Dáil Éireann debate -
Wednesday, 3 Dec 1986

Vol. 370 No. 6

Establishment of EUREKA Secretariat: Motion.

Minister of State at the Department of Industry and Commerce (Mr. R. Bruton)

I move:

That Dáil Éireann approves the terms of the Memorandum of Understanding, on the establishment of a Secretariat for EUREKA, copies of which were laid before Dáil Éireann on 28th November, 1986.

EUREKA is an association of Western European countries involved in international collaboration in the area of research and technology. It was established by a Conference of Ministers of 17 countries, including Ireland, and members of the Commission of the European Communities, meeting in Paris on 17 July 1985. These countries comprised the 12 EC member countries plus Austria, Finland, Norway, Sweden and Switzerland. Since the meeting in Paris, Turkey and Iceland have been accepted as additional member countries.

The objective of EUREKA is to raise the productivity and competitiveness of Europe's industries and their national economies on the world market. This is to be done through closer co-operation among enterprises and research institutes in the field of advanced technologies. The rationale behind this is to strengthen the basis for lasting prosperity and employment in Europe being faced with competition from the USA and Japan in the technology area. At a meeting in Hanover on 5 and 6 November 1985 the Ministers of the 18 countries at that stage — Turkey having joined — and a member of the Commission of the European Communities approved a Declaration of Principles which would form the guidelines under which EUREKA would work. The Declaration of Principles adopted at Hanover establishes the guidelines for the operation of EUREKA. It does not involve the making of payments outside the State.

The Ministers agreed at Hanover that a small flexible secretariat under the responsibility of the EUREKA Conference of Ministers would be established to enhance the transparency and efficiency of EUREKA. The establishment of such a secretariat is in the interests of smaller countries like ours without which there is a danger that we would lose the opportunity to become involved in many of the research projects. If you like, the secretariat would be involved partly in a broking activity which would be of particular interest to smaller countries and those with smaller and medium-sized industries. The main tasks of the secretariat would be to collect and disseminate information, thus offering the services of a clearing house; to assist enterprises and institutes in establishing contacts with partners for EUREKA projects: to give support to meetings of the Conference of Ministers and of the higher representatives — senior officials in the member countries — and to provide for continuity in the tasks to be performed.

The secretariat comprises seven professional staff, one of whom has been designated head of the secretariat, and up to six secretarial and clerical support staff. The professional staff, excluding the Head, will consist of three nationals of different EC member states, two nationals of non-EC member countries and one person from the EC Commission. Support staff will be nationals of any EUREKA country. The professional staff will each serve for a minimum of two years or for a maximum of three years, at the discretion of the group of higher representatives.

The professional staff posts will rotate between EUREKA countries in such a way that within a maximum period of nine years, all countries will have an opportunity to fill a post. All professional staff will be nominated by the Governments of the EUREKA countries concerned or by the European Commission, after consultation with the head of the secretariat to ensure the appropriate range of skills necessary to the functioning of the secretariat. It has now been agreed that for the first three years the head of secretariat will be a French national, and the other professionals will comprise Spanish, Dutch and Swiss nationals.

The cost of the secretariat will be met as follows: all costs of professional staff — including salaries, pensions, expatriation and post-adjustment allowances, accommodation, travel on home leave — will be borne by the EUREKA member nominating each staff member. Office costs — including rent, utilities, initial office equipment — will be borne by the country in which the secretariat is located. All other costs — including the costs of support staff, travel by all staff on secretariat business, telephone and telex charges, office equipment after the initial stage, installation and the running of a computerised data base — will be borne by the EUREKA Governments and the Commission of the European Communities which for this purpose, is treated as another member state. In that context Ireland's share will be about three-quarters of 1 per cent and, in the first full year of operation, 1987, we expect that to amount to approximately £12,000 or £13,000.

A memorandum of understanding concerning these various matters in relation to the secretariat was agreed by the Conference of Ministers which was held on 30 June 1986. The memorandum of understanding was signed by 18 of the 19 participating countries — Iceland having joined at that stage — and by the Commission of the European Communities. Ireland was not at that time in a position to sign. The text of the memorandum appears to impose binding obligations including financial obligations on the State. These obligations relate to the costs, other than costs of professional staff and office costs which, as I have described, are to be borne by the EUREKA Governments and the Commission of the European Communities. Because these other costs will involve payments outside the State and will be a charge on public funds it is necessary, in accordance with Article 29.5 of the Constitution to seek the prior approval of the Dáil for the terms of the memorandum of understanding.

