Vol. 384 No. 6
asked the Minister for Industry and Commerce if private sector interests are now involved in providing any of the services previously offered by the National Software Centre which was closed down last year by the IDA; and the services, previously provided by the centre, which are not now being provided at all.
11.
asked the Minister for Industry and Commerce the reason he closed down the National Software Centre; and the number who lost their jobs as a result.
27.
asked the Minister for Industry and Commerce if he will outline the way in which services previously provided to industry by the National Software Centre are now being provided to industry.
38.
asked the Minister for Industry and Commerce if there was any connection between the decision of the IDA to close down the National Software Centre and the fact that one of the first trading houses to receive a licence from his Department is operating in the software centre.
I propose to take Questions Nos. 9, 11, 27 and 38 together.
As I stated in reply to a question in this House on 31 May 1988, the decision to close the National Software Centre was taken by the Industrial Development Authority. I am informed that 11 people were employed in the centre prior to its closure.
I have already discussed in this House the reasons for the closure of the centre. I refer Deputies to cols. 636 to 639, vol. 381 of the Official Report for 31 May 1988 but I would like to add that there was no connection between the IDA's decision to close the centre and the issue of licences to trading houses.
Since the closure of the centre, the various State industrial development agencies, in providing a wide range of supports for software companies to assist in their growth and development, have, for the greater part, maintained the activities of the centre. These supports were tailored to address all the principal needs of software firms in terms of marketing, financial resources and consultancy services.
Two areas where, perhaps, the activities of the centre were not specifically substituted for by the services of the industrial development agencies were in the direct selling of software on behalf of firms and in undertaking international research contracts for overseas customers.
In one of these areas — namely, the selling of software from firms within the sector — the licensing of the first trading house under the Government's trading house initiative may well serve to offer opportunities for increased exports of Irish software. I am not aware of what other ways private sector interests may currently be involved in providing any other services.
Finally, my views on the actual and potential value to Ireland of the software sector are already well documented. This was further underlined by my announcement yesterday at the launch of the study of the sector by the Information and Computing Services Association that I intend to appoint a committee to devise a strategy for the development of the software sector. The strategy will aim to develop a framework within which the sector can maximise output and employment and compete effectively in international markets. It will also take account of the likely developments for and within the sector arising from the Single European Market in 1992. The committee will consist of representatives from industry, including the software sector itself, from the main industrial promotion agencies which have a continuing involvement with the sector and from the Department of Industry and Commerce. Its brief will be to complete the preparation of the strategy within three months.
I had in fact, in consultation with the industry, been holding back my plans for the appointment of a committee until I received this report because I had always considered that the report would be an important input to the formulation of a strategy for the sector.
Would the Minister agree that his decision to appoint a committee to prepare a strategy for the software centre is an indication that the IDA decision, taken with his knowledge and support, to do away with the pre-existing National Software Centre was in fact a mistake? With regard to the direct selling of software, would he further indicate that it is the case that we have a private trading house taking over at least one of the functions formerly performed by the National Software Centre? Could the Minister say definitely that there is no connection between those two events?
None whatsoever, I am surprised the Deputy is being so facetious as to suggest such a thing. The Deputy knows that selling software is only part of the centre's function and that the other activities are not being carried out by any trading house.
Second, I remind the Deputy that when the National Software Centre was set up — the Deputy should remember things of the past before starting to talk about them — it was set up with a target of self-sufficiency. By no means was that target achievable in 1987. It was a subsidiary of the IDA and the former Minister knows full well that the IDA cannot keep an insolvent company in place, unless it decides to put in more money. The future of the centre was clearly in doubt when the former Minister was leaving the Department and I am surprised that he has bothered to raise the issue here because like me he does not keep white elephants around.
On that basis the IDA should be closed down because it does not cover its costs.
If you want to suggest that the IDA should be closed——
I do not see what the difference is.
Are you asking for the closure of the IDA?
Is it not the case that the National Software Centre was designed to provide a service, just as the IDA is providing a service and that the Minister is justifying the closure of the National Software Centre on criteria that could equally be applied to other agencies, but are not applied to them?
The IDA made the correct decision. The National Software Centre was getting deeper and deeper into debt and was not meeting the objectives for which it was set up. Is Deputy Bruton suggesting that I should keep such an outfit going? In honesty, I do not think he is.
They threw away the opportunity.
