2009
PRESS RELEASE
Joint Press Release
Irish Exporters Association and the Irish Farmers Association, in an unprecedented strategic partnership move announce the need for a
> Sterling Equalisation Support Scheme to Safeguard Exports, particularly in the agri-food sector; and an
> Export Credit Insurance Trade Facilitation Scheme
At the joint press conference, the IFA and the IEA stated that the proposed Sterling Equalisation Support Scheme was essential to prevent widespread loss of exports and jobs, particularly in the agri-food sector, which was heavily dependent on the UK market.
Liam Shanahan, IEA president stated at the conference:
"National economic recovery depends on maintaining a competitive exporting sector, but the current reality is that Ireland's 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."
The IEA president went on to say:
"We are looking at widespread exposure by a very wide range of export companies in both the manufacturing and services sector to the collapse of sterling. The total at risk export sales exposure of manufacturing and services companies to the UK is €7billion. At risk are 13,500 jobs in export companies. A further estimated 10,000 jobs would be indirectly affected, bringing the total to 23,500."
IFA President Padraig Walshe said:
"The agri-food sector has suffered more than most in the current downturn and is now faced with an unviable exchange rate with Sterling. Across a range of exports � dairy products, beef, and mushrooms � there is severe pressure because of the current exchange rate."
"In 2007 Ireland had a competitive exchange rate with sterling of �0.68 = �1. In the course of 2008, in a deliberate policy by the UK Government to gain competitive advantage, sterling fell from �0.73 against the euro at the start of the year to �0.98 at the end of the year and is now at about �0.90. At �0.90 average exchange rate to the euro in the last few weeks, €1 billion of our €3 billion of agri-food exports to the UK will be vulnerable, and 4,400 jobs are under imminent threat."
The joint proposal from the IEA/IFA sets out the precise workable operation of a sterling equalisation support scheme, and is being submitted to Government for immediate implementation.
The Exchequer via the NTMA (National Treasury Management Agency) has a requirement to purchase sterling and could act as a counter �party to exporting businesses who are selling sterling. The key requirement is that the exchange rate for the exporter would be capable of being fixed at �0.80 to the euro.
Note: details of the Scheme are available from IEA contact details at end of this release.
Padraig Walshe concluded on the Sterling Equalisation Scheme by stating:
"While the proposed scheme may involve some cost to the Exchequer indirectly through the NTMA, the cost of doing nothing would be many times greater. Taking the Government's own figure that every 1,000 people being made redundant costs the Exchequer �11 million, the loss of 23,500 jobs would have a cost to the Exchequer of almost �260 million, and of course the human cost of becoming unemployed in the midst of a national and global recession in incalculable.�
Export Credit Trade Facilitation Scheme
Both the exporters and the IFA went on to stress the rapidly deteriorating credit availability problems affecting exports, following the de-rating of the risk profile of most business not only in the USA, as well as across Europe, Asia and Africa, but also in our biggest market, the UK.
Both bodies advised of new and extended ��state backed credit insurance schemes�� announced in France, the UK, Belgium and Portugal in the past few weeks.
In launching the joint Export Credit Trade Facilitation Scheme, Liam Shanahan stated:
"Irish Exporters are currently at a competitive disadvantage following the introduction of these new credit insurance schemes, adding to the existing State-funded schemes in these countries. It is therefore essential that the Government act immediately to introduce similar trade credit facilitation here in Ireland."
"The IEA/IFA have devised the type of scheme suitable and necessary to support Irish exporters to help get through the current extremely difficult international environment. And we can now announce today that we have the support of the three international insurance underwriters - Coface, Atradius, and Euler- Hermes to introduce the scheme in Ireland, if the Government will offer the same partial guarantee as that given to them in France and the UK."
IFA President Padraig Walshe concluded on this subject by saying:
"In the past export credit insurance has been of major assistance to agri-food exporters in particular, as exporters in the sector pushed into diverse international markets. In these difficult times, new tools are needed to assist the sector renew its efforts in moving into new markets. The Export Credit Insurance Trade facilitation scheme being introduced here today, has all the makings of a key support tool, without the exposure to the State."
Note; Details of the Export Credit Trade Facilitation scheme are available from IEA contact details at end of this release.
Ends.