I commend this motion for the approval of the House.

Mr. Lyons

Níl deacracht ar bith agam cuidiú leis an rún atá molta ag an Aire Stáit. Tugann sé an-seans dúinn leathnú a dhéanamh ar an tionscal teicniúil atá sa tír seo cheana.

The establishment of a EUREKA Secretariat in Brussels hopefully will accelerate the organisation and co-ordination of research and development activities between European countries. I am aware that negotiations took place between the member states as to where the centre of activity would be located. Whilst we in Ireland should not be holding second place to anybody, I suppose that for practical purposes the secretariat will be set up somewhere in Europe other than here.

I am aware also of the discussions that took place and the pressures that were being applied, particularly by the three larger member states, France, the Federal Republic of Germany and Belgium for its establishment in Brussels. It eventually transpired that agreement was reached and that the secretariat will be located in Brussels.

The provision for a review of the functioning of the secretariat after two and a half years will afford an opportunity to revise its operations, that is, if any such revision is deemed to be necessary. That is a welcome clause.

The launching of the EUREKA initiative by France in April 1985 and its rapid development at two ministerial conferences, the one in Paris in July 1985 and, as the Minister of State said, the other in Hanover in November 1985, underlines the urgency many European countries attach to the priority of co-operation in the field of research and development. This is an area in which Europe lags behind both the USA and Japan. In the future economic progress in Europe depends on concentrating on developing our technological capacity. EUREKA is an association of western European countries and as already mentioned by the Minister, the European Commission. It is good to see countries such as Austria, Finland, Sweden, Switzerland, Turkey and Ireland showing an interest and becoming involved in this European structure.

During negotiations on the basic structure of the project, it emerged that EUREKA will be a very loosely structured entity whose function will be to coordinate research and development activities of the private sector in the area of high technology. It seems that with the emphasis on high technology, it is likely EUREKA will be dominated by the larger States and the firms who have the requisite resources and expertise. I want to emphasise that in some of our activities in the European Community we have been too weak in negotiating matters on behalf of this country. Some Ministers have adopted an attitude that I hope will not be continued in our representation in EUREKA. During the negotiations, the smaller States including Ireland, were successful in providing for the participation of small and medium sized firms in EUREKA projects. That offers scope for involvement in Irish firms. It is particularly important given the need to boost the technology base for small and medium sized companies in our economy. It is absolutely essential that we combine with the smaller nations and stand against the bigger nations.

It is clear that expertise in specific areas such as ordination and bio-technology needs to be increased. If we do not concentrate on building up an adequate local base of expertise we will fail to attract multinational companies to this country and to adequately assist indigenous companies. It is necessary to emphasise again our success in attracting computer firms and high technology firms to Ireland during the years. The setting up of EUREKA gives us an opportunity to build on that foundation. In that regard we must help to boil down mundane measures such as upgrading and replacing obsolete equipment in our research laboratories. The Government must ensure as a corollary to the expenditure on higher education that spending on research and development facilities in our universities and research institutions be increased in priority areas.

It is clear that if we are to plan for the long term development of our native electronic and computer industries in the short term we shall have to increase investment in research and development. I take this opportunity to ask the Government to sanction the £5 million expansion plan for our national micro-electronics research centre located in Cork. We now have an opportunity of indicating our sincerity and our commitment to research and development in the field of high technology and we should immediately sanction what is already approved by the educational authorities and the various boards.

Electronics, as we all know, account for a significant proportion of our exports. In 1985 some 95 per cent of the output of the industry amounted to £3 billion in exports. The sector continues to be dominated by foreign companies of which there are 300 compared with about 50 Irish companies. We must concentrate on building up indigenous electronics firms. The proportion of imported components is unacceptably high at 80 per cent. We should redouble our efforts to produce these components at home and to service the manufacturing side of our electronics industry. We are losing tremendously by not doing so. It is an infant industry compared with the standards in other countries and we should give all the assistance and encouragement possible to produce the components that are at present being imported.

