Enterprise Ireland says results point to strong economy

THE CONTINUED strong growth in exports by Irish companies last year show the fundamentals of the economy are strong, according to Enterprise Ireland.

Speaking at the publication of the State development agency’s annual report, chief executive Frank Ryan claimed figures from the exporting companies it supports do not suggest the country is in a recession.

“Enterprise Ireland-supported companies are not in recession,” said Mr Ryan. “The mid-1980s are irrelevant to what is happening in the Irish economy today.”

His bullish prognosis is based on data showing the agency’s client companies generated export sales of €13.181 billion during 2007. Of this figure €1.445 billion was defined as new export sales.

Employment at agency-backed firms stood at 153,670 at year-end, a net gain of 1,321. These exporting firms also spent €16 billion on home-sourced goods, services and payroll last year.

Although Enterprise Ireland’s strategy for the next three years involves a focus on emerging economies such as Brazil, China and Russia, Mr Ryan pointed to the strength of trading with our traditional partners.

While the value of the dollar fell by over 9 per cent last year, the value of Irish exports to the US was up by 11.1 per cent. Mr Ryan said an 8 per cent increase in sales to Germany was a result of Enterprise Ireland focusing efforts on the euro zone once the dollar began to weaken.

He was also upbeat about the agency achieving the targets set out last year in its 2008-2010 strategy. These include generating new export sales of €4 billion, growing the number of exporting firms with sales of over €20 million by 20 per cent and supporting more firms based outside Dublin.

“We will make it happen,” said Mr Ryan.

Tánaiste and Minister for Enterprise, Trade and Employment Mary Coughlan said the performance by Enterprise Ireland-backed companies showed Irish firms were adept at handling change.

Ms Coughlan said “measured and prudent” actions were required to consolidate the economic gains of recent years. Although she would not confirm if Enterprise Ireland would face a cut in funding, Ms Coughlan said the Government would continue to spend “where we can support and develop innovation”.

Last year Enterprise Ireland received €273 million in exchequer funding. It spent €266 million, of which €146 million was financial support to industry and €108 million went on administration, operations and promotion.

The agency invested in 101 businesses last year in exchange for shares, up from 89 in 2006. It realised €22.4 million from share sales, returns from venture capital funds and redemption of shares.