Head of exporters' association highlights 'vital' role of Europe

IRELAND’S EXPORT industry would die without Europe, Liam Shanahan, chief executive of the Irish Exporters’ Association (IEA), has warned.

Speaking at the IEA annual president’s lunch yesterday, Mr Shanahan said that Ireland’s participation in Europe was vital to our economic well-being, and emphasised the importance of a Yes vote in the Lisbon Treaty referendum in October.

“It’s not a question of a grey, complicated argument,” Mr Shanahan said, referring to the Lisbon Treaty.

“It’s simply a question of our economic well-being. If we don’t have a resounding Yes this country’s in deep trouble.”

Ireland exports 80 per cent of all goods and services produced in the country, and close to 50 per cent of this is bought by the European market (excluding the UK).

“European customers are the lifeblood of our export sector,” he said.

“For businesses and for workers, Europe means we still have a future.”

A recent survey of IEA members found that 96 per cent of respondents believe that membership of the EU is important to their business.

Earlier this year the IEA warned that job losses in the export sector could rise by 91,000 this year. Mr Shanahan confirmed yesterday that this projection still stood.

The IEA forecasts a 13 per cent fall in export outputs in 2009, a decline that is expected to continue into next year.

He said although international markets have started to show some signs of recovery, we were not participating in any upturn yet, and credit remained – to a large extent – unavailable to the IEA’s members.

“There are still structural problems causing difficulty here in Ireland,” he continued. “Our cost base is still too high.”

Export competitiveness, he said, must be restored through a downward adjustment in pay and domestic prices.

European export market facts

Irish exports have grown more than 100-fold since joining the EU in 1973

Since 1973, the percentage of Irish exports being sold to European countries (other than the UK) has risen from 21 per cent to 46 per cent

Foreign direct investment in Ireland grew from €17 million in 1973 to more than €31 billion in 2007

Ireland exports 80 per cent of all goods and services produced here. Europe is our biggest customer.

* Statistics taken from the Irish Export Association's new brochure, It's Europe, It's Exports