I move that the Bill be now read a Second Time. The Bill arises out of a review which I have had carried out with a view to ascertaining what changes were required in present legislation dealing with the Institute for Industrial Research and Standards. The original legislation under which the Institute was established was enacted in 1946, and an amending Act was passed in 1954. As it is now fifteen years since the original Act was passed, it is not perhaps surprising that it has been found necessary to amend the existing legislation. This Bill is designed to overhaul the functions, powers and organisation of the Institute so as to enable it to function more effectively.
While it is proposed in the Bill to repeal the 1946 and 1954 Acts I should like to make it clear that the changes now proposed are not very radical inasmuch as the Institute as set up in 1946 is being continued in being, although its organisation, financing and functions are being adapted in the light of experience of their working.
It might help the House if I indicated briefly the main changes which the Bill is designed to bring about in the present arrangements. Perhaps the most important change proposed is that relating to the organisation of what might be described as the governing body of the Institute. Deputies will be aware that the Institute's functions under the 1946 and 1954 Acts were discharged by several constituent parts, namely, the Industrial Research Committee, the Standards Committee, the Director and the Council. The new Bill provides for the concentration of functions in the hands of a single entity in the form of a Board which is to be established. This simplification in the organisation of the Institute is designed to improve its efficiency. The Board will be responsible for the general government of the Institute and the administration of its affairs. It will be appointed by the Minister for Industry and Commerce and will consist of a maximum of nine members.
Deputies will recall that it had been hoped to keep industry in close touch with the work of the Institute through the Council, which comprises, in addition to the members of the Industrial Research Committee and of the Standards Committee, not more than fifty ordinary members, each of whom was appointed for his special attainments. I want to pay tribute here to these gentlemen for the selfless service they have rendered to the Institute in the past.
It was found that because of its size and the infrequency of its meetings it was not possible for the Council to fill to its own satisfaction the role for which it was established. It is proposed, accordingly, to have no Council in the reconstituted Institute. Instead, the Board is being given authority to appoint such ad hoc Committees as it sees fit to assist and advise it in carrying out its functions. The revised arrangements now proposed should have the effect of introducing greater flexibility into the conduct of the Institute's affairs, of broadening the base of the Institute, and of giving it more latitude in determining the appropriate industrial and scientific contacts which should be enlisted to help towards the solution of specific problems.
The functions of the reconstituted Institute will be, broadly, similar to those of the present Institute. It is proposed, in addition, to vest the Institute with authority, where the public interest so requires, to undertake or assist in the development or exploitation of inventions. It is felt that this would be a desirable extension of the existing powers of the Institute to conduct scientific research.
Under the present legislation, the maximum annual grant from funds provided by the Oireachtas which may be made to the Institute for expenses of administration is £35,000. It is proposed to remove this limit, and to arrange that, each year, the Minister for Industry and Commerce, with the concurrence of the Minister for Finance, will propose in the Estimates a certain sum for approval by the Oireachtas. With the expansion of industrial enterprise in this country, with the greater awareness which we may expect from industrialists of the necessity for a scientific approach to production, we may anticipate an increase in the activities of the Institute in the future. To this end, three new laboratories have recently been completed and handed over to the Institute. The object of the removal of the present statutory limit on the level of the annual State grant is to ensure that the Institute will not be prevented by lack of funds from using those new facilities to the best possible advantage.
This greater flexibility in regard to financial matters should I feel be accompanied by similar flexibility in regard to staffing arrangements. At present, the numbers, grades, remuneration and conditions of service of the staff are subject to the approval of the Minister for Industry and Commerce, given with the consent of the Minister for Finance. The new Bill is designed to remove this control, except for such posts in the Institute's service as are designated by the Minister for Industry and Commerce as posts of special responsibility. The change proposed will, it is hoped, make it easier for the Institute to recruit suitable personnel for the various posts in the organisation.
The connection between the Institute and Industry which it was created to serve should be as intimate as possible. Towards this end, provision is made in the Bill whereby industrial firms and other bodies may become associated with the Institute on payment of an annual fee, in return for which they can become entitled to certain facilities from the Institute. The exact terms of the relationship which will thus be created between the Institute and the associated firms will be a matter to be worked out by the Institute.
In regard to standard marks, the Bill provides that certain functions, which are at present exercised by the Minister for Industry and Commerce, are transferred to the Institute, and some other minor amendments which appear desirable in the light of experience, are also proposed. The most important change in this respect is that which empowers the Institute to grant a licence to use a standard mark. This is at present a function of the Minister for Industry and Commerce.
The new Bill also provides for the prescription by the Minister for Industry and Commerce, if he is satisfied that it is in the public interest, of compulsory standards for certain commodities intended for sale. In recent years, public attention has been focussed on the fact that there was no power to prevent the sale to the public of articles which may constitute a hazard to life or health. The provision to which I have referred seeks to remedy this deficiency, and it is the intention normally to utilise the powers involved only for the protection of life and health. There is no intention to make compulsory the ordinary standard specifications which will be drawn up by the Institute.
The Bill makes other provisions in regard to finances, accounts, and audits, annual reports, Board procedure, offices and premises, and other matters, which are generally on the lines of those approved by the Oireachtas for other State-sponsored bodies.
In regard to the general merits of this Bill, I feel that there should be general agreement to any measure which is designed to improve the working of the Institute for Industrial Research and Standards. This Bill will, I believe, have this effect. The days are long gone by when industry could afford to carry on from year to year with the same old processes and practices, and in every country it is increasingly recognised that scientific research is essential to any worthwhile development of resources in the industrial field. This is more than ever important for this country which has poor natural resources of raw materials, and the additional handicap, so far as human resources are concerned, of a lack of tradition in industrial and managerial skills.
For this reason, there is a very urgent need for industrial research to improve technical processes and techniques, to develop new processes and new products, to promote the use of substitutes and by-products, and to eliminate waste. This research is expensive, and the smaller type of industrial firm which we have in this country is often not in a position to provide the skilled staff and the laboratory equipment to investigate its own working so as to find out newer, more efficient and cheaper ways of making a better article. The Institute exists as a central organisation to provide these facilities for industry. It has, or will have, the skilled staff and the equipment to do the job.
I should like to see a greater awareness among industrialists firstly of the need for scientific research and, secondly, of the great advantages which they can achieve from utilising the services which the Institute provides for them. This Bill represents an effort at improving the organisation of the Institute and giving it more independence with a view to improving its working and making it a better servant of industry. I recommend the Bill to the Dáil, and I feel sure that the general principles of the Bill which I have outlined will receive approval.