IRELAND could lose up to £1.4 billion in lost exports if the current exchange rates are sustained over a full year, according to exporters, farmers and the food, drink and tobacco trade.
Yesterday, the Irish Exporters' Association, the Irish Farmers' Association, the Food Drink and Tobacco Federation, the Irish Cooperative Organisation Society and the Irish Meat Association announced their intention to make Government policy on exchange rates an election issue. However, the organisations welcomed the decision of the Central Bank not to support the pound yesterday.
Mr John Whelan, president of the Irish Exporters' Association, said the appreciation of the Irish pound by 10 per cent or more against the main European currencies since last summer was unfairly penalising Ireland's exports to major vital markets.
"The Government and the Central Bank must realise that an uncompetitive exchange rate is a self imposed tax on Irish exports, which is surely the last thing this economy needs," he said.
Mr Colm McDonnell, of the IEA said there was "an orange light" over the performance of some of the multi national companies in Ireland operating into mainland Europe and he feared that they might have to cut their labour forces to satisfy the demands of their parent companies.
Mr Pat Ivory of the Food, Drink and Tobacco Federation, said food and drink exports ran at £1.7 billion to mainland Europe and £2 billion to the UK.
Mr Martin Varley, of ICOS, the umbrella body for the co operative movement, said the situation was untenable and had cost Irish agriculture £200 million.
Mr John Smith, of the Irish Meat Association, representing the Irish meat plants, said the exchange rate problem was best seen in the French lamb market which had been Ireland's largest.