Ireland to pull out of the euro?

Flamed Diving

K-9 wrote: »

Think its mostly multinationals though, indigenous exports would be more the UK.

People too busy building houses for the last 5/6 years.

Translation:

I don't want to be wrong so I'm just going to make something up in order to shift the goalposts a bit, look I will just throw in a jibe about the overheated construction sector to deflect attention. La, la, la!

K-9

Flamed Diving wrote: »

Translation:

I don't want to be wrong so I'm just going to make something up in order to shift the goalposts a bit, look I will just throw in a jibe about the overheated construction sector to deflect attention. La, la, la!

Why do you think our own exporters are so exposed to sterling?

I thought it was relatively well known that are own indigenous exporters are still very reliant on Sterling whereas the multinationals are more diverse. Maybe not.

Here's a good piece on it:http://www.finfacts.ie/irishfinancenews/article_1018459.shtml

CamperMan

I still miss the Punt... bloody euros pushed the price of everything through the roof

Flamed Diving

K-9 wrote: »

Why do you think our own exporters are so exposed to sterling?

I thought it was relatively well known that are own indigenous exporters are still very reliant on Sterling whereas the multinationals are more diverse. Maybe not.

That might very well be the case, it's just it would be nice to see something backing it up, that's all.

K-9

Flamed Diving wrote: »

That might very well be the case, it's just it would be nice to see something backing it up, that's all.

Added above, we have problems being in the Euro, but they are largely of our own making, hence the reference to houses!

Flamed Diving

K-9 wrote: »

Added above, we have problems being in the Euro, but they are largely of our own making, hence the reference to houses!

Thanks. I did some rummaging myself, makes for interesting viewing:



Was 2000/01 the BSE crisis?

masteroftherealm

Why does eveyone assume that we are intrinsically llinked to the UK when it comes to the economy, we are more linked to the EU and the US than the UK and have been for a good number of years.

Flamed Diving

What we did before the Euro, written by the now Governor of the Central Bank.

http://homepage.eircom.net/~phonohan/BNL.pdf

Flamed Diving

Some contrast:





Note the tenfold difference in figures on the Y-axis.

K-9

Flamed Diving wrote: »

Thanks. I did some rummaging myself, makes for interesting viewing:



Was 2000/01 the BSE crisis?

Not great figures for the Euro area.

masteroftherealm wrote: »

Why does eveyone assume that we are intrinsically llinked to the UK when it comes to the economy, we are more linked to the EU and the US than the UK and have been for a good number of years.

The foreign multinationals are more linked to the US and the Euro, which begs the question, why haven't our own companies capitalised?

That should be the question asked, not Ireland pulling out of the Euro.

Flamed Diving

K-9 wrote: »

Not great figures for the Euro area.

Yes, yes, I see exactly what you mean by that.

masteroftherealm

Many Irish companies are exporting both goods and services to the US and Europe. I know this for fact.
Its not just the MNC's.

Flamed Diving

masteroftherealm wrote: »

Many Irish companies are exporting both goods and services to the US and Europe. I know this for fact.
Its not just the MNC's.

Many = ???%

masteroftherealm

Couldnt tell you a percentage, but in my industury anyway I know of at least 25/30% of companies I would have dealt with would have taken over 50% of their revenue from EU or US sources. Many hated dealing with the UK due to sterling.

K-9

masteroftherealm wrote: »

Many Irish companies are exporting both goods and services to the US and Europe. I know this for fact.
Its not just the MNC's.

masteroftherealm wrote: »

Couldnt tell you a percentage, but in my industury anyway I know of at least 25/30% of companies I would have dealt with would have taken over 50% of their revenue from EU or US sources. Many hated dealing with the UK due to sterling.

That's the example we should be following but the figures suggest we aren't doing enough of it.

masteroftherealm

I would agree, I would also think that a mix of revenue is very important, I have seen first hand that its a mistake to base a company in Ireland whos market is 100% abroad, I lost my job because of it.
I think 40-60% of revnue from EU/US sources is the best mix. We need a mix of local and international business in this country.

Flamed Diving

masteroftherealm wrote: »

Couldnt tell you a percentage, but in my industury anyway I know of at least 25/30% of companies I would have dealt with would have taken over 50% of their revenue from EU or US sources. Many hated dealing with the UK due to sterling.

