgive me for saying that but that work is incredibly important to the IDA and Enterprise Ireland in terms of helping them to reach their targets.

We would like to have a bigger presence in Latin America. The ambassadors of Latin American countries based in Dublin made the point recently in an article in The Irish Times about the opportunities in America, of which we are aware, but we are unable to open new embassies at present for obvious reasons. We are also guided by our State agency colleagues. If they regard markets as priorities and thought there were opportunities in another Latin American country such as Chile, we would certainly take that into account if we were in a position to open new embassies.

Let me add, although we have not mentioned it today, that the Department has a very important Africa strategy of which members of the committee may be aware, with a strong trade element to it. Enterprise Ireland has opened its first office in the African Continent earlier this year in Johannesburg in close co-operation with our embassy. It was announced during our trade mission to South Africa last November. We have a network of 11 embassies in Africa and their traditional focus has been on Irish aid but they now have a mandate to get trade for Ireland. Our Irish aid programme remains untied and is not conditional on anything to do with economic objectives. The embassies are on the ground and have a very strong mandate in the current situation to do what they can to develop trade in the interim period in accordance with the McKinsey Global Institute report - Lions on the move: The progress and potential of African economies, which refers to an emerging middle class in Africa. I presume our State agency colleagues will want to expand their presence as well. We will work closely with them.

We will be able to provide the committee secretariat with the figures for trade with those countries. We have 73 missions abroad, 58 missions, ten consulates and seven multilateral missions. If I was to try to answer Senator Walsh's question now, I could say that trade is not attributable to the United Nations mission in New York or in Geneva or the permanent representation directly in Brussels, but nevertheless I do not think that anybody would argue that Ireland should not be present in the United Nations or in the European Union - or at least I hope so. Some of the missions, particularly the multilateral missions, by definition are there for reasons to do with other priorities but they all contribute to the standing of Ireland internationally and that standing includes our economy.

I thank Mr. Ó Floinn for that response. May I add that the committee invited the African ambassadors to come to a meeting for Africa Day. While much of the meeting was taken up with aid, trade was mentioned. It would be my intention - I am sure members will support me - that as part of this report we would invite the Latin American ambassadors who are based here to appear before this committee to discuss trade with us. As part of our report, we will be inviting the IDA, Enterprise Ireland, the Irish Exporters Association and other relevant bodies that are working abroad. We expect to have our comprehensive report prepared by next year. The publication of our report is timely as it will be two years since the remit for trade was transferred to the Department of Foreign Affairs. We take our role very seriously.

I thank the officials for attending today and for setting the scene for our examination of trade promotion and the role of the Department of Foreign Affairs and Trade in our economic recovery. I hope the committee's report will contribute constructively to its ongoing work.

The joint committee went into private session at 4.25 p.m. and adjourned at 4.50 p.m. until 2.15 p.m. on Thursday, 14 June 2012.
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