CCI-newsletter-1980-24-January-February

JANUARY/FEBRUARY 1980

NEWSLETTER

LTD. Thomas Prior House, Merrion Road, Ballsbridge, Dublin 4 Telephone 01 680764

4th National Craf tsTrade Fair Orders Top £600,000

Mr Eamonn Kennedy, the Irish Ambassador to London, opened the Crafts Council of Ireland exhibition: "Weaving—The Irish Inheritance" at the gallery of the Crafts Council of England and Wales on 29 January.

Three days of busy trading produced direct orders placed at the National Crafts Trade Fair worth £625,000. With this fourth fair showing an expansion in exhibitors of 25% - from 117 to 164 and allowing for an inflationary factor, the result showed an increase in business over 1979 of 11.6% in real terms.

A wide variety of products were exhibited with ceramics, jewellery and textiles predominating. The quality of both the craftsmanship and presentation was an improvement on last year, continuing in this regard a move towards more professionalism which has been evident in each of the four fairs held so far.

'Sue Erridge, Honorary Secretary, Clare Craftworkers, at the NCTF.

Demand Exceeds Supply for High Quality Crafts Miss Blanaid Reddin, well-known to all craftsmen as Product Adviser at Bord Failte and Management Committee member of the Crafts Council, opened the Fourth National Crafts Trade Fair at the press preview on 14 January.

Among the more significant remarks made by Miss Reddin was that "demand

Introduced by Mrs Patsy Duignan, Chairman of the Crafts Council of Ireland, the Ambassador spoke of the choice of weaving as the theme for the Council's participation in the "Sense of Ireland" programme of cultural events in London over a two-rnonth period.

Six specially commissioned weavings were the climax of this exhibition which gives a brief history of weaving in Ireland from earliest times, concentrating largely on the great revival in the late nineteenth century and contrasting the life and work styles of the contemporary weavers with their predecessors of almost a century ago.

Once again comments from buyers underlined the improvement in quality, and this is something which exhibitors themselves, by their participation, have created those who have attended previous fairs showing the more professional approach.

The number of exhibitors may well be reaching the limit of the space available and the time limits on buyers. A three hour tour would not allow much more than one minute per stand.

Crafts Council Exhibition Opens in London

The exhibition, which will last until 29 March, is open Monday to Saturday from 10.00 am to 5.00 pm at 12 Waterloo Place, London SW1Y. Paddy Walsh of Puckane Crafts with Miss Blanaid Reddin of Bord Failte at present exceeds supply for Irish-made gifts and crafts of a high standard. More up-market'distinctively Irish products are needed by the buyer if we are to meet the present tourist requirements."

While Miss Reddin was speaking in her Bord Failte capacity and thus stressing the interest in and the close links between crafts and tourism, the necessity which she underscored for continually higher standards is also important to the home market if the imports of foreignmade crafts is to be kept under control.

APOLOGIES We apologise to all subscribers for the fact that publication of both this and the previous edition has been late. Circumstances (like all such circumstances) beyond our control were partly responsible.

Northern Buyers'Group Visit to National Crafts

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Coras Trachtala initiated a visit to the Trade Fair by a group of thirty-eight buyers from Northern Ireland. While Northern Ireland buyers have been present at recent trade fairs, this is the first time that they have come as an organised group.

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Trade Fairs Donegal, Galway, Clare Craftworkers Associations will all be holding trade fairs during February and March.

Regional trade fairs complement the National Crafts Trade Fair and the associations involved are to be con­ gratulated on their enterprise.

Crafts tomorrow World Crafts Council 1980 Vienna, Austria 9 General Assembly, July 25-26 International Conference July 27-August 1 Austrian Crafts Council

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Tourism Expected to Prosper Speaking to Conference delegates, Mr Niall Miller, Group Manager of Bord Failte Product Services Division, quoted 1978 as "the best year ever" for the tourist industry in Ireland. Foreign tourists numbered 2,257,000 and revenue was £278.7m. Expenditure on home holidays, or domestic tourism, was £98m giving a total 'turnover' for the holiday industry here of £376.5m.

