Written Answers. - Functions of Forfás.
Michael McDowell
Question:
51
Mr. M. McDowell
asked the
Minister for Enterprise and Employment
the precise functions of Forfás; whether the functions currently carried out by Forfás could be carried out at a great saving to the taxpayer by his own officials; and if he will make a statement on the matter.
[17246/95]
The functions of Forfás are set out in Section 6.-(1) of the Industrial Development Act, 1993. The section provides that the functions of Forfás shall be to advise the Minister on matters relating to the development of industry in the State, to advise on the development and co-ordination of policy for Forbairt, IDA Ireland, An Bord Tráchtála and such other bodies as the Minister may designate; to encourage the development of industry and technology in the State; to encourage the establishment in the State of industrial undertakings from outside the State; and to advise and co-ordinate Forbairt and IDA Ireland in relation to their functions.
Forfás came into being in the context of an overall restructuring of the industrial development agencies on 1 January, 1994, which of course predated my coming to the office in the Department. Its structure emerged as a response to recommendations of the review group on industrial policy (Culliton) in the area of policy formulation and also as a result of the need to address the issue of co-ordination among the various development agencies. The establishment of a specialist unit within the Department as an alternative to Forfás may have been an option, but the fact is that the decision to set up Forfás was the one taken at the time.
A central theme of the Culliton report was that industrial policy must go beyond a narrow focus on the interventions of the industrial development agencies and concern itself with the wider environment for enterprise. Since its establishment, Forfás has been instrumental in providing my Department with the data collection and analytical support necessary to develop this wider focus. Among the areas in which Forfás has carried out or commissioned research are telecommunications, transport and logistics, technology trends and innovation activity, and the cost competitiveness environment for industry. In addition, Forfás has established advisory groups on taxation, commercial telecommunications, and transport and logistics which bring together relevant experts from the public and private sectors thus ensuring that the developmental needs of Irish enterprise are fully articulated in the development of policy in these areas.
In the area of research and development (R & D) Forfás carries out an important co-ordinating role in respect of the EU-funded framework programmes for R & D. These programmes cover a wide range of technological activities which are crucial to the competitiveness of Irish enterprise and of relevance to various Departments of State. Among the programme areas covered are agriculture and food; health; energy; and environmental protection. The Science and Technology Division of Forfás has also provided substantial analytical support to the Science, Technology and Innovation Advisory Council (STIAC) which reported recently. The recommendations of the council are currently being considered by a committee under the chairmanship of the Forfás chief executive officer.
Forfás also monitors the impact of the activities of the industrial development agencies. The surveys of employment, Irish economy expenditure and research and development provide the essential base of quantitative data from which to assess the performance of manufacturing and internationally traded industry.
In carrying out these functions, Forfás complements the policy formulation activities of my Department and works closely with it. Indeed the complementary structure of Forfás and the Department has many advantages. Because the staff of Forfás working in the areas I have just described are not involved in the day to day activities of the Civil Service, they are in a position to provide the in-depth analytical support which my officials require in order to exercise the wider policy role envisaged by Culliton. In addition, Forfás is well positioned to act as facilitator, bringing together public and private sector experts in the various advisory groups which I have described.
The board of Forfás also plays a vital co-ordinating role by bringing together with experienced industrialists and other business people, the chief executives of Forbairt, IDA Ireland, FÁS, An Bord Tráchtála and the secretary of my Department to help achieve a co-ordinated approach to development policy across the agencies.
In addition to its policy advisory role, Forfás has been undertaking an imporant co-ordinating function in respect of certain management issues which cut across the development agencies — for example, in the administration of the industrial property portfolio which involves both indigenous and overseas companies. This function will shortly transfer to IDA Ireland as already announced. Another important cross cutting management area is that of personnel. Under the provisions of Paragraph 2 of the Second Schedule to the Industrial Development Act, 1993, Forfás is the employer of all staff within the three agencies. While the Act provides for the secondment of staff to Forbairt and IDA Ireland, Forfás retains overall statutory responsibility for the staff so seconded. Forfás has responsibility for the National Standards Authority of Ireland (NSAI) which publishes national standards and provides a comprehensive certification service for products, quality and environmental management systems and for the National Accrediation Board which accredits certification and testing bodies. Forfás is also the body within which the powers and functions contained in the Industrial Development Acts, the Industrial Standards Acts and the Science and Technology Act, 1987 are vested and devolved to Forbairt and IDA Ireland.
The Deputy has asked whether the functions carried out by Forfás could be carried out at a great saving to the taxpayer by my own officials. I do not believe this to be the case. Even if Forfás had never been created, my Department would have required extra resources to carry out the wider policy role which was called for by Culliton. Within the existing structure, the division of functions between the two bodies is, as I have described, a complementary one. And even if it were possible to dismantle Forfás and transfer its staff and functions to my Department, the likelihood is that there would be an extra cost to the taxpayer in the short-term without there necessarily being a prospect of savings in the longer term.
However, all of this does not mean that we should beblasé about the question of value for money. I am committed to the ongoing monitoring of activities of Forfás to ensure that its performance justifies its budget — as I am for the other State agencies for which I have responsibility.
