Madam, – Referring to John McManus’ column about the importance of credit for exporters (Business Opinion, May 18th), it is hard to understand why the Tánaiste is so reluctant to reintroduce an export credit insurance scheme, given the very difficult situation now faced by our exporters.
A scheme whereby exporters could offer medium-term credit to their customers in export markets, with payment guaranteed by an insurance scheme, would vastly improve their competitiveness and would help to combat the low value of the US dollar and sterling.
The previous scheme was abolished in the wake of the beef tribunal following widespread abuse of the scheme by certain exporters, as the Department of Enterprise, Trade and Employment would be well aware, so lessons learned previously would have to be applied.
Ireland is the only EU member- state without a State export credit insurance scheme although we export goods and services to the value of some 80 per cent of Gross National Product.
Such a scheme could be provided at very low cost to the Exchequer (or might even make a small profit) and would be of considerable help in sustaining exports and jobs in the exporting sector. – Yours, etc,