It is not accidental that countries, such as Japan, the USA and Switzerland, who have consistently ploughed resources into research have higher levels of employment than their competitors in the EC. Unemployment is one of the major national crises in this country at present. We have an opportunity to make in-roads into that national problem by taking every advantage of the micro-electronics and computer industries.

An Ceann Comhairle

The Deputy should relate his remarks to the establishment of the secretariat because that is what is involved in the motion.

Mr. Lyons

It is all connected with the establishment of the secretariat per EUREKA. I am outlining how we should endeavour to take all the advantages available to us. I am dealing with unemployment and it is extraordinary to be interrupted — I know the Ceann Comhairle has a job to do — on a matter of such national importance. Technology-based industry will be vital in tackling our employment problem. It is very worrying that despite generous State grants and incentives, the level of research and development carried out by industry is so low. Irish investors need to concentrate more on investment in research and development if Ireland is to develop a strong indigenous industrial sector. In 1985 the international programme of the National Board for Science and Technology secured £13 million of EC funding for research contracts. In fact, Community funds now account for a significant portion of the total spending on R and D in Ireland. Private Irish resources must be tapped if we are to strengthen the Irish research effort in line with Irish needs. I should like to emphasise Irish needs within this new secretariat for the development of high-tech. Indeed, Irish investors should be focusing much more on the development potential of the work carried out by Irish high-tech researchers. The quality of Irish proposals under the various EC programmes was evident in the very high success rate achieved and revealed in the NBST report for 1985. The opportunity is there for us.

We should grasp it, work on it and develop it. There were 215 Irish applications, 13 R and D and demonstration programmes, and 70, or 32 per cent of applicants were awarded contracts.

In the energy programme the Irish success rate was twice the average in the ESPRIT. In the information technology programme the Irish success rate was 60 per cent compared with 25 per cent for other countries. It is clear, therefore, that the high quality of the research carried out by Irish researchers deserves much more attention from Irish investors seeking long term investment opportunities. I am of the opinion that with all the State and semi-State bodies we have, those layers of bureaucracy — I accept that there is a Bill before the House to deal with some aspects of that multiplicity of activity — we are not making advances. We do not have a Minister or a Department to tie all the fragments together. The more we examine this matter the more it becomes abundantly clear that we have the ability and the qualified people to make advances but we prefer to see them leaving Ireland than employing them here to develop our own economy. It is a shame for any Government to allow that to continue. I hope that what Members say in regard to this motion will be noted and acted on. It is obvious that the country has a great potential. We must take advantage of our expertise if we are to be serious about the trend that has been current in regard to unemployment.

We have many people qualified from third level institutions ready for the Government to create the climate that will give them jobs. At the level of the European Community while initiatives such as EUREKA are to be welcomed much more needs to be done. The Community, it must be acknowledged, has undertaken a very wide ranging programme to foster European technological development and promote a European technological community. However, much more needs to be done to narrow the gap between Europe and her competitors. The signs of weakness in Europe's technological capacity are clearly evident. In that regard I should like to mention the successes in the US, Japan and Switzerland. Since 1982 the annual growth in real terms in the production of high-tech goods in Europe has not exceeded 5 per cent while the rate in the US has been 7.6 per cent and in Japan it has been 14 per cent. I am sure nobody in Ireland is waiting for the introduction of this motion to be told about the growth in Japan. We have seen evidence of that in the past two decades. The trade balance in Europe for output with high-technological content has been zero, or near zero, since 1979. Yet in 1963 it was in surplus to the extent of about 3 per cent of GNP.

Europe's performance in relation to information technology is poor. In 1984 our trade deficit in the electronics sector was over £9 million and in 1985 it was estimated at £12 million. That poor performance was logged in what is already one of the most important world industries which by 1990 is projected to be the most important manufacturing industry in the world. It is clear that Europe's technological capacity will be improved when the Community enjoys one unified internal market. It will be able to compete with the markets of the US and Japan and will replace the present fragmented market in the Community. It is also clear that Europe needs to learn from the example of the US where venture capital is readily available for new high-tech business. In Europe we have not concentrated on the investment needs of small innovative firms. On the domestic front the need for that has been established and, if confirmation is needed, it can be obtained in the most recent ESRI report issued last night. According to that, the lack of investment there has had serious adverse effects on our economy. The boom Ministers have spoken of so often has not materialised. We were told that a boom in consumer spending was around the corner and that, as we were told yesterday, consumer spending had increased by 2.5 per cent but the ESRI report contradicts that.