This compares with £137.3m in 1972, an increase of 174% in current terms.

"A significant upswing in tourism num­ bers will be very difficult to achieve in the immediate future in some markets.

Increasing inflation, unfavourable exchange rates, lower disposable income levels, fears of an economic recession and the general social and political environment, all pose challenges for tourism in oen or other of our markets. Such problems may make tourism's task more difficult but not impossible.

The number of foreign tourists in 1978 was an increase of 55% on 1972. This growth in volume has had significant implications for the craft industry.

Research in 1972 suggested that tourist expenditure on "visitor purchases" i.e. goods purchased here for export by visitors accounted for an estimated 20% of total visitor expenditure within the country. In 1972 this represented £15m. Tentative results from new research on visitor spending carried out this year suggests the equivalent proportion spent now is around 21%.

In 1978 this represented £45m—a trebling of the 1972 figure.

"In the longer term, the tourist industry in Ireland will prosper greatly.

Mr Miller suggested that the change in the volume and value of tourism spending on visitor purchases must be examined in "real" terms, i.e. by discounting inflation. In this way the true increase in 'output' terms can be seen. The value of tourism revenue in 1978 at 1972 money values was £165.6m.

On the same basis, the real growth in spending on visitor purchases was just £6m from £14m to £20m over the period. So, while value sales increased by 200%, real volume sales increased by 43%. This compares with an increase of 55% in foreign tourists.

The overall tourism target for 1979 was a 10% increase in numbers, with a 9V_% increase in revenue. This expectation, he explained, seemed justified in the early months of the year when higher than anticipated figures were recorded in the numbers of overseas visitors.

However, the early trend was upset greatly as the season progressed when the industry suffered from a variety of unexpected factors. Bord Failte has not yet finalised or published the expected results for the year; however, the final totals may be similar to those of 1978.

"International tourism is one of the most important factors in world trade and its growth rate in the 1970s has been faster than all other sections.

"How should Ireland fare from all this?

Assuming that there will not be increased civil strife in Northern Ireland, we should do pretty well. The major generating markets for Irish tourism accounts for an expenditure of $27m. in 1974. Of this, West Germany, North America and the UK accounts for 60%.

By the late 1980s, these markets will account for over $75,000m, of which the big three will still account for over 60%. Our long-trend growth rate of around 5% per annum measured against the trend in our major markets certainly seems attainable."

Mr Miller went on to state that it is important for anyone involved in the tourist industry in Ireland to know who our tourists are and to have some idea of their motivations for coming here and their needs while in Ireland.

309,000 North Americans came here in 1978; of these, 30,000 were Canadians and the rest from the USA. In coming to Ireland they look for sensations which they perhaps have neither the time nor the opportunity to indulge at home. Heritage, culture, quaintness, a way of lite which is at variance with their own life styles— these are some of the aspects they seek.

But, generally, they are 'armchair' tourists, in that they do not leave at home their innate desire for creature comforts, although they may not necessarily expect to have their needs as well catered for abroad.

American interest and knowledge of

Irish merchandise centres around six products—Waterford Glass, Donegal or 'Irish' tweed aran sweaters, linen, lace and Belleek china. These are known as typically and identifiably Irish.

They expect these goods to be con­ siderably cheaper here than in the States and are somewhat disappointed when this is not so. Status appeals are important in purchasing—hence the Irish identity and known Irish quality.

The Celtic influence in design is not as well known as we might think. To the extent that the American is interested in uniqueness and authenticity, the use of Celtic design may hold greater potential for development if promoted strongly as Irish.

Americans are by far the biggest spenders in Ireland on crafts; they have a likeness for department stores and a very considerable proportion of their money is spent in Dublin.

