Exports to UK “Collapse “Continues on Back of Falling Sterling

The plight of indigenous exporters who trade mainly with the UK has reached catastrophic proportions according to the IEA. John Whelan Chief Executive of the Irish Exporters Association (IEA) stated today (6th October);

“Continued action by the Bank of England to depreciate sterling is causing grave damage to our indigenous export businesses who traditionally rely on the UK markets for their sales.’’

The IEA commentary shows that sterling at today’s exchange rate with the euro is 18% below the rate this month last year.

The IEA initial figures for exports to the UK in (July/August/September) Quarter 3 2009, are shown to be down 23% on the same period last year. This represents a significant worsening of the situation compared to the first half of the year when exports to the UK were down 11% over the prior year.

John Whelan stated, “The current sterling to euro exchange rate has made it impossible for many Irish companies to continue trading with the UK.”

He went on to say, ‘’if sterling valuation continues to be undermined by the Bank of England quantitative easing process, then serious long term damage will be done to the indigenous export sector in Ireland and the many jobs depend on it.’’

The IEA stated that it is essential that the Governments Employment Subsidy Scheme (ESS) fund to be issued to approved companies urgently. The IEA state that due to restrictions on the scheme many companies who would like to avail of the ESS fund were not able to do so. John Whelan called for the ESS fund to be re-opened for fresh applicants , if the original identified 27,400 vulnerable jobs are to be protected, in the export sector.

John Whelan concluded by saying as long as the UK Government continue with quantitative easing to help UK exports viable, the Irish Government will have to continue its stimulus measures to support the Irish export industry.


ENDS

For further information contact:

Mr John Whelan

Telephone:087 9271243

Email: jfwhelan@irishexporters.ie