THE IRISH Exporters’ Association chief executive, John Whelan, has called on the Government to bring forward €50 million earmarked for next year’s Enterprise Stabilisation Fund to help support exporters affected by the current sterling valuation.
Mr Whelan said that the situation was “unprecedented” and could prove catastrophic if the Government did not implement special stimulus measures to support exporters.
“The question is very much whether they can afford to keep supplying into the UK market,” Mr Whelan said.
He called for the Government to introduce “special urgent measures” to address the problem.
He said that the full €100 million earmarked under the Enterprise Stabilisation Fund over the next two years should be spent this year instead, and he and called for the Employment Subsidy Scheme to be reopened urgently for applications to protect affected businesses.
He said the Government’s planned Exports Credits Insurance Scheme should be implemented as soon as possible if Irish exporters were to move away from their reliance on the UK market.
Sterling was trading at just over 93 pence against the euro at close of business yesterday, falling back after reaching levels of over 94 pence on Tuesday, a six-month record.
However, even at 93p, Mr Whelan said that the value of Irish exports was still 21 per cent lower than a year ago.
The Small Firms Association said that the valuation posed a “grave difficulty” for small businesses.
The director of the association, Patricia Callan, said that the situation was a big concern for Irish businesses.
She said that the Enterprise Stabilisation Fund, designed to provide direct financial support to eligible internationally trading enterprises would provide just €50 million in each of the next two years, was “a drop in the ocean”, adding that the Government needed to do more to support exposed companies.
Ms Callan said that the food and drinks industries were particularly affected by the sterling valuation. An estimated 43 per cent of exports from the sector go into the UK.