An Leas-Cheann Comhairle

Will the Deputy return to the EUREKA motion?

Mr. Lyons

I am dealing with EUREKA and the need to expand our resources and technological abilities here. While it remains to be seen how the EUREKA programme works out in practice, it is clear that a number of Irish companies have already committed themselves to EUREKA projects. I should like to see a greater response from Irish industry to EUREKA in conjunction with foreign countries in deference to the need to boost our research and development capacity. If those Irish firms are to become more involved in projects under EUREKA, it is only reasonable to expect that they will have the full support and confidence of the Government of the day. It is difficult to expect Irish companies to be out in the forefront at a time when there is such a lack of confidence. Some change will have to take place to restore this. "Más maith, is mithid", as I said earlier.

There has been speculation about the possibility of a relationship between EUREKA and the American Defence Initiative, SDI —"Star Wars" as it is more commonly known. It is up to the Minister of State whether he will refer to that matter. We hope economic development and expansion will arise for us and for the other EC member states from EUREKA, but any connection with military activities or anything related to them must be given the serious consideration it deserves by Ireland. We do not want to have hand, act, truck or dealing with military activities as a member of EUREKA any more than we do in the broader European Community. EUREKA is concerned to boost civil research activities in the EC and any indication that it will become involved with the US "Star Wars" must be resisted immediately.

From our perspective, the two initiatives, military and civil, are not linked and we should not permit them to be linked. I pointed out earlier that it is glaringly obvious that Europe has fallen behind the two most successful economies, the US and Japan, in the matter of technological development. With the concentration of massive resources aimed at boosting the US research effort, not purely the military aspect——

An Leas-Cheann Comhairle

I do not think "Star Wars" are involved.

Mr. Lyons

I am glad you interrupted because I can quote from documents in which this aspect was discussed. I did not pull this out of the clouds.

An Leas-Cheann Comhairle

This motion concerns industrial research and technology.

Mr. Lyons

I agree, but we see it going on. The EC began as an economic community. The title of that community has been dropped——

An Leas-Cheann Comhairle

The motion does not deal with "Star Wars".

Mr. Lyons

I have put my concern on record. It has been mentioned that there is a possibility of these matters being discussed in future in EUREKA and I want to make it abundantly clear that Ireland and its representatives in EUREKA must resist any military aspects of development in technology. It is feared that Europe may fall even further behind in technological development. These considerations have motivated the EUREKA initiative and led to the proposed intensification of existing EC research efforts through the Framework Programme, 1987-1991.

I welcome the EUREKA initiative. The Minister of State cited some of the memoranda which, he said, were laid before the Dáil. I will make a few references to one document, paragraph 4 of which proposes that the secretariat will assist enterprises and institutions in establishing contact with potential partners for EUREKA projects and provide them with information derived from the data created by the secretariat to the extent that resources permit. I said earlier that there is a danger smaller nations may be left behind or gobbled up and, because of the base we have in Ireland, it is important that all information to be derived and accumulated by our potential partners in EUREKA will be sought and made available to us as an equal member.

Paragraph 6 of the document states that the secretariat initially will consist of six professional staff and up to six secretarial and support staff. The Minister of State indicated — it is in paragraph 11 — that each country through rotation of staff will have had an opportunity over nine years to fill a post on the secretariat. I would not place much emphasis on that because it is only there as a safety measure, but paragraph 7 of the same document states:

Six professional staff being at the head of the Secretariat will consist of three nationals of different member states of the EC, two nationals of different countries among the non-EC members of EUREKA and one person from the Commission of the European countries.

Because of Ireland's success to date in the electronic field, we should make every effort to be in there with a representative from the very beginning and not wait for between five and nine years. Why not have our representative there from the start to fight our corner? The professional staff will be nominated by the participating Governments and it is indicated that there will be consultation with the heads of the secretariat to ensure that those nominated will provide the secretariat with an appropriate range of skills. We have people qualified to represent us and contribute to what the secretariat is suggesting. The grading of posts, the nationality of staff to be appointed initially and subsequently, will be approved by the group of higher representatives. If we do not have a member in this group we will be at a disadvantage in achieving posts in the secretariat. We are well qualified and second to none of these countries. We should be in there as fully qualified members of this sector.

