I move: "That the Bill be now read a Second Time. " Is mór an onóir dom an mBille seo a chur faoi bráid an Dhála. We live in the age of technology. Advances in science and technology since the 1960s and particularly over the past ten years have taken place with bewildering speed. Technology has impacted on all our lives. We see the benefits of technological change in the home, the workplace and in every aspect of life.
The rapidity of that change poses significant challenges to our society. In an era when information and skills are of paramount importance to individuals' life chances, we must guard against the risk of creating a two tier society. It is essential that we ensure that no sector of our society is left behind. The opportunity to learn and benefit from new technology must be available to all, irrespective of factors such as age, socio-economic status or educational background. By ensuring that no inequality results, we not only achieve a more equitable and just society, we also contribute to economic progress, adding to the stock of human capital and increasing the availability of skilled labour.
The sheer speed of technological change also poses great challenges to our economy. In the open markets, most Irish firms are compelled to develop and enhance continuously new and existing products to maintain competitiveness. Increasingly, firms are recognising the importance of investing in staff training and research and development to secure their continued economic viability. At the same time, industry requires a steady supply of well educated workers who will possess not only the latest skills, but who will have the capacity to learn and acquire new skills and to adapt to an ever changing environment.
Education's role is central to meeting these challenges. In terms of inclusiveness, it is necessary to extend educational provision to all groups in our society, while simultaneously developing new approaches to education. A number of initiatives have already been announced in this area and work will continue on the development of further initiatives in areas such as second chance education and the elimination of educational disadvantage.
The education system plays a central role in economic development. The performance of the economy in recent years has been outstanding and the phenomenal rate of economic growth and job creation, allied to low inflation and interest rates, has made us the envy of Europe. Increasingly, it is recognised that recent successes are due principally to the availability of a highly skilled and adaptable labour force. However, continued economic success will be contingent on ensuring that our education system retains the capacity to keep pace with and adapt to the changing needs of industry.
The Tierney report on science, technology and innovation lent its weight to the many voices highlighting the need for greater investment in university equipment, for more money to be spent on research, for producing more graduates in science, technology and engineering and for creating a better awareness of our national system of innovation and the key players in it. The Government accepted the thrust of these arguments in the White Paper and is delivering on them. The new investment fund is a powerful example of this.
The information society report is another of the drivers in this process. Earlier this year, the Government appointed an Information Society Commission to oversee developments relating to the implementation of the report. To highlight its critical importance, responsibility for the initiative has been transferred to the Department of the Taoiseach and a national director has been appointed. Action is happening on a broad front in relation to the thematic areas identified in the report. Specifically in relation to learning, the provision in the new fund for computers in schools is a major boost to the various learning initiatives already under way.
Just as on the learning front, we must address curricula, teacher training and technology deployment. Enterprise must also adapt and use the new technologies and participate fully in key growth markets of the information society. Strategically this means the adoption and use of information communication technologies by enterprise, getting a leadership position in certain sectors of the industry, developing a strong, indigenous software industry and maximising the job creation potential of the information society. The bottom line is that we cannot move fast enough in bringing all facets of our society up to speed where they can participate fully in, and enjoy the benefits of, the information society.
We are experiencing a rapid and dramatic transformation in the shape of our society and of its underlying economic base. The nature of production, trade, employment and work in the coming years will be profoundly different from those that exist today. Similarly, the determinants of economic success will be different from those that prevailed in the past. However, the basic economic objectives remain the same — the achievement of enhanced living standards and the opportunity to participate fully in the economic life of our country. The effects on economic change are already spilling over into our daily lives, whether it is in relation to smart cards and ATM machines or telecommuting, where people can now work from the comfort of their homes. As Mark Twain would have said: "the fiction is fast being driven out of science fiction".
This debate affords me the opportunity to address some of the issues relevant to the role of science, technology and innovation in the continuing development of Ireland's national economy. Whereas in the past there was criticism that the importance of science, technology and innovation to Ireland's future development was not fully appreciated at the highest levels of policy making, we can now say with confidence that the scales are clearly shifting. This change is being driven by a number of factors from the awareness which the White Papers on science, technology and innovation and on education created, to the huge rise in the level of research and development being carried out by Irish companies over the past seven years, to our success in attracting inward investment in the electronics and software areas, with the skill demands which that unleashes, through to the fact that this Government is prepared to acknowledge all these trends and to act accordingly.
The Government's response is a comprehensive one focusing on particular challenges or targeting other areas for broader treatment. This is all in the context of a confident business environment, which is good for sustained economic progress and for the social partners, employers, workers and farmers.