In 1978, 1,058,000 visitors from Britain holidayed in Ireland. Of these, 52% are Irish-related. Approximately one third of the total arrive during the peak months of July and August, another third in the shoulder season (May/June and September/October). The more impor­ tant parts of the country for these visitors are Cork/Kerry, Dublin, Galway/ Mayo, and the South-East.

English tourists are more conscious of value of money, and probably more able to judge what constitutes value for money because they have a better understanding of the prevailing standards.

English visitors are most likely to pur­ chase at craft shops.Thus, promotion, display and excellent and unique design are essential to motivate this market.

Increasingly, growth in tourism to Ireland will come from Continental Europe.

286,000 visitors from Continental Europe came here in 1978. Of these, 86,000 were Germans, 79,000 French, 41,000 were Dutch, 25,000 were Belgium/ Luxembourg and the balance were from Austria, Switzerland, Italy and Scandinavia.

French visitors to Ireland are drawn pre­ dominantly from the more well-to-do (upper and middle class) segment of the population. They tend to be widely travelled, young, from an urban back­ ground (a considerable proportion are Parisian). In view of their comparatively up-market profile, it would be assumed that, as tourists, they have acquired discerning instincts—their tastes are sophisticated to the point where they seem to crave simplicity, provided it is

authentic, aesthetic and pleasing. They are attracted to Ireland by the prospect of scenic beauty, tranquility, lack of commercialisation, culture.

The type of Germans who holiday in Ireland are more prepared to sample life in Ireland at first-hand, rather than from the comparative security of a wellorganised, 'comfortable' holiday. The scenery, traditions, way of life and human contact are all important com­ ponents of their holiday.

In terms of their ability to purchase, Europeans do not appear to spend as much as they might or even as they wish to. Irish authenticity is essential simply because European crafts available to them from such a wide variety of countries provide very severe competition. This is illustrated by the ever increasing popularity of traditional Irish music in Europe which is regarded as "real," authentic and of great intrinsic value. The same must apply to crafts if they are to realise their full potential for European sales.

The tourist industry undoubtedly has a significant effect on the craft industry. If tourism prospers, so will crafts. It is interesting that the dis­ tribution of craft outlets mirrors the distribution of tourism revenue throughout the country: Region

%of Outlets

Dublin East South-East South Mid-West West North-West Midlands

10 14 14 22 11 14 11 4

% of Revenue 18 10 12 21 9 12 11 7

"The major problem facing \our indus­ try," said Mr Miller, "is price competit­ iveness. Increasingly Ireland, and indeed Europe generally, is becoming expensive and real per capita expenditure is not keeping pace with inflation here. There­ fore, people will substitute elements of their holidays. Should this continue and the domestic prices appear unattractive to foreigners, then spending on crafts could slacken.

"Our research in the early 1970s sugges­ ted that the North American market was the biggest one for visitor purchases. This probably has not changed although Europe has more significance than it did. The relative purchasing pattern at that time was:

Market

Britain North America Europe Others Northern Ireland

Ratio of Expenditure £1.00 £4.90 £3.00 £2.20 £1.20

"Our recent research, not yet complete, suggests the following order of magnitude of visitor purchases: Women's clothing Crystal/glass Men's clothing Jewellery China Children's clothing Linen Leather goods Pottery Others

27% 18% 13% 9% 5% 5% 4% 3% 3% 13%

Observing the tourist craft market there appears to be an increasing demand for higher standards and for 'up-market' distinctively Irish products. To meet this, performance needs to be improved and new craftsmen of high calibre encouraged into the market. In many areas production also needs to be stepped up and greater consideration given to supplying Irish outlets ahead of export markets. There is, also, a shortage of well-finished products in the lower price bracket which opens the doors to imports, often of bad design. Constant attention to packaging, labelling and presentation is needed to make more products interesting to "compulsive" purchasers.