The reference to terms and conditions of employment in the memorandum are not detailed enough for me to make an observation on it. The cost of professional staff will be borne by the member nominating staff members. I find no difficulty with that. The Minister made reference to the terms and conditions applicable to staff, including the two and a half years and it is only proper that these should form part of any such agreement or any such bringing together of nations. I also see that the terms of the memorandum may be amended if the signatories so decide subsequently.

The setting up of EUREKA and our membership of it is welcome. I would strongly emphasise that we should be full members of EUREKA which is being set up to promote areas of high technology and micro-electronic activity of which we already have a good deal here. We are a small nation and the small nations had to meet separately because the three larger ones, the Federal Republic of Germany, France and Britain, seemed to be dominating what direction this body would take and laying down the ground rules. I am pleased that smaller nations like ourselves have more or less challenged that aspect. We acknowledge that these are larger countries and we acknowledge their greater wealth but we must be in there as equal partners. At times I have seen representatives of this country in Europe, particularly in the Commission and in the Council of Ministers, almost apologising for being Irish. I hope that that attitude will not persist into this organisation. I must also say that nobody owes us a living. We must make it ourselves and here is another opportunity, so let us grasp it because it is so important in the age in which we live, an age of change in technology. We must be part of it. We are getting the opportunity and we should grasp it with both hands and work diligently, in co-operation with the other members, to ensure the success of EUREKA economically and in the development of technology.

We must resist becoming involved with Star Wars or any other military activity. Because of the special position that this country has and because of the presence of another member state on this island we cannot be involved militarily or be seen to be so. Any suggestion of military alignment or military activity is out of the question. The development of technology in the secretariat of EUREKA is not to be co-ordinated in any military direction until such time as we in this country would be able to take a different approach on any military activity. We have a position in this country that we hold very dear and I hope that EUREKA will not in any way undermine that position. I refer to our neutral stance and our non-alignment with military organisations. I do not want to see EUREKA being the cause of our contravening that position. Other non-aligned countries have also joined EUREKA. I will refrain from mentioning our reasons because very soon I will have the opportunity to expand on that aspect when we discuss the Single European Act.

Our involvement with EUREKA is for the development of micro-electronic technology and computer technology so that we can compete with other nations of Europe in the development of this technology, with the Japanese and with the Americans. We need this coming together of the European countries. I am pleased that it has happened. We want to be able to use our membership of this body for the development of that industry here. I have outlined that already. Anything I say now would probably be repetitive, but I must emphasise that it is an economic community we became part of and that this development is for the expansion of that community. I suppose I can conclude on the basis of a seanfocail we have sa Ghaeilge: Ní neart go cur le chéile.

Mr. Daly

I do not want to delay unduly the passage of this measure, but it affords an opportunity to put on record the necessity to be involved in the development of science and technology and related research activities over the coming years. At the outset let me compliment some people who have been involved in the research area for some time and who have done some magnificent research in this area. The National Board for Science and Technology have made a major contribution and within the limited financial resources at their disposal have been to the forefront of research and development here for some time. Let me take the opportunity to press on the Minister and the Government the desirability of increasing substantially the funding available to agencies like the NBST to help them to undertake the enormous amount of research that needs to be done in a variety of areas and not least in marine-related activities and developments which have been sadly neglected and which have a huge potential relatively unexploited. At present within the limits of the financial constraints on the NBST, we cannot operate even the one research vessel we have dealing with marine activities and marine research.

It is well recognised that some of the major impediments to the development of industry, to the creation of employment and the development of enterprises over the coming years will be the rapidly changing technological advances which have been made and the difficulty of keeping skilled people capable of dealing and working effectively in this area. Two major problems will hamper development in this area. The first is to keep abreast with the developments taking place; technological changes are advancing at such a rapid pace it will be a major challenge to keep abreast of those changes. Secondly, it will be an enormous challenge to our colleges and institutions to provide the highly skilled personnel who would be essential to be involved in this advancing technological and scientific area which is changing rapidly and where the scientific information and technological changes have overtaken themselves almost on a daily basis. For this reason any involvement in that area will be beneficial to us.

