Exporters, particularly in the agri-food sector. are facing a catastrophic situation because of the euro-sterling exchange rate, according to industry representatives.
The Irish Farmers Association and the Irish Exporters Association have issued a joint proposal to the Government for measures to help Irish exporters.
They have proposed two measures: a Sterling Equalisation Support Scheme, which would guarantee an exchange rate of 80p to the euro for one year; and an Export Credit Trade Support scheme, which would see the Government part-funding insurance for exporters.
IFA president Padraig Walshe said that the the agri-food sector was a very important part of the economy, and with 43% of exports going to the UK, Irish exporters had been very hit hard by the 20% drop in the value of sterling over the past year.
He said 50% of Irish beef exports and 35% of dairy products go the UK. Mr Walshe said the cost of doing nothing to help exporters was far greater than the cost of an exchange rate guarantee.
The president of the IEA, Liam Shanahan, said 20,000 jobs in export companies and associated business were at risk unless something was done, and he said there would be no cost to the Government if the credit insurance scheme were introduced as it had been in other countries like France and the UK.
