The IEA today (10th Nov) responded to the announcement from the Tanaiste that 453 companies had been approved for support under the Employment Subsidy Scheme to support the struggling export sector and prevent further job losses by saying:

  • The jobs crisis has deepened since the E.S .Scheme was announced in August
  • Many export companies did not apply because of the restrictive rules and the short time frame for applications of 4 weeks.
  • The allocation of only 27% of the approved fund of €250million in this first round should be taken as a clear indication that the application rules need to be widened if the remaining 17,000 jobs at risk in the export sector are to be protected.
  • The original intention of the Scheme must also be focused on when drawing up the new rules for a second round- that industry would be enabled through the scheme to keep the skilled workforce in place in export companies so that they could take advantage of the return to growth in international markets, once the recession ended.

John Whelan, CEO of the Irish Exporters Association, stated:

“Export companies have suffered further blows to their ability to sell on export markets because of the continued strengthening of the euro against Sterling and the US Dollar. Hence, there are now many more export oriented companies in critical need of funding from the Employment Subsidy Scheme than when the Exporters made their case for support at the beginning of the year. There is an urgent imperative to re –opened without delay, but with new wider application rules.”

John Whelan further stated:

“The first round ES Subsidy payments were made on the basis of supporting one job for every 5 in employment. If this ruling is left in place for further rounds of the Scheme then it will not archive it’s objective. Effectively, any company employing less than 77 employees need not apply, based on the first round.”

“Equally”, he went on to say “if the ruling of a minimum of the 30% of sales in the applicant company must be in exports, then the scheme will not reach a very wide range of excellent companies who export a quarter of their sales, and have the potential to export bigger proportions of their output in the future.”

He concluded by saying:

“The Government must get real when it looks at the export sector; the vast majority of indigenous Irish companies employ less than 50 people and export in sporadic percentages below 30%.”

“Exporters are facing an avalanche of market losses in international markets, due to adverse exchange rates, customers’ bad debts and falling consumer demand. A realistic enterprise export stimulus package released urgently by government will save many more jobs in the short term and export markets for the long haul.”

END

For more information, please contact John Whelan as below:

Phone: 01 661 2182

Mobile: 087 927 1243


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