I agree with Deputy Lyons we are not becoming involved here in the Star Wars technology we see taking place in other countries at present. We are speaking here about becoming involved in areas of research and technology, of having the basic skills and expertise here, keeping abreast of modern developments and being able to utilise them to the benefit of industry here. This will allow us to become competitive in industry, agriculture, in fishing and in forestry and will enable us to embark on the areas of technological change which will benefit our economy, provide more jobs and enable us to compete with the best in Europe.

There is no need for me to say here how seriously inadequate our research facilities are at present. I draw the attention of the House and the Minister to the report which was published some time ago about the inadequacies of information technology, word processing and data base information. That report indicates clearly the serious inadequacies there are even here in the Houses of the Oireachtas and the amount of time, energy and effort wasted in becoming involved in research and other activities which could be occupied very usefully had we a modern system of information available to us here in the House. That applies equally to Government. I suggest the Government are seriously hampered at this time by the lack of this data bank information services which would enable them to tune in to international developments and trends in business, economics and whatever and enable them to do the business of Government more effectively and efficiently. It is fine to become involved in the new project we are speaking about today at Community level with the member states who have signed this declaration, but we must tackle the more fundamental issue of our own inadequate technological, research and scientific information and data bank services in our own State and in the House. The very fact that we are so inadequately served in this area and the lack of facilities mean we are wasting time and effort here. Some attempt should be made to remedy this situation at the very earliest opportunity.

It is equally important for the effective and efficient functioning of industry that we have these technical aids and efficient dissemination of information through a modern, sophisticated system. It is well recognised across Europe that because of the inadequacies in the research and development area, European business is stagnating when Japanese and American industry is expanding rapidly. Naturally, the anxiety across Europe is that we are not in a position at European level to keep pace with the developments which are taking place in Japan and the US. We must recognise that a huge area here is relatively underdeveloped in Europe. Any action taken in this regard at European level will be beneficial and we should get the benefits from that here.

At the same time I would like to put on record the work which has been done in a number of areas in pilot research and development activities here. One of these is the microelectronics computer centre at Plassey attached to the NIHE in Limerick. Already some advanced technological developments have identified areas for job creation and areas where more involvement of technology, science and research could provide very valuable businesses. Already there are indications that substantial job creation has resulted in the mid-west region, my region, from the work which has been done at that microelectronics computer centre in the NIHE at Plassey. That development is welcome and must be encouraged and expanded. I hope that our involvement in the understanding and the declaration which has been signed by the Government will enable further developments to take place in Plassey.

We in Ireland at this time should be giving a lead in Europe in this whole area of new and exciting possibilities where now, because of our involvement with US industry in particular, we are as advanced as most countries in Europe. I am alarmed at the fact that in this case the Government have not succeeded, for instance, in having the centre established here in Ireland. What is wrong with the microelectronics centre in Plassey in Limerick that it could not be made the centre for the European agency which is dealing with this whole area? We also have the national microelectronics centre in Cork. I am sure equal development is taking place in Dublin.

We have had close contact with technological development in the US because of the number of American companies that have located in the Shannon Industrial Estate. In Shannon, people like Westinghouse are to the forefront in technological developments and they are involved in many areas of research into various commodities. Very wisely they centred a lot of their research activities in the Shannon region. In the past, one of our criticisms of industry was that we did not get research and development in the subsidiaries of the multinational companies that have established here. Not only have Westinghouse established a certain amount of their research and development in the Shannon plant but they have encouraged young Irish people to replace the American personnel who set up those industries. This is to be welcomed and it is a trend that should be followed by other multinational companies who have successfully established here. They should encourage Irish people to take over the management and running of these businesses. It is recognised that Irish personnel trained in the National Institute of Higher Education and in Dublin are capable and willing to take on these responsibilities and that they have the expertise necessary.

