Dáil Éireann - Volume 445 - 11 October, 1994

Written Answers. - Exchange Rate Fluctuations.

58. Mr. Flanagan asked the Minister for Tourism and Trade his views on the [1012] impact of the sterling and dollar exchange rates against the Irish punt on Irish exports; and if he will make a statement on the matter. [662/94]

Minister for Tourism and Trade (Mr. McCreevy): The current business environment for Irish exporters is more favourable than for some time, with low interest and inflation rates at home, and economic recovery underway in our principal markets. These factors have helped ensure that the present rate at which the Irish pound is trading against Sterling and the Dollar is not placing any undue burden on our exporters.

However, as the 1992-93 currency crisis demonstrated, we cannot afford to be complacent and must be ever-vigilant. This is why I continually exhort firms to take steps towards improving their treasury management capability.

An Bord Tráchtála have already held a number of regional seminars on treasury management, to alert firms to the need for taking preventative steps and to advise them on the type of options open to them.

In addition, a small expert group has been established, whose main job is to advise “best practice” for small and medium sized enterprises in the treasury management area. The group will have particular regard to the sectors perceived as being most vulnerable, including the food, clothing and furniture industries.