Speech by Mr. Michael Ahern, T.D., Minister for Trade

To the Enterprise Ireland Trade Event

At the Imperial Hotel Vienna

On Tuesday 27 May, 2003

Ladies and Gentlemen, honoured guests,

I am delighted to be here in this beautiful venue this evening and to have the opportunity to meet so many leading Irish companies and their Austrian partners. This event, which has been organised by Enterprise Ireland, is a unique opportunity to meet and network, and also to celebrate the increasing trade between both our countries. I hope that you will all enjoy the evening and use it as a chance to get to know each other better, in order to strengthen relationships for the future.

Ireland and Austria have always enjoyed strong historic, cultural and commercial relations. Let me start with some of the shared history. The first group of Irishmen to influence the course of Austrian history were Irish monks conducting missionary work and settling in Austria. The first monks arrived in Austria around 600 during a period when Ireland was known as "the Land of Saints and Scholars". The most famous of these monks was St Fergil who became Archbishop of Salzburg in the 8^th century. Vienna's oldest abbey, was founded, not by the Scottish as the name would suggest, but by Irish Benedictine monks in the 12^th century.

Following the men of God, the next Irish group to arrive in Austria were men of arms. Of the 30 portraits of Austria's most distinguished commanders in the Military Academy, at least 12 are Irishmen or men of Irish origin. Many of you may not be aware that an Irishman Eduard Count Taaffe von Carlingford was the longest serving Prime Minister in the Austrian part of the Austro-Hungarian empire at the end of the 19^th century.

Cultural ties have been equally strong. Two of Austria's most celebrated writers Felix Mitterer and Christoph Ransmayr have made a home for themselves in Ireland. The Austrian Empire returned the favour by becoming home for a period to our most famous literary figure, James Joyce.

The two countries have also been enjoying increasing trade with one another over the past number of years, particularly since Austria's entry to the EU. In 2002 bilateral trade reached more than half a billion Euro. The wide range of products and services that are traded between our two nations is considerable - from pharmaceuticals to internationally traded services - and the broad grouping of people present here tonight is evidence of this fact.

Both countries share many other similarities. Both have a strong agricultural base, producing high-quality products. Both are rich in traditions they are proud of and both have a reputation for a clean, healthy environment. However, these blessings can also provide a challenge to businesses wishing to overcome the stereotypical images of our countries.

Austria has a population twice that of Ireland but, like us, you realised that the domestic market was too small to achieve sustained economic growth and looked outward - to what is now the home market of the European Union, as well as to the larger global marketplace. Being here this week, I have come to understand just how well-positioned Austria is at the crossroads of Central Europe as the EU expands eastwards.

I wish to congratulate the Austrian companies who were among the first to seize the opportunities that EU expansion affords and to congratulate also the Irish companies who are targeting these markets alone or together with their Austrian and Central European partners.

The modern Irish economy continues to be one of the fastest growing in the world and this performance is driven by strong export growth. We are, in every sense, a trading nation and we rely substantially on net foreign earnings to maintain growth, create national wealth, improve living standards and provide employment.

In recent years Ireland had average annual rates of export growth of around 13%, the highest in the OECD. In the same period, Irish export growth outpaced world trade growth by a rate of three to one. Since the global economic downturn this growth has of course slowed but has not stopped.

The most remarkable feature of this export expansion is that it has happened within such a relatively short time. Just twenty-five years ago, Ireland's total annual export earnings amounted to the equivalent of less than €500 million - less than one-hundredth of what we currently export. Exports then were made up predominantly of farm commodities, with little or no value-added, which were sold in our neighbouring British market. The profile of our exporting companies has changed, with Irish companies driving technology developments, which touch each of our lives. Like the Irish company Aldiscon which introduced SMS messaging to mobile operators and doubled the cost of every parent's telephone bill in the process!

Austria is increasingly seen as an attractive market for Irish companies. There are many reasons for this including its highly developed infrastructure, increasing spend on research and development, and its leadership in a wide variety of industries, such as financial services and automotive supply.

There is a small Irish community in Austria, but those I have spoken to who are living here have only the warmest praise for their new home. This is indicative of our shared values, such as the belief in the importance of personal contact and relationship building, as demonstrated by your attendance here tonight.

Our host this evening is Enterprise Ireland, the trade and technology board of the Irish government. They actively support Irish companies in Austria, through a range of initiatives to build market awareness and promote sales development. Their services to Austrian companies include undertaking confidential, in depth research of the Irish supply base to find the right company to match the requirements. I urge the Austrian companies here this evening to avail of these services if they have not already done so.

The importance of this evening's event lies not only in providing an opportunity to acknowledge the growing business links between Irish and Austrian companies, but also in acknowledging the achievements of Ireland's exporting companies who are represented here this evening. Dynamic, Irish-owned companies have become our star performers in export markets. They are characterised by their high standards of service, their flexibility and customisation. Above all, they are committed to the development of long term, strategic relationships with their customers.

Most of the companies here this evening operate in markets and sectors that are characterised by rapid and dynamic change. International partnership in the form of sourcing relationships, strategic alliances, joint ventures and collaborative research and development are increasingly important. I have no doubt that there are significant opportunities for greater partnership between Ireland and Austria and we are committed to further developing these opportunities in the years ahead.

ENDS