We are losing out under this motion in that we are not in Europe at present involving ourselves in research and development. We should be giving a lead in Europe for once, rather than coming in at the tail end as we have done in most other areas. I notice from the Minister's speech that we were not in a position to sign the declaration when it was laid before the members in June 1986. Why were we not in a position to sign the declaration then? The principles contained in the declaration should be laid before the House so that we will be in a better position to speak and know exactly what we are getting involved in. I am concerned, as is Deputy Lyons, that we may be involved in research into areas in which we would prefer not to involve ourselves.

This motion is relevant because Article 24 of the Single European Act which will be debated here shortly provides for some new initiatives at European level in research and technology. The Single European Act, title 6 on research and development part 3 of the EC Treaty, is being extended now to strengthen the scientific and technological basis of the European industry. That will make the European industry more competitive in the international market and we, being part of the European industry, will benefit from that. Some additional finances will be provided under the Single European Act for the development of the Community and this will benefit industry here especially in areas where we would not be in a position to undertake research ourselves.

Pilot projects in this area will be undertaken. I direct the Minister's attention to this so that, when the Community evolves to a stage where scientific technology areas will be part of the budget of the Community, we will be able to avail of that and identify projects which would be eligible for funding from the Community. I direct the Minister's attention to a section which says that specific programmes will be developed at Community level in the whole area of scientific research and development. Have any specific programmes been contemplated and, if so, will the Minister give some indication as to how this area will be exploited by us? If Community funds are available for research and development we should know what we want, and we should have projects ready in order to get such funding.

At every level of Community activity up to now we have missed out very badly on the funding available in a number of areas. We have been at the very bottom of the league in the amount of aid which we have been able to draw from Europe to modernise our fishing fleets. If there is to be a financial allocation for research and technological developments we should have projects ready for submission to Brussels so that we will not lose out as we have done already in relation to aids for the development of our fishing fleet, our fish processing industry and so on. That equally applies to our agricultural industry.

The Community will create a framework to develop a comprehensive policy in the whole area of technological developments. We must ensure that we are to the forefront in that development. The Government as the agent who submits applications for aid should identify a plan of action so that we will be in a position to submit applications for funding for new developments.

This motion is welcome although we have some reservations. The principles of the declaration should be laid before the House so that we can see exactly what is involved. A certain amount of work is already taking place here and it should be encouraged. As well as being to the forefront in Europe the Government should put their own house in order and consider how research and development can assist industry, agriculture, fisheries and the general development of our economy. Also in this House technological expertise and availability are sadly lacking. That needs to be remedied very urgently if we are to carry out efficiently the duties we must undertake.

Minister of State at the Department of Industry and Commerce (Mr. R. Bruton)

I welcome the enthusiastic support this proposal has received from Deputy Lyons and Deputy Daly. Such enthusiasm is in a good tradition because "eureka" is the word Archimedes is supposed to have cried as he ran naked through the streets of Greece after he discovered his great law about the weight of bodies in liquids.

I will deal with some of the points raised in the contributions. Brussels was chosen because of the clear possibilities it affords of interfacing with research and development work throughout the Community. Industrialists also favoured it because of their familiarity with Brussels, so there is a certain logic about that choice.

Mr. Daly

That is a very weak argument.

Mr. R. Bruton

I do not think we can hope to locate in a peripheral region because the success of this project depends on marrying people from different parts of Europe and bringing——

Mr. Daly

Why not?

Mr. R. Bruton

We need to use established networks and Brussels is suitable in that regard. While, obviously, it would be nice to see agencies located in peripheral regions, in this case where it has a specific task in acting as a broker between industrialists and researchers, there is a strong logic in its present location. I should also like to assure Deputy Lyons that Ireland took a leading role in ensuring that small and medium sized companies would participate in this initiative. We are still actively pursuing this. We have insisted that a special study on the needs of smaller companies should be drawn up by the secretariat and this matter will be discussed by Ministers in Stockholm in December.

I should also like to assure Deputy Daly that there is a high level of interest in EUREKA in Ireland. He is right in saying that the principles have not been laid before the House but I can provide him with a copy of them if he wishes. As I outlined in my speech, the clear objective is to raise the productivity and competitiveness of Europe's industries in the face of an American challenge. The way in which EUREKA seeks to achieve that is through the execution of specific projects by a consortia of industrialists, educational and institutional concerns. It is trying to achieve partnership in these areas. It does not have a fund which it allocates to specific projects; it is more in the way of a broker.

