A review published into export licensing procedures for military and so-called dual-use goods — which may be used in warfare — found that between 1999-2003, the value of military licences ranged between €30m and €60m a year. However, the value of dual-use licences ranged between €2 billion and €4 billion.
The consultants say that the vast majority of goods exported under this category are probably not destined for military use and it cannot be assumed that they are. They also point out that the actual exports are likely to be lower in value than the licences, which are applied for in advance but are often not used.
However, they caution that the licensing system is so complex it is impossible to tell the actual value of the industry.
The report states: “There is no official trade data on production or exports of military and dual-use goods in Ireland. This reflects principally the fact that military goods produced in or exported from Ireland involve components rather than finished goods . . . In the case of dual-use goods, there is the additional complication that the regulated goods may or may not be used for military purposes.”
The review calls for an overhaul of exporting procedures to close off several loopholes that could allow certain components to end up in the wrong hands.
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It also wants increased penalties for companies who flout the regulations and additional personnel to scrutinise licence applications. Currently, the licensing system department comprises two full-time and two part-time staff.