Contacts for further info;
John Whelan, CEO, Irish Exporters Association 087 9271243
Joint Press Release
Irish Exporters Association and the Irish Farmers Association, in an unprecedented strategic partnership move announce the need for a
> Sterling Equalisation Support Scheme to Safeguard Exports, particularly in the agri-food sector; and an
> Export Credit Insurance Trade Facilitation Scheme
At the joint press conference, the IFA and the IEA stated that the proposed Sterling Equalisation Support Scheme was essential to prevent widespread loss of exports and jobs, particularly in the agri-food sector, which was heavily dependent on the UK market.
Liam Shanahan, IEA president stated at the conference:
"National economic recovery depends on maintaining a competitive exporting sector, but the current reality is that Ireland's 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."
The IEA president went on to say:
"We are looking at widespread exposure by a very wide range of export companies in both the manufacturing and services sector to the collapse of sterling. The total at risk export sales exposure of manufacturing and services companies to the UK is €7billion. At risk are 13,500 jobs in export companies. A further estimated 10,000 jobs would be indirectly affected, bringing the total to 23,500."
IFA President Padraig Walshe said:
"The agri-food sector has suffered more than most in the current downturn and is now faced with an unviable exchange rate with Sterling. Across a range of exports � dairy products, beef, and mushrooms � there is severe pressure because of the current exchange rate."
"In 2007 Ireland had a competitive exchange rate with sterling of �0.68 = �1. In the course of 2008, in a deliberate policy by the UK Government to gain competitive advantage, sterling fell from �0.73 against the euro at the start of the year to �0.98 at the end of the year and is now at about �0.90. At �0.90 average exchange rate to the euro in the last few weeks, €1 billion of our €3 billion of agri-food exports to the UK will be vulnerable, and 4,400 jobs are under imminent threat."
The joint proposal from the IEA/IFA sets out the precise workable operation of a sterling equalisation support scheme, and is being submitted to Government for immediate implementation.
The Exchequer via the NTMA (National Treasury Management Agency) has a requirement to purchase sterling and could act as a counter �party to exporting businesses who are selling sterling. The key requirement is that the exchange rate for the exporter would be capable of being fixed at �0.80 to the euro.
Note: details of the Scheme are available from IEA contact details at end of this release.
Padraig Walshe concluded on the Sterling Equalisation Scheme by stating:
"While the proposed scheme may involve some cost to the Exchequer indirectly through the NTMA, the cost of doing nothing would be many times greater. Taking the Government's own figure that every 1,000 people being made redundant costs the Exchequer �11 million, the loss of 23,500 jobs would have a cost to the Exchequer of almost �260 million, and of course the human cost of becoming unemployed in the midst of a national and global recession in incalculable.�
Export Credit Trade Facilitation Scheme
Both the exporters and the IFA went on to stress the rapidly deteriorating credit availability problems affecting exports, following the de-rating of the risk profile of most business not only in the USA, as well as across Europe, Asia and Africa, but also in our biggest market, the UK.
Both bodies advised of new and extended ��state backed credit insurance schemes�� announced in France, the UK, Belgium and Portugal in the past few weeks.
In launching the joint Export Credit Trade Facilitation Scheme, Liam Shanahan stated:
"Irish Exporters are currently at a competitive disadvantage following the introduction of these new credit insurance schemes, adding to the existing State-funded schemes in these countries. It is therefore essential that the Government act immediately to introduce similar trade credit facilitation here in Ireland."
"The IEA/IFA have devised the type of scheme suitable and necessary to support Irish exporters to help get through the current extremely difficult international environment. And we can now announce today that we have the support of the three international insurance underwriters - Coface, Atradius, and Euler- Hermes to introduce the scheme in Ireland, if the Government will offer the same partial guarantee as that given to them in France and the UK."
IFA President Padraig Walshe concluded on this subject by saying:
"In the past export credit insurance has been of major assistance to agri-food exporters in particular, as exporters in the sector pushed into diverse international markets. In these difficult times, new tools are needed to assist the sector renew its efforts in moving into new markets. The Export Credit Insurance Trade facilitation scheme being introduced here today, has all the makings of a key support tool, without the exposure to the State."
Note; Details of the Export Credit Trade Facilitation scheme are available from IEA contact details at end of this release.
Ends.
Contacts for further info;
John Whelan, CEO, Irish Exporters Association 087 9271243
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