The Irish Farmers Association and the Irish Exporters Association held a meeting with Tanaiste Mary Coughlan yesterday to discuss the need for a Sterling Equalisation Support Scheme to protect exports and jobs.

Speaking after the meeting, Liam Shanahan, President of the Irish Exporters Association said there had been a constructive discussion with the Tanaiste and Minister for Enterprise, Trade and Employment Mary Coughlan on the need for urgent Government action to protect exporting jobs.

Liam Shanahan said:

"We impressed upon the Tanaiste 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."

IFA President Padraig Walshe said:

"The key message we delivered was the need for immediate action by the Government. The Tanaiste acknowledged the difficulties that exist at the moment and gave a commitment to examine our joint proposal. Across a range of exports � dairy products, beef, mushrooms � there is severe pressure because of the current exchange rate. We need urgent action to safeguard the exporting sector."

The agri-food sector has suffered more than most in the current downturn and is now faced with an unviable exchange rate with Sterling. 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 has been submitted to the Department of Enterprise, Trade and Employment and Government for immediate implementation.

The NTMA (National Treasury Management Agency) is the body we are proposing to act as guarantor as it has a requirement to purchase sterling, and could act as a counter-party to the exporting businesses which 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.

The IEA president went on to say:

"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. The total 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."

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."

Ends.

Contact: Niall Madigan 086 8228635

Morag Devins 086 2633940