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Report on the Contribution of the Dept. of Foreign Affairs and Trade

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Report on the Contribution of the Dept. of Foreign Affairs and Trade Tithe an Oireachtais An Comhchoiste um Ghnóthaí Eachtracha agus Trádáil Tuarascáil Rannchuidiú na Roinne Gnóthaí Eachtracha agus Trádála le Téarnamh Eacnamaíochta 3ú Tuarascáil Nollaig 2013 Houses of the Oireachtas Joint Committee on Foreign Affairs and Trade Report The Contribution of the Department of Foreign Affairs and Trade to Economic Recovery 3rd Report December 2013 31FANT009 1 Joint Committee on Foreign Affairs and Trade List of members Chairman: Pat Breen (Chair) (FG) Deputies: Eric Byrne (Lab) Seán Crowe (SF) Bernard J. Durkan (Vice-Chair) (FG) Olivia Mitchell (FG) Gerald Nash (Lab) Dan Neville (FG) Maureen O’Sullivan (Ind) Brendan Smith (FF) Senators: Deirdre Clune (FG) Mark Daly (FF) Lorraine Higgins (Lab) Michael Mullins (FG) David Norris (Ind) Jim Walsh (FF) Notes: 1. Deputies appointed to the Committee by order of the Dáil on 9 June 2011 2. Senators appointed to the Committee by order of the Seanad on 16 June 2011 3. Deputy Pat Breen elected as Chairman on 22 June 2011 4. Deputy Bernard Durkan elected as Vice Chairperson on 22 June 2011 5. Deputy Gerald Nash appointed on 26 January 2012 (in substitution for Michael McNamara) 6. Deputy Olivia Mitchell appointed on 19 July 2012 (in substitution for Dara Murphy) 7. Deputy Brendan Smith appointed on 19 July 2012 (in substitution for Seán Ó Fearghaíl) 8. Deputy Seán Crowe appointed on 25 September 2012 (in substitution for Pádraig MacLochlainn) 2 Acknowledgements The Joint Committee would like to express its appreciation to all those who shared their views, experience and ideas on the contribution of the Department of Foreign Affairs and Trade to economic recovery. In particular it would like to thank the Secretary-General and staff of the Department of Foreign Affairs and Trade, and the Secretary-General and staff of the Department of Jobs, Enterprise and Employment; the Chief Executive Officers and staff of the following bodies: IDA-Ireland, Enterprise Ireland, Forfás, the Irish Business and Employers’ Confederation, the Irish Exporters Association, the Joint Arab-Irish Chamber of Commerce, Asia Matters, Chambers Ireland, the British-Irish Chamber of Commerce, the American Chamber of Commerce Ireland, the Irish Farmers Association; the Staff of the Consulates-General of Ireland in Atlanta, San Francisco and Chicago, and the Honorary Consul of Ireland, Houston. In addition, the Secretariat of the Joint Committees provided valuable help and support for which the Members are very grateful. 3 Contents Chairman’s Foreword 1. Introduction and Recommendations 2. New Departmental Structures 3. Export Trade Council and Cooperation with State Agencies 4. Global Irish Network and the Global Economic Forum 5. Emerging Markets 6. The “Ireland House” approach 7. Reputational Recovery 8. St. Patrick’s Day 9. Cultural Promotion 10. Innovation Ireland 11. International Peace and Security; Human Rights 12. Diplomatic Representation 13. Cooperation with the State Agencies 13.1 Inward Investment 13.2 Trade Promotion 13.3 Enterprise Policy 14. Cooperation with Private Sector Organisations 14.1 IBEC and IEA 14.2 Joint Arab-Irish Chamber of Commerce 14.3 Asia Matters 14.4 Chambers Ireland 14.5 British-Irish Chamber of Commerce 14.6 American Chamber of Commerce Ireland 14.7 “Green Ireland”: Irish Farmers Association 15. Joint Committee Visit to the United States 15.1 Consulate-General Atlanta 15.2 Consulate-General San Francisco 15.3 Visit to Texas 4 Chairman’s Foreword From the start of our economic and fiscal crisis, the over-riding task of the Department of Foreign Affairs and Trade has been the contribution it can make to recovery. The present government, with the creation of the Export Trade Council chaired by the Tánaiste, conferred additional responsibilities on the Department, and the Joint Committee wanted to assess how the Department rose to the challenge, and whether its structures were adequate to the task. Specifically, we wanted to be sure that the unique resource offered by the Embassy network was used to best effect, in association with the relevant State Agencies, in trade and tourism promotion and in attracting foreign investment, as well as in restoring Ireland’s reputation. We wanted to be sure also that the organisational structures at the Department’s Headquarters provided the necessary support for this task, and were adequate to the Department’s new responsibilities. Over the past year and a half, we have engaged with a wide range of actors from the Department itself, from the State Agencies, Chambers of Commerce, Employers’ and Exporters’ organisations, and farmers’ representatives. Given the importance of the United States as a source of investment, we