Michael Ahern (Cork East, Fianna Fail)
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I am aware that the Irish merchandise exports decreased by 12% in value terms in April of this year, relative to March. The decrease was mainly due to a fall in exports of goods, for example, chemicals, medical and pharmaceuticals, manufactured goods and computers, to some of our main trading partners such as Great Britain, Belgium, France, Germany, the US and Japan.

While any decrease in trade figures is disappointing., it is important to bear in mind, however, that a month on month comparison of figures does not provide a sufficient basis for analysis with regard to establishing a particular trend. Because of the cyclical nature of exporting, and also the dominance of multinational companies in the Irish exporting sector, who often vary their exporting patterns for strategic reasons, one cannot attribute too much significance to a month on month comparison of figures. In fact, figures released by the CSO for May 2006, show that subsequently exports increased by 17% relative to April 2006, but fell back again in June only to recover again in July, increasing by 5%.

A more reliable indicator of Ireland's trading position is to look at a longer period of perhaps six months, or a year on year comparison. In that context, figures published by the CSO, in September, for the first six months of the year, showed an increase of 3% relative to the same period in 2005. Full year comparisons between 2005 and 2004, show that the value of exports increased by over 5%. This follows an increase of 3% overall for exports in 2004 when compared with 2003. I am confident that when the end of year figures are available for 2006, the figures will attest to the fact that Irish exports are continuing to increase year on year, and that Irish exporters are performing well in a difficult global trading environment.