"There is one complaint we get con­ tinually and that is the non-answering of letters and the non-delivery of products, not necessarily by small producers. There is an urgent need to raise business standards and sales ser­ vice. If excellence is intrinsic to good craftsmenship, it should be extended to all elements of the crafts industry."

Cautious Buying at Trade Fair The 1979 tourist season, with both petrol and postal problems bedevilling it, was one which, in spite of a lesser drop in sales than some might have expected, created a cautious attitude among buyers.

Despite the overall increase in sales during the fair, there were areas in which sales were lower than exhibitors had hoped for. Both ceramics and jewellery sales showed that buyers were being cautious and while the latter category was affected by uncertainty in terms of raw material prices, the former was affected by a knowledge among buyers of stocks higher than usual.

The impression gained was that once positive indications of a good season begin to make themselves evident, there may well be a hurry to order and crafts­ men could find themselves busy and buyers possibly sorry that they were not more courageous.

Exhibition Craft Potters Society of Ireland are holding a major exhibition of work by their members commencing 16 April'at the P.J. Carroll & Co Headquarters, Grand Parade, Dublin.

Post Graduate Training Centre Plans for the Kilworth Project are well advanced and with the building renovation nearing completion and the planning of the studios now in hand.

The Kilworth Community Association has given to the Crafts Council a great deal of co-operation and they deserve congratulations on their belief in the Project and in the contribution it will make to the village.

In the long term Kilworth has the potential to become a major cultural centre for a wide area which includes the towns of Fermoy and Mitchelstown and, indeed, the city of Cork, which is only twenty-four miles away.

It is hoped to issue details of the method of application and choice of entrants for the Project to craft departments of the art colleges within a short time. Details will also be carried in the Newsletter.

Your Friendly Bank Manager At the recent Conference in Cork, Mr Brian Leaney of Allied Irish Banks spoke of the fact that the financial community has, for some years now, added its voice of support to the needs of the smaller business and that there is an ongoing commitment within the industry to continue to facilitate and aid smaller ventures. The Banks are continuing to explore further methods to assist smaller enterprises and there is a genuine desire to ensure that the needs of the smaller man will continue to be met as far as is possible. The Banks, he pointed out, have an ongoing dialogue with bodies such as the IDA and he envisaged a further strengthening of this liaison.

"The current liquidity difficulties," he said, "and consequent shortage of funds for lending, underlines the need for tight financial planning and I would stress that it is essential that the correct emphasis be attached by you to the need to quantify accurately your financial requirements. The scarcity of finance, amongst other things, has contributed to the very high cost of borrowing and I would urge you again to consider care­ fully in consultation with your financial advisers, the financial structuring of your enterprises with a view to minimising as far as is possible your dependence on very expensive borrowed funds."

A great many smaller business entre­ preneurs are in need of a working know­ ledge of business finance and find little time for self-education in such matters.

The need for help is obvious and the question is posed as to who should pro­ vide the guidance and help. "I have little doubt that the firm's auditor and its Bank Manager are still the prime sources of help," Mr Leaney said.

For those who do not avail of the services of an Auditor, the Bank Manager become the number one source of assistance, and it is imperative to ensure that craftsman and Bank Manager enjoy the right sort of relationship. "If you feel that you have not got the right kind of relationship at present, then I would strongly urge you to sit back, take stock of your situation and then discuss matters in a realistic fashion with your Bank."

The Bank Manager should have available to him details of every aspect of the operation right through from the source

of raw materials, craft production process and the sales arrangements. Also, the Bank Manager should have a grasp of the craft process and especially should be fully au fait with any par­ ticular aspects of the business which have the potential to cause cash flow problems. Armed with this type of information, the Banker is in a much better position to evaluate any request for finance and if it is necessary to refer the application to a higher authority within the Bank, he is far better equipped to argue the project objectively. If he is kept well advised of plans and progress, requests for additional support will not, if they are legitimate, come as any surprise and the response is far more likely to be satisfactory. Also, by keeping him well informed, he will be able to guide on the advisability or otherwise of taking a certain course of action.