I searched around, but could not find any data to use, however, there is an article on the website for the Irish Exporters Association which states:

Press Release

For Immediate Release

Tuesday 20th October 2009

Department of Foreign Affairs Has Key Role to Play in Increasing Exports

...This was the message delivered by Mr Liam Shanahan, President of the Irish Exporters Association, when he appeared recently at a meeting of the Joint Committee on Foreign Affairs...He said that although indigenous exports only accounted for some 12% of total exports, they accounted for some 50% of export related jobs.

http://www.irishexporters.ie/article_1182.shtml

I have no idea what his source is, although it is probably data collected by his association.

masteroftherealm

Yeah 12% is much lower than I would have though, biased experience I suppose.
That figure needs to be raised much higher, Irish Boutique/Niche businesses need to realise they can compete on an international scale as long as they have the quality of work.

K-9

Flamed Diving wrote: »

I searched around, but could not find any data to use, however, there is an article on the website for the Irish Exporters Association which states:



I have no idea what his source is, although it is probably data collected by his association.

Would be interesting to see the source. It's believable as agriculture is labour intensive and probably depends on the definition of export related.

Hotblack Desiato

TheCandystripes wrote: »

ireland prob should use the brit pound

And your local football team prob should be called Londonderry City :rolleyes:

Any suggestion that we leave the Euro is, of course, ludicrous and emanates from the usual anti-EU British gutter press, and the lunatic fringe like you-know-who.

If we adopted our own currency now, it wouldn't be a pound or punt, but a peso...

Highly Salami

Boston wrote: »

We export the most to the euro zone.

so having a weaker currency than them will be good for our economy!

Boston

Highly Salami wrote: »

so having a weaker currency than them will be good for our economy!

You realise import is another side of that equation.

Flamed Diving

Highly Salami wrote: »

so having a weaker currency than them will be good for our economy!

The vast majority of our debt (both private and public) is Euro-denominated.

weedfreedomtinp

would cause to many problems now after the lisbon treaty .. and i voted no to that 2

View

weedfreedomtinp wrote: »

would cause to many problems now after the lisbon treaty .. and i voted no to that 2

And the link to Lisbon is?

nesf

masteroftherealm wrote: »

Yeah 12% is much lower than I would have though, biased experience I suppose.
That figure needs to be raised much higher, Irish Boutique/Niche businesses need to realise they can compete on an international scale as long as they have the quality of work.

It shouldn't surprise you, the turnover of SME Irish firms is going to be dwarfed by the turnover of Pfizer etc in terms of value of exports. The 50% of jobs figure does coincide with your experiences though, you just made the mistake of assuming because a lot of people work in an area that the turnover must be very high which isn't always the case due to differences in value added in different industries. Cork had a higher GDP per capita than anywhere else in the country because of the pharma companies in the area generating a silly amount of exports per worker employed in Euro terms.

K-9

nesf wrote: »

It shouldn't surprise you, the turnover of SME Irish firms is going to be dwarfed by the turnover of Pfizer etc in terms of value of exports. The 50% of jobs figure does coincide with your experiences though, you just made the mistake of assuming because a lot of people work in an area that the turnover must be very high which isn't always the case due to differences in value added in different industries. Cork had a higher GDP per capita than anywhere else in the country because of the pharma companies in the area generating a silly amount of exports per worker employed in Euro terms.

Intel was like that in the 90's I think, I'm sure its still very high.

So we have to hope Pfizer keeps up? :eek:

nesf

K-9 wrote: »

Intel was like that in the 90's I think, I'm sure its still very high.

So we have to hope Pfizer keeps up? :eek:

It's Pfizer plus a bunch of other companies on Little Island. Useful gathering of companies actually, it allows for specialised staff to change company without changing location as well as the concentration of commercial support services around the area.

If Pfizer and all the other pharma companies left Little Island it would create a very serious local unemployment problem and cause the collapse of a lot of Irish-owned SME companies and require others to cut their staff numbers to compensate for the drop in demand.

Dob74

Highly Salami wrote: »

so having a weaker currency than them will be good for our economy!

A weaker currency would be good for exports but now that all of our debt is held in Euro. It would bankrupt us to leave the Euro.
The only way to devalue is to cut our costs.
And that isnt going to be fun.

masteroftherealm

nesf wrote: »

It shouldn't surprise you, the turnover of SME Irish firms is going to be dwarfed by the turnover of Pfizer etc in terms of value of exports. The 50% of jobs figure does coincide with your experiences though, you just made the mistake of assuming because a lot of people work in an area that the turnover must be very high which isn't always the case due to differences in value added in different industries. Cork had a higher GDP per capita than anywhere else in the country because of the pharma companies in the area generating a silly amount of exports per worker employed in Euro terms.

Pfizer was a large client of mine

Yes there are always going to be MNC's in Ireland, but we also need indegenous industury to both support these companies, and to work for local Irish businesses, for example while on contract to Pfizer my payments came from New York so I could class that as export work. The point I was trying to make was we can export services while still remaining in Ireland, I wprked on some major projects in LA, while living in Dublin, that would be a services export in my opinion.