Speech By Minister McGuiness at the IBEC Seminar on the new Authorised Economic Operators System (AEO System)

Conrad Hotel, Wednesday 10 October 2007

Ladies and Gentlemen,

I am delighted to be invited to join you today on the occasion of this seminar. As you may know, I have already had the pleasure of speaking to the Small Firms Association, but this is my first time speaking to the wider IBEC membership since being appointed Minister for Trade and Commerce. So, I would like to start by setting out my stall before turning to the topic you have been discussing this afternoon.

I am sure that many of you are well used to being addressed by politicians. But I like to think that I am a politician with a difference when it comes to this audience. For a start, I too have been in business. I have put in the hours, faced the hurdles and made the difficult decisions.

So, I have both experience and understanding of your working lives. Now, as the Minister with responsibility for both Trade and Commerce, I want to assure you that I will not forget that experience and understanding. Rather, I will bring it to bear on my new role.

Turning to the topic you have been looking at today, I find myself in an unusual position. It is not often that I have reason to praise the introduction of new obligations on business. The establishment of the Authorised Economic Operator System (AEO System) is something different however. This is a new system that will really facilitate, and not hinder, our trade with the rest of the world.

Of course, we all recognise the need to combat terrorism and to put controls on trade in place. But this must be set against the Government’s commitment to reducing the administrative burden on our businesses. In my role as Minister for Trade and Commerce, I am committed to improving the existing regulatory environment, and to ensuring that any new regulation is both necessary and proportionate.

This is no less important when it comes to trade. Companies engaged in international trade have to prepare and submit a great deal of documentation to comply with import, export and transit requirements. This adds to the cost to both the trader and the consumer. Any initiative that works to alleviate that burden is very welcome.

For that reason, I am delighted to see that Irish customs officials and their colleagues in Brussels have found the balance between the need for control and the need to facilitate legitimate trade. In creating this new Authorised Economic Operator System (AEO system), they have taken into account the interests of business people such as you. They have considered the needs of the large and small enterprise sectors and devised a clear and straightforward system that is both fit for purpose and does not create new over-burdensome requirements for lawful traders. They will reward those traders who make every effort to comply by facilitating them and reducing requirements.

Of course, we have an obligation to our trading partners to ensure that our exports are secure and that we have the necessary customs controls in place. But we also have an obligation to our own traders to ensure that the free movement of goods is not compromised by unnecessary interventions. This new Authorised Economic Operator System (AEO system) is a move in that direction.

As you know, this is not the first time that the Revenue Commissioners have been ready to take on board the views of enterprise. They are committed to modernising and improving the efficiency of international customs procedures. At national level, the redeveloped and upgraded Automated Entry Processing System was launched earlier this year. This provides enhanced services to enable traders to conduct their business with Revenue. Irish Customs are also involved in the operation and development of the Single European Authorisations whereby traders who import and export goods across a number of other EU Member States are authorised to conduct their business with just one Customs Administration.

And it does not stop there. In the near future, I believe that they plan to begin consultations with interested parties on further customs initiatives such as the so-called “single window” approach. In this time where e-commerce is so popular, we must take advantage of the developments in information technology and put them to use in modernising the trading system. I look forward to seeing these plans come to fruition.

Ireland has an open economy that is dependent on international trade to a much greater extent than many other countries. So, for us, initiatives that smooth the progress of trade are very important. We need to tackle barriers where we find them and encourage clear and consistent procedures that can be easily complied with. With this in mind, Ireland, together with the EU, has been constant in raising this important subject at the World Trade Organisation and we are determined that progress will be made on trade facilitation in the current Doha Round of talks for a new agreement. I know that IBEC supports us in that endeavour and we will continue to work with you for a successful outcome.

Red tape is the enemy of competitive trade, yet our economy depends significantly on trade being just that, competitive. I hope that the Authorised Economic Operator System (AEO system) will be followed by similar initiatives soon, so that Irish exports can get to their markets with the minimum of delay and the maximum of efficiency. Our products can compete with the finest abroad, but not if they are hindered or even stopped from reaching their destination by cumbersome controls.

Finally, thank you again for inviting me here today. I look forward very much to working with you in the future on both trade and commerce issues. You will find that I keep an open door.

Thank you.

ENDS/TC296