Specifically, we have seen the first ever science week, the launch of the £250 million science and technology capital investment fund, the relaunch of the Measure 1 in-company research and development scheme, the launch of a number of technology centres in Regional Technical Colleges, the launch of the Institute of Technology Management at the National University of Ireland in Dublin and the upcoming arrangements for the reorganisation of the programmes in advanced technology. Only two weeks ago we had an Israeli delegation here in Dublin for discussions on a bilateral research and development understanding to promote co-operative projects in market driven areas, which will lead to solid commercial results. As the Israelis made clear, they are not interested in agreements for the sake of agreements, but for the results that will flow from their successful working.
The science week may seem trivial in the context of the other science and technology developments of the past few months. Yet, in its own way, it is contributing to getting the broad message across to the widest possible audience — school children, parents, teachers, the public, civil and public servants, researchers, industrialists and politicians. It was heartening to see the overflow queues at the special fun day events, not to mention the other range of specialist events that filled the calendar for that week. Next year we hope to go one better and all sides have a part to play in this. I hope that universities and industrial representative associations will consciously schedule events to coincide with next year's science week.
The major development of this past year was the Government's announcement of the £250 million science and technology capital investment fund. There were a number of drivers in this process from the information society report, to the STIAC report and the development skills shortages in certain key inward investment areas. The skills shortage in certain areas, which is a reflection of our success in attracting inward investment and promoting indigenous company development, is a major driver in focusing all our attentions. This demonstrates the huge interdependence and interplay between science, technology and innovation, or between the creation of knowledge and the fruitful application and exploitation of knowledge.
One of the first acts of this Government was to make a £5 million capital investment for the creation of additional places this autumn in software courses at degree and technician level. We recognised that a more substantive response was necessary and that a comprehensive and co-ordinated plan was required to meet the full range of emerging skill needs. These needs are clear in certain areas and less clear in others. We need better arrangements to anticipate and respond to emerging demands and skills shortages at technician, graduate and higher levels.
As our economy continues to grow and strengthen and unemployment levels continue to fall, there will be a propensity for skills shortages to develop in any sector and all concerned must plan for this. It is not just a high-tech phenomenon; shortages can manifest themselves anywhere. We see them in the leisure and tourism sector already. There must be a partnership approach in addressing these. The best foundation is a good solid basic education for all with a curriculum which is geared to the needs of a modern economy and which provides a basis for all school leavers to diversify into areas for which they are best suited. The Government must also help with the retraining of workers and with particular emphasis on the unemployed who want to improve their skills. Life-long learning is not just for the out of work.
The Government must also help with the retraining of workers, with particular emphasis on the unemployed who want to improve their skills. Life long learning is not just for the out of work, it must become a way of life for everyone. The pace of technology advance requires that all of us, whether doctors, teachers, car mechanics, civil or public servants or politicians must continue to invest in personnel and personal development. Employers have a huge role to play in ensuring we have a world class technology literate workforce.
As the pace of technology steps up, so will the pace of change. Consequently, the orderly ways of supply and demand in the workplace will change and, therefore, we will have to be flexible and alert in anticipating and detecting change in demand for skills in the future whether for graduates or technicians.
Will the output in future years be determined by 17 year olds filling in their CAO forms in expectation of what they would like to do or by public policy makers who, looking to the implications for the public purse, fail to make adequate distinctions between the cost of one course over another or fail to make adequate provision for the types of skills outputs from our third level system, or will these matters be weighted to take account of changing production methods in industry or foresight studies of emerging technologies, which will be the key to our future industrial competitiveness?
We must take account of these factors and others in trying to get the best fix between supply and demand in meeting the needs of a buoyant economy over the next decades. There are many who will have important contributions to make and many important factors in this equation. All must be able to make an input and must be involved. It is wrong to think that shortages will appear in entirely predictable areas. Already we see shortages in critical software areas, but where are the next shortages developing? There are signs of an impending "tightness" arising in various areas of hardware and it makes little sense to move resources around to address a shortage in one area only by contributing to one in another. A comprehensive approach is called for.
While the new £250 million fund represents a dramatic initiative to address present and future needs, it is important to stress that the fund does not represent a roll up of existing activities, but it will be additional to annual capital allocations and will not replace ongoing investments. We must manage the interface with existing schemes in this area.
The Bill concerns this Government's strategy for ensuring the education system is capable of meeting these challenges. It provides the formal legal basis for the establishment of the scientific and technological education investment fund announced last month. This dedicated fund, which will comprise £250 million over three years, represents a comprehensive, multifaceted approach to the various problems which need to be tackled in the education system. It makes available the necessary capital resources to deal with issues such as overcrowding in third level institutions, the emergence of skills shortages, upgrading of equipment and research and development and increased availability of computers in schools. The Bill has already been considered carefully in the Seanad, where it was warmly received by all sides, and I am pleased to have this opportunity to present it to the Dáil.
