Farmers and exporters in joint call for sterling equalisation scheme

THE Irish Farmers Association and the Irish Exporters Association held a meeting with Tánaiste Mary Coughlan and Agriculture Minister Brendan Smith yesterday to discuss the need for a sterling equalisation support scheme Exporters association president, Liam Shanahan, said afterwards there had been a constructive dialog on the need for action to protect exporting jobs.

“We impressed upon the Tánaiste and Minister Smith the importance of maintaining a competitive exporting sector.

“Our traditional exporting industries, including the agri-food industry, are being undermined by the 20% depreciation of sterling since the end of 2007.

“Unless action is taken by the Government by implementing a sterling equalisation fund, 13,500 jobs in exporting sectors will be lost and the recessions will be more protracted,’’ he said

IFA president Pádraig Walshe said the key message delivered was the need for immediate Government action.

“The Tánaiste acknowledged the difficulties that exist at the moment and gave a commitment to examine our joint proposal and bring forward practical and workable solutions.

“Across a range of exports – dairy products, beef, mushrooms – there is severe pressure because of the current exchange rate.

“We need urgent and decisive action to safeguard the exporting sector. We are looking at widespread exposure by a very wide range of export companies in both manufacturing and services companies to the collapse of sterling.”

Mr Walshe said the total export sales exposure of such companies exporting to Britain is €7 billion.

Up to 23,500 jobs are directly or indirectly linked to the trade.

The IFA leader said the agri–food sector has suffered more than most and is now faced with an unviable exchange rate with sterling.

“At £0.90 average exchange rate to the euro in the last few weeks, €1bn of our €3bn of agri-food exports to Britain will be vulnerable, and 4,400 jobs are under imminent threat,” he said.

The joint proposal, which sets out the precise workable operation of a sterling equalisation support scheme, has been submitted to the Department of Enterprise, Trade and Employment and to the Government.