‘Russia is a key target market for Irish firms’

by the Minister for Trade and Commerce, Billy Kelleher TD

This week, I am leading 30 top Irish firms on a week-long trade mission to Russia.

Half of the Irish firms on the mission are in the information communications technology (ICT) and services sectors.

One firm accompanying us - Digisoft.tv Ltd - from Cork is a leading global provider in media and entertainment markets.

The company has just signed a deal to help deliver terrestrial television channels to viewers in Russia.

Meanwhile, University College Cork (UCC) is with us in Russia to boost its international education links with the country and forge new relationships with higher education institutions.

Irish firms travelling with us this week are from a range of sectors including engineering, construction, food and drink, education and business services.

The mission, organised by Enterprise Ireland, coincides with President Mary McAleese’s visit to the country.

I met the Russian president, Dmitry Medvedev, this week to discuss how we can strengthen our trade links and build the bilateral relationship.

Russia is Europe’s largest emerging market.

Irish exports to the country grew by over 66pc in the first five months of this year.

Combined Irish exports of goods and services to Russia were €1.7 billion in 2008.

Ireland is the seventh largest provider of foreign direct investment to Russia ahead of the US and Japan.

Enterprise Ireland has set up an extensive programme of meetings for each Irish firm with existing and potential customers and partners.

The trade mission is an important opportunity to showcase Irish firms and organisations and generate new business opportunities.

It is important that we give Irish firms opportunities to strengthen their business links with Russia and help new market-entrants to land their first breakthrough sale there.

The participation of UCC on the trade mission is an important indicator of growth potential in the international student market.

The sector contributes €900 million to the Irish economy each year and supports thousands of Irish jobs.

Yet Ireland attracts less than 1pc of the international student cohort.

My Cork colleague, the Minister for Enterprise, Trade and Innovation, Batt O’Keeffe TD, created the ‘Education Ireland’ brand in his previous portfolio so that Ireland can be better positioned to capture a greater share of the high-growth global international student market.

We can see that strategy in action this week in Russia and, as Minister for Trade and Commerce, Minister O’Keeffe has asked me to play a central role in selling Ireland abroad and generating new business opportunities.

A key aspect of the trade mission is a joint knowledge event held between the Russian National Nanotechnology Company and Science Foundation Ireland.

Russia offers opportunities for Cork construction firms too, particularly in major infrastructure projects such as roads, ports and airports and in the Sochi Winter Olympics in 2014 and the World University Games in 2013.

Our economic recovery will be export-led and the Government’s strategy is to target markets with high growth potential that can generate revenues and jobs for Irish firms.

The Government’s commitment to Ireland’s economic recovery is steadfast.

Investment in enterprise will be up 25pc over next six years as part of our economic recovery plan.

During the summer the Taoiseach announced the six-year €39 billion capital review plan.

Under the plan, we will invest almost €1.2 billion in our job creation agencies to create more than 270,000 jobs up to 2016.

A further 30,000 jobs will be supported annually under the capital infrastructure programme while some 10,000 jobs will created through retrofitting and energy projects.

We will invest €2.4 billion in science, technology and innovation programmes to create new high-quality jobs and bring more researchers and firms together to produce the high-tech products of tomorrow.

Although Ireland has technically emerged from recession and growth is predicted for the second half of this year and into next year, job growth is always slower to materialise as other economic indicators pick up.

But our training programmes and extra places in further and higher education are re-skilling our workforce to take up new jobs in growth areas of the economy.

We have increased the number of training supports from 66,000 in 2008 to over 160,000 this year.

Meanwhile, initiatives such as the Employer Job (PRSI) Incentive Scheme, Employment Subsidy Scheme and Enterprise Stabilisation Fund are supporting employers and securing many thousands of jobs.

We know that the best way to get people back to work is to get our house in order - and we are doing that by fixing the banking system; restoring order to the public finances; regaining our competitiveness; and getting credit flowing to viable small businesses.

In the last recession in the 1980s, political instability and an unwillingness to take tough decisions quickly resulted in massive emigration and a slow painful recovery.

This time, I believe our recovery will be faster and the pain shorter-lived because we are pursuing the right policies on the public finances, investing wisely in enterprise and jobs, and using trade missions to tell the world that Ireland is open for business.

ENDS\TC447

Bernard Mallee, Press Adviser to Minister Batt O'Keeffe, Department of Enterprise, Trade and Innovation, on Tel: +353 1 631 3944, Mobile: +353 87 9173022, Email: bernard.mallee@deti.ie