Mr Leaney covered in some detail the sources of finance, such as fixed capital, long term debt and short term debt, covering such areas as overdrafts, term loans, hire purchase and leasing. On this latter he said that it could be of interest because it is "a method of acquiring the use of capital equipment without actually having to purchase it outright.

In general, the main advantages are (1) no deposit or down payment; (2) immediate use of the equipment; (3) finance not tied up in fixed assets and (4) borrowing ratios are unaffected.

However, a copy that is most likely to enjoy the greatest advantage from leasing is one that has a tax advantage."

On the matter of application for facilities from any of the financial institutions, these should be accompanied by audited accounts for the past three years, together with Projected Balance Sheet and Profit and Loss Statement for the coming year. In addition, a cash forecast for the coming twelve months will invariably be requested. "Those of you who are already incorporated as limited companies will already be familiar with these requirements and preparation of this data together with the outline of your application will be a joint exercise with your accountant.

For those of you who are sole traders and have not got audited accounts or who do not use the services of an accountant, I would recommend that you discuss very carefully with your Bank Manager your anticipated financial requirements. To avoid liquidity crises, where you suddenly find yourself short of cash, it is very important that you try to estimate on paper, in advance, on a monthly basis,

your receipts and your payments and set out to measure how the net effect of these inflows and outflows will impact on your cash situation. Such an exercise should be a simple operation, it should not become choked with detail and become over-complicated as a result.

This more or less brings us back to where we started, namely that your Bank Manager's knowledge of your business will be crucial in his evaluation of your application."

Annual General Meeting The Annual General Meeting of Crafts Council of Ireland will take place this year in Jury's Hotel, Limerick.

The day, now fixed, will be Tuesday 22 April and the time 2.30 pm.

Agendas and other documentation will be circulated to representatives of the member organisations. Nomination papers for vacancies on the Management Committee will also be circulated.

Member organisations which have not paid their annual subscriptions will, under the Articles, not be entitled to vote at the AGM.

International Seminar for Wood Turners A two-day Seminar at Parnham House on Saturday 14 and Sunday 15 June 1980 will be of great interest and importance to wood turners, both individual craftsmen and those working in industry, and to designers, students and lay people.

Contributors Stephen Hogbin (Canada) Neville Neal (UK) Richard Raffan (UK) Bob Stocksdale (USA) Frank M Knox (USA) Stephen Bayley (UK) Paul Smith (USA) Exhibitions to coincide with the Seminar have been organised.

Fee The Seminar fee is £50 per head; this is inclusive of all lecture sessions, meals and refreshments on Saturday 14 June, and attendance at the demonstrations on Sunday 15 June.

Applications for Tickets Applications should be made through the Crafts Council of Ireland. The number of places is strictly limited and early registration is urged, certainly by 31 March 1980 latest.

Amoxon A T O M mM ©ninrun) M E W YOUNG POTTER COMPLETES CRAFTS COUNCIL AIDED TOUR Lisa Young, winner of a CTT Design Scholarship award which she opted to spend visiting and studying ceramic studios in Europe to widen her know­ ledge of her chosen profession, returned to Ireland before Christmas.

Her itinerary was arranged by the Crafts Council using its close contacts with equivalent organisations in Europe, members of World Crafts Council. Lisa reports on the exceedingly helpful people she was put in touch with, from Alex Valsamakis in Athens who arranged visits to potteries in Crete and other islands in the cold Greek winter, to Hannibal Salvaro in Zagreb, himself a potter and Yugoslavia's representative at WCC European Regional Assemblies.

She was passed from country to country, given in all cases very special treatment and a great deal of genuine hospitality and help in her study tour which covered specific ceramic areas in Greece, Italy, Yugoslavia, Germany and Holland.

MAYO CRAFTS ASSOCIATION Phillipa Coughlan, secretary of the Mayo Association and compiler of their Autumn/Winter newsletter, has included in that edition details of financial assis­ tance available to craftsmen from the IDA, and also measures to encourage the expansion of existing craft workshops.

