‘Neglected’ exporters face crisis
According to the president of the Irish Exporters Association, Brian Ranalow, the difficulties facing exporters seem to be neglected despite their importance to the Irish economy. He told the association’s annual lunch yesterday, that the country was facing another year of declining exports to its major markets if current trends continue.
Last year was the slowest year of growth for Irish exports in a decade and this year the outlook, even with half the year to go was looking quite gloomy.
“Exports for the year to date are running 20% below last year and to our most important market, the UK, they are down by 45%, said Mr Ranalow.
Last year exports to Britain rose by only 6% and by 7% to America, our second-biggest market.
The fall-off in exports, if it continues at its current pace, will see Irish exporters can expect to lose up to 18.7 billion in the value of exports this year because of high inflation and poor transport infrastructure, he added.
Exports have been hit also because of the sudden and sharp increase in the value of the euro against the dollar and, most importantly, against sterling.
But Mr Ranalow highlighted issues the government have not tackled affecting exports.
Specific measures must be introduced to improve the logistical efficiency of exports. “We have the highest inflation in the EU and despite the prioritising of inflation control as a key deliverable of Sustaining Progress, to date no action has been taken by government,” said Mr Ranalow.
Addressing an audience including Minister for Transport Seamus Brennan, Mr Ranalow said that tolls on roads and bridges that impact the freight transport sector were effectively a toll on international trade.
Currency movements have also hit exports, he stated. In the past year the dollar has lost over 20% against the single currency, making Irish exports more expensive, while the same thing has happened against the British pound.
Business groups have warned that the effects of the strong euro and high inflation will cost 500 jobs a week in the Irish economy.
Mr Brennan said he was committed to batter road infrastructure in the country through a number of options, including public-private partnerships and tolling.
He has held discussions with the National Pension Reserve Fund regarding the possible sale or leasing of the Dublin Port Tunnel and the M1 to develop additional funding that would allow for progress on building motorways to Cork and Galway.
