The Irish Farmers' Association (IFA) and Irish Exporters Association (IEA) have proposed a sterling equalisation support scheme to safeguard exports in an unprecedented move.

The export protection strategy, which will particularly focus on the agri-food sector, will run alongside their export credit insurance trade facilitation scheme.

At the joint press conference, the IFA and the IEA stated that the proposed scheme was essential to prevent widespread loss of exports and jobs, particularly in the agri-food sector, which was heavily dependent on the UK market.

Liam Shanahan, IEA president, said: "National economic recovery depends on maintaining a competitive exporting sector, but the current reality is that Ireland’s traditional exporting industries including the agri-food industry are being undermined by the 20 per cent depreciation of sterling since the end of 2007.

“Unless action is taken by the Government by implementing a Sterling Equalisation Fund, 13,500 jobs in exporting sectors will be lost and the recessions will be more protracted."

"We are looking at widespread exposure by a very wide range of export companies in both manufacturing and services companies to the collapse of sterling. The total export sales exposure of manufacturing and services companies to the UK is €7 billion (£6.6 bn).

“At risk are 13,500 jobs in export companies. A further estimated 10,000 jobs would be indirectly affected, bringing the total to 23,500," he said.

Peter Kendall, the National Farmers’ Union president, said: “As fellow farmers we have great sympathy for Irish farmers who are struggling with lowering prices. However, we do not agree with the principle of governments intervening unilaterally in the European Single Market and oppose the creation of schemes to do that. We have had to make that very clear to our own government.

“For many years, when the value of sterling was high against the euro, the NFU did not call for a UK State Sponsored Scheme to protect us from imports or to give aid to exports. We had to suffer lower prices during these times because we work in a Single European Market.”

The joint proposal sets out the precise workable operation of a sterling equalisation support scheme and is being submitted to the Department of Enterprise, Trade and Employment and Government for immediate implementation.

The NTMA (National Treasury Management Agency) may act as guarantor as it has a requirement to purchase sterling, and could act as a counter-party to the exporting businesses which are selling sterling. The key requirement is that the exchange rate for the exporter would be capable of being fixed at £0.80 to the euro.

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