I now turn to the main provisions of the Bill. I have specifically referred in its Title to the scientific and technological aspects of education. This serves to emphasise that the new fund will be specifically directed at areas which are critical to economic growth and employment creation. The fund does not purport to concern all aspects of education but is designed to deal with specific issues in the areas of science and technology and a more generic title would involve a loss of focus.
It is also important to stress that this is an investment fund — the funding allocations to be made will represent more than a form of social spending. They will facilitate the modernisation of the education system, prepare it for the challenges posed by technological change and safeguard future economic growth. In this sense, the fund clearly represents an investment in our future.
Section 2 establishes the new fund and sets out two accounts through which it will be operated, an account with the Office of the Paymaster General and a private donations investment account. Private sector business and industry is set to benefit greatly from the existence of the fund. Not alone will it assist in terms of continued supply of skilled labour, it will also concern the upgrading of research and development in educational institutions. As I remarked earlier, research is increasingly being recognised as crucial to economic viability and the support provided in the fund for such activities will ensure industry can continue to develop and enhance products and production methods.
As beneficiaries, industry and the private sector have a responsibility to contribute to the development costs. Over the years, this obligation has not been shirked and I wish to put on record our appreciation of the generosity of private sector donors, particularly in respect of contributions towards the cost of third level buildings. Most of the developments, supported by my Department in the university sector, now involve a substantial private sector input and without such contributions the development of the third level system would be hampered significantly.
This aspect of the fund dovetails with the terms of sections 16 and 25 of the Finance Act, 1997. Section 16 provides for relief on private or corporate donations to certain third level institutions for the purposes of research, acquisition of equipment, infrastructural development and facilities in areas concerning skills shortages, all of which the fund is designed to support. Section 25 provides for tax relief in certain defined circumstances for investment in the provision of new accommodation in third level institutions.
The designation of a separate account for private donors' contributions will reassure contributors that their investments are separate from, and additional to, the State's investment. Furthermore, the Bill provides in section 7 a mechanism for private sector donors who may wish to do so to specify how their contributions to the fund should be spent. Although section 2 states that the Minister for Finance will manage the fund, it is intended that these responsibilities will be delegated by him to the National Treasury Management Agency and the Bill provides for this. The NTMA will ensure funds which have been allocated from the private sector but not yet spent will be invested and that the interest accruing on such investments will be added to the funds available.
At the official launch of the fund on 6 November, the Government gave a commitment that £100 million would be made available in 1998 while the balance of £150 million will be allocated to the fund over the following two years. The revised text of section 3, which will enshrine this commitment into law, incorporates an amendment raised in the Seanad which should remove any lingering doubts concerning the strength of the Government's commitment on this issue.
Section 4 sets out the purposes for which payments may be made from the fund. These are defined as capital expenditure in connection with education and training programmes in areas of skills shortages, scientific or technological research and development including the use of the results of such research for commercial purposes, computers and information technology in schools and other education and training programmes considered appropriate.
The education and training programmes, under the terms of section 4 must be scientific, technological or vocational in orientation. The terminology of the section is necessarily rather broad and is designed to encompass a number of specific objectives which were announced at the launch. It would be helpful to review these objectives in some detail.
First, approximately £60 million will be set aside to combat emerging skills shortages. Much of our economic growth in recent years has been achieved by virtue of the availability of a highly skilled and adaptable labour force. In particular, this fact has enabled us to attract substantial investment from multinational companies and Ireland is now home to many leading hi-tech industry names. However, recent indications have suggested that, to some extent, we risk becoming the victims of our phenomenal success. The threat of potential skills shortages in certain areas has been well documented and the allocation of £60 million will facilitate the necessary provision of additional student places in courses relevant to industry's needs.
Second, similar problems have emerged in the hotel and tourism industry. This sector's importance to the economy has grown substantially in recent years. However, it has not been possible to cope with the rapidly increasing demand for skilled workers, mainly because the principal source of labour, regional technical colleges, were established at a time when tourism played a minor role in the economy. The allocation of £20 million for capital developments in the colleges represents a major boost to an area which in the past received only modest levels of investment.
Earlier, I referred to the importance of promoting inclusiveness in education. Sometimes when the spotlight falls on traditional high profile areas, such as higher education, other sectors may be forgotten. The further education sector, notwithstanding its importance in education into industry, may tend to suffer in this regard. Similarly, the established system of training for apprentices may be neglected despite its well deserved reputation for excellence internationally. A sum of £20 million will be allocated to these headings. This will be used to support the provision of additional apprentice places, many in trades where the boom in the construction industry has resulted in skilled labour shortages.
Ba mhaith liom comhoibriú leis na Teach. Dá bhrí sin, molaim an Bille don Teach.