The Association plans a number of craft demonstrations in various centres during the coming year, beginning with a demonstration of lathe work to members at the next meeting in Westport. This will be given by Frank Chambers of Ballycroy.

NEWRY ANDMOURNE COOPERATIVE In support of the Youth Opportunities Programme of the Department of Manpower Services in Northern Ireland, Newry and Mourne Cooperative opened a new crafts workshop in Crossmaglen. It will provide training in beaten copper, jewellery, machine knitting and lace work. Fifteen young people are now accommodated.

The Newsletter hopes to have a fuller report from Lisa in a future edition.

PREMISES AVAILABLE WEAVING COURSE Two-week weaving courses will be held in Clonakilty, Co Cork during the summer The courses are residential and run from 14 June to 20 September. For further information contact Rossmore Weaving Workshops,The Old Convent, Rossmore, Clonakilty, Co Cork or Crafts Council.

Craftsmen seeking a location in the east Galway area might be interested in knowing about a premises, potentially suitable for craft workshops. Housing •accommodation is also available. Further information may be obtained from the Crafts Council of Ireland, or from the County Development Team, County Buildings, Galway.

CHAIR CANING NEW VENTURE IN CRAFTS Early in 1980 a new Craft Complex will open just a few miles west of Cork City.

In traditional rural setting, craft work­ shops will be available for rental by a dozen or so different craftspeople, situated around an enclosed courtyard.

A shop to sell all produce of the work­ shops is included, and tourists will be encouraged to visit the centre. Further details on workshops, terms of rental and development plans may be obtained from: Fred Williams, Lodge House, Aherla, Co Cork. Telephone: Aherla 136.

Leslie Reisz, recently returned to Ireland from the USA, is skilled in both traditional Irish rush weaving and American chair caning and willow techniques and has set up in business, repairing and restoring chairs and furniture requiring these skills.

The telephone number is 01—322547.

Crios weavers required, willing to use

our yarn. Cleo Limited, 18 Kildare Street, Dublin 2. Telephone: 761421.

MURIEL GAHAN SCHOLARSHIP AWARD 1979 Mrs Kathleen O'Donoghue of Lettergesh, Connemara, is the 1979 recipient of the Muriel Gahan Annual Scholarship Award presented to An Grianan early in 1979 by Crafts Council of Ireland.

As agreed by the Council, this award is linked with the RDS Craftsmanship Scheme, inaugurated by the Society in 1951, "to assist local effort in the encouragement of craftsmanship in handwork, and the development of Ireland's traditional country crafts."

Mrs O'Donoghue was recommended for the scholarship by her local community, and subsequently by Country Markets, organisers of the Craftsmanship Scheme.

"Ways with Wool" was the special An Grianan course designated for the scholarship's winner's attendance, funded by the award. The course was one of those at the College's Silver Jubilee Meitheal in October. On the evening President and Mrs Hillery honoured An Grianan with their presence, the Crafts Council's special award scroll was presented to Mrs O'Donoghue, and she expressed her gratitude for the opportunity the scholarship had given to her to attend this An Grianan course, on the special occasion of the College's Jubilee Meitheal. The scroll itself was much admired; its paper was hand-made by Jill Breivik; its wording and decoration are specially appropriate to its purpose of being a prized record of the occasion.

It is good to know that, as a follow-up to this award, and 1978's Craft Workshop organised local effort in Tullycross, Letterfrack and Cleggan areas is putting into action a comprehensive programme of craft development based on local materials and tradition. Lumra work will be Mrs O'Donoghue's special care, and as a member of Tullycross Country Market and ICA Guild, she will be much involved in the cooperative organisation planned.

FOR SALE John Clarke of 20 Greenfield Park, Dublin 4 (telephone 777659) has spinning wheels for sale—made from New Zealand beech. They are priced around £50.