Projects are already under way in agriculture, medicine, transport, information technology, bio-technology and many branches of engineering and material science. Deputy Daly will be pleased to know that marine technology is specifically mentioned among the objectives set out by EUREKA. There are about 130 proposals circulated to date and Ireland has already agreed to participate in two of them. Negotiations are in progress in regard to five other projects in which Ireland may well become involved. There is a significant degree of interest and progress already.

The importance of EUREKA highlights the fact that we have a serious problem here in regard to research and development. I had the opportunity yesterday to present the NBST awards for innovation. In the course of that address, I drew attention to the fact that our spending on research and development is only about one-fifth of US and EC levels. Fewer than one-sixth of Irish companies have any research and development expenditure and fewer than one-twentieth have research and development departments. This is an important initiative which will play its part in raising the profile of research activity in Ireland, especially in relation to smaller companies whom we have sought specially to involve.

I disagree with Deputy Lyon's suggestion that in some way Government support has been wanting or that they have not drawn the strands together. The whole thrust of the industrial White Paper published about two or three years ago was to recognise the deficiency of an approach which concentrated on newly established companies, mainly from foreign sources. The idea is to shift emphasis from grant-aiding capital to the other, more crucial, needs of small and large Irish companies. That includes research and development, marketing, design and so on. It would be quite wrong of the Deputy to suggest that we have been ignoring this aspect. He spoke in glowing terms of the micro-electronic centre and the NBST which are financed by the State. Many other such bodies are also directly financed by the State in this area including the IDA who provide research grants. Research institutes such as the IIRS, An Foras Talúntais, An Foras Forbartha and NIHE in Limerick are also financed by the State.

Mr. Lyons

They are all doing their own thing and should be drawn together.

Mr. R. Bruton

The whole thrust of industrial policy in recent years has been to concentrate on the needs of the smaller and established firms so that they will have the internal strength to develop new products and to do the sort of thing which we are talking about today.

One Deputy asked if SDI was linked with EUREKA. The Hanover Declaration is very explicit on the point that EUREKA is concerned only with civilian research. It includes countries which possibly are even more sensitive in the matter of neutrality than Ireland, including Switzerland, Sweden, Austria and Finland. From the very beginning these countries have been enthusiastic supporters and participators in EUREKA.

Mr. Lyons

They kept out of SDI.

Mr. R. Bruton

The background of the evolvement of EUREKA is clear. The French are specifically concerned about what they used to call the débi Americair as I remember from many years ago. There is a fear that European technology is falling behind in the race and possibly a new fear that big heavy research programmes like SDI could have a spin-off in the civilian end. However, the thrust of EUREKA is specifically confined to civilian research.

I should like to reiterate that the principles adopted in Hanover are available. During the course of my initial address I laid emphasis on the broad thrust of that declaration but I forgot to mention why we were not able to sanction this in London. It arises specifically from Article 29.5.2º of the Constitution which says that international treaties involving commitment of public money to be spent abroad requires ratification by the Dáil.

Mr. B. Daly

If a programme of action has been drawn up by the Government for this area, apart from individual projects mentioned, will it be comprehensive?

Mr. R. Bruton

We do not have a specific programme of action under EUREKA but it involves partnership in regard to specific projects by industrialists and research institutes. We are intimately involved in its operation and we are making efforts to ensure that small and medium sized industries get good opportunities. A specific objective of ours was to establish a secretariat that would act as a broker to bring together the potential partners. Those aspects are very important from an Irish point of view. It would not be true to say we can set out a programme of projects. As I say, there is no fund there from which we can call down money.

Mr. Lyons

May I ask a question?

An Leas-Cheann Comhairle

Deputy Lyons, the motion is agreed.

Mr. Lyons

When the Minister says "secretariat" is he talking about a secretariat which will pull all the strands and the various bodies together?

Mr. R. Bruton

I am talking about the secretariat of EUREKA.

Mr. Lyons

Would the Minister consider setting up a secretariat that would bring the combined efforts of the various bodies together so that we could have the full advantage of the work which is being done in a fragmented manner by these bodies? It is absolutely essential that he make such a move.

Mr. R. Bruton

I will ensure that facility.

Question put and agreed to.