Sir, - We are a specialist producer of high-quality smoked salmon, of which we export £1 million worth throughout Europe. Since January 1996 we have had to endure a fairly dramatic increase in the value of the Irish pound against all currencies in the European Union, and this is starting to make us, and hundreds of companies like us, totally uncompetitive.
Unlike the large dairy and meat companies, we do not have the luxury of simply directing our sales towards more attractive markets such as the UK, where huge gains can be made because of sterling's current strength against the punt. These companies are effectively selling commodities, whereas smaller producers have to develop and maintain a brand. If we stop selling to our clients they are highly unlikely to buy from us again.
It has been a national strategy for over a decade both to diversify exports away from the UK, on which we have traditionally been too dependent, and to nurture the growth of small producers of quality, inherently Irish products with export potential. If the current strength of the punt in Europe does not change, it will result in companies having to stop selling to Europe. If this happens, it could take years for smaller producers to make any impact again in the European market, and Ireland may see a return in the short term to large companies selling bulk commodities world-wide and smaller specialised producers confined to selling in Ireland or the UK.
We are, broadly speaking, in favour of a single currency, but this is a bitter pill to swallow while we have to wait for it. I trust that Mr McCreevy will take the many companies such as ours into consideration in any decision-making process. - Yours etc.,
Ronan Cullen,
Kenmare, Co Kerry.