Address by Mr. Noel Treacy. T.D.,Minister for Science, Technology and Commerceat the Gala Dinner for Participating Companies and Guests at the Chamberlain Tower Hotel, Birminghamon Tuesday, 17th October, 2,000

I have great pleasure in welcoming everybody here this evening and I would like to wish the sixteen Irish supply companies and the thirty-one UK healthcare buyers every success during their series of business meetings here tomorrow.

This is the first time that Enterprise Ireland has undertaken an initiative of this type in this market sector where innovative Irish healthcare and medical product companies are matched to UK healthcare buyers in a series of pre-arranged face-to-face meetings.

Our objective is to assist the Irish companies develop their export potential in the UK market through finding out, at first hand, what exactly the UK specifier is looking for and positioning themselves to respond competitively to those requirements.

Irish companies which can demonstrate all of the product essentials and, in addition, offer irresistible extras, whether through cost savings, technological innovation, better delivery times, and/or faster response times are all well positioned to seize opportunities in this market sector.

The interest and involvement in this event by Irish companies and UK healthcare buyers reflects not only the fast pace of growth in the healthcare sector but also the importance of the UK market for Irish companies

Ireland and Britain are now doing more business together than ever before in trade, investment and tourism. Two-way trade between Ireland and Britain is worth over £16 billion annually and continues to grow steadily. Britain is the biggest customer in the world for Irish goods and services and Ireland’s largest export customer.

Ireland is Britain’s leading international market with the average Irish consumer buying over seven times the value of British goods compared with anywhere else in the EU. Irish exports to Britain were traditionally agricultural produce, but today, the fastest growing area of our export trade is in IT, software, electronics, telecommunications and other high-tech products and services.

This reflects the current patterns of development in the Irish economy. Ireland is now one of the most vibrant economies in the world and our performance is unmatched among industrialised countries. In the past 10 years, Ireland has out-performed all other industrialised economies with a growth rate of three times the European average.

A major factor in Ireland’s economic performance has been its outstanding levels of export growth. In the six-year period 1994-1999, Irish merchandise exports recorded an average growth rate of almost 16%. This was more than double the OECD and EU averages and the 3rd highest overall in the 29-member OECD.

As a result of Ireland’s campaign to attract overseas investment, over 1,000 multinationals have established with us primarily in the high tech sectors and especially in the software, telecommunications, e-business and electronic areas. One could say that Ireland has in effect bypassed the industrial revolution and transformed itself from a primarily agricultural base into a high tech supply source.

This investment provided a stimulus for Irish entrepreneurs who became aware of the profitable opportunities available to supply multinational companies with materials, services and components. A thriving sub-supply sector emerged meeting the world-class procurement standards of multinationals in Ireland and leveraging this experience to move into export markets.

This success story spurred others to start new businesses, targeting global markets in everything from healthcare and premium food brands to environmental technology and aerospace. The creation of a new enterprise culture in Ireland is perhaps the most dramatic aspect of our success story.

Ireland’s companies have been successful in international markets by demonstrating their flair and professionalism. They have tremendous product and service capability as well as an ability to build strong relationships with their customers. Developing these partnerships and linkages has been a key element in Irish companies’ success in overseas markets.

The Irish companies here this evening, with their proven excellence and performance, have much to offer the UK healthcare buyer. They are successful because they have a competitive edge in terms of providing a flexible, customised service, tailored to specific requirements. They understand what’s needed to gain a competitive advantage and they have a real flair for building strong relationships with their customers, the kind of relationships that create a long-term profitable partnership. This function and tomorrow’s "Meet the Buyer" event should be the first steps in developing such new relationships.

World-wide, the healthcare industry has undergone significant change in recent years, driven by factors such as healthcare reform, greater cost control, approved quality certification and increasing international harmonisation of regulatory activity. These and other trends have made it essential for this industry to adapt significantly and rapidly.

The UK market for healthcare supplies is vast and dominated by the NHS which accounts for approximately 70% of the £8 billion spent annually on healthcare. Total spending on medical consumables identified as of interest to Irish suppliers amounts to nearly £2.5 billion, around 30% of the total in NHS spend. Medical and surgical, which includes cardiology, wound-care dressings and incontinence products, is the single largest sub-sector of interest to Irish suppliers.

As you are aware, the NHS deals comfortably with small suppliers offering a bespoke service, flexibility and responsiveness to requirements. I understand that 82% of suppliers to the NHS employ less than 10 people and that the small business team at the NHS purchasing and supply agency offers specific assistance to SMEs anxious to offer supply solutions to the NHS.

Enterprise Ireland’s strategy for the UK healthcare sector, of which tomorrow’s "Meet the Buyer" event is an integral part, basically involves:

• understanding the needs of the NHS at local and national levels
• accessing the assistance provided by the NHS purchasing and supply agency and
• adapting a case-by-case approach for Irish companies in offering healthcare procurement solutions to the NHS

The future challenge for the healthcare sector is ultimately one of partnership between supplier and customer. I believe that it is through working together, that the healthcare service will be better placed to realise its goals of a more efficient and cost-effective procurement of goods and services in a constantly evolving demand-led market.

Partnership is crucial in developing worldwide business and Irish companies have already proven that they make excellent partners. I am confident that this function here this evening and the event tomorrow will go a long way towards the development of such positive partnerships in the existing years immediately ahead.