have examined the operation of the Consulates there. The task has given the members of the Joint Committee an excellent insight into the whole process of economic promotion. It has also impressed on us the importance of reputation, for which our Embassies have a special responsibility. We have also come to appreciate the role of the Global Irish Network in fostering the international dimension of Ireland’s recovery. Overall, I am glad to say that the Joint Committee’s investigations confirmed that the Department of Foreign Affairs and Trade, following strategic adjustments, is well equipped for its task, and that the Embassies are regarded as effective partners by the State Agencies and the private sector in economic promotion. Our diplomatic network is much smaller than those of many countries of comparable size and economic strength, and we have therefore also considered whether the Department should add to its Mission network, in view of the rapidly-changing global industrial scene. We have, of course, been conscious throughout of the great importance that our citizens attach to other responsibilities that the Department of Foreign Affairs and Trade has to fulfil in pursuit of Ireland’s values and interests, for instance in the area of human rights and in 5 support of international peace and security. These activities are, I believe, important to Irish people’s sense of themselves and of their place in the world, and contribute to Ireland’s reputation among the international community. In no way therefore does the Joint Committee suggest that this work should be in any way displaced or downgraded. In any event, I do not believe that these tasks can be easily separated from the task of economic promotion, which our Embassies have always pursued. We have now exited the bail-out with our reputation restored, even enhanced, but a great deal needs to be done to return the nation to a level of sustainable prosperity matching its potential. The Joint Committee will continue to monitor how the Department of Foreign Affairs and Trade contributes to this task and will work to ensure and that we have the kind of diplomatic service that we need to support the nation’s values and interests. Finally, on behalf of the Joint Committee, I wish to thank all those who assisted us by generously giving of their time and knowledge to participate in our hearings. ___________________ Pat Breen TD Chairman Oireachtas Joint Committee on Foreign Affairs and Trade 6 OIREACHTAS JOINT COMMITTEE ON FOREIGN AFFAIRS AND TRADE Report on the Contribution of the Department of Foreign Affairs and Trade to Economic Recovery 1. Introduction and Recommendations The Joint Committee’s central task is the scrutiny and evaluation of the Government’s foreign policy including, in that context, scrutiny of the work of the Department of Foreign Affairs and Trade. It therefore set out to examine the Department’s strategy and response to the economic crisis, particularly in view of the new responsibilities in relation to trade promotion conferred on it by the Government in 2011, and in light of the trade promotion aspects of the Programme for Government. As part of this, the Joint Committee wished to take into account the Department’s role in Ireland’s recovery, including its reputational recovery, in the wake of the economic crisis. The Government and DFAT adopted a number of strategies in response to the economic crisis and to the Programme for Government, and the Joint Committee sought to explore the implementation of these strategies and their contribution to recovery. These strategies included the conferring of a trade promotion function on what had been the Department of Foreign Affairs, the establishment of the Export Trade Council, the programme of Trade Missions, the establishment of the Global Irish Network, as well as the Global Irish Economic Forum, a strategic approach to St. Patrick’s Day activities, a more streamlined structure of diplomatic Missions and their further orientation towards the promotion of foreign earnings, the identification, in cooperation with state agencies, of priority markets, Departmental restructuring, including the closure of certain diplomatic missions, and the impact of the “first 100 days” Ambassadorial conference. Given the importance of the United States as a trading partner and source of investment, the Joint Committee’s examination involved at the outset a visit which focused on three Irish Consulates, as well as business networks and industry representatives in the related Consular areas. This visit yielded valuable information supplementing that gathered in meetings of the Joint Committee. The Joint Committee at the outset took careful note of the task set for his Department by the Tánaiste in his Strategy Statement, in which he said that DFAT “will have the leading role, in close cooperation with State
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