More help needed as exports set to rise

THE overall value of Irish exports should rise by over 3% this year, but more needs to be done to support the growing services sector, according to the industry’s main representative body.

In its latest half-year report, the Irish Exporters Association (IEA) has forecast a 3.4% rise to around €154 billion in the value of exports of goods and services out of Ireland this year.

While welcoming the growth, the IEA has warned that a translation into more jobs may not become a reality until “some time in 2011” and that more needs to be done to turn the upswing into real sustainable export-led growth.

However, the association has also forecast that if Ireland can maintain its momentum in restoring lost competitiveness the export increase should lead to as many as 24,000 jobs being created next year.

In a bid to sustain growth the IEA is calling on the Government — specifically through Batt O’Keeffe’s Department of Enterprise, Trade and Innovation — to introduce an ‘export outreach voucher scheme’, aimed at being an incentive to more services sector exporters to venture into more international markets.

The services sector is now clearly leading the way, in terms of Irish export growth — rising in value by €2.2bn, to €34.6bn, in the first half of this year.

According to IEA chief executive John Whelan: “As the economy recovers from the worst recession for 80 years it faces a range of challenges that require ambitious policy responses and novel types of incentives. Many services companies who have only traded on the home market are now struggling and shedding jobs. With the right assistance into international markets, they could be critical drivers of growth and job creation.”

An IEA update said that Irish merchandise exports rose by 5% on the previous quarter, while the Irish agri-food sector returned to growth (up 3% year-on-year in the second quarter).

“The encouraging signs are welcome, but there are still a number of obstacles to be overcome before these green shoots turn into real, sustainable export-led growth for the Irish economy,” Mr Whelan added.