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Dáil Éireann debate -
Wednesday, 11 Jun 2003

Vol. 568 No. 2

Industrial Development (Science Foundation Ireland) Bill 2002 [ Seanad ] : Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

The dramatic expansion development and transformation of ICT continues to depend on wide-ranging research in several areas, such as science, software systems and technology. Nevertheless, current and ongoing research will constantly strive to further push out the frontiers of knowledge in pursuit of ICT of the future. Accordingly, it is entirely appropriate that Science Foundation Ireland should seek and fund imaginative proposals for ICT related research in areas such as software applications, components and devices and network development. This would include areas like high speed broadband, next generation mobile transmission and wireless voice data and video transmission.

In a recent speech, Dr. William Harris, Director General of Science Foundation Ireland quoted the US Science Foundation as a model for the new foundation and for future potential of research in Ireland.

The National Science Foundation was largely instrumental in developing the speciality of computer science, inspiring a generation of idealistic thinkers to pursue basic research into this relatively new area.

Computer infrastructures were provided at almost all US universities throughout the country, enabling development of endowed faculties which are contributing to America's well of talent and discovery in this area. Science Foundation Ireland can make a similar contribution to research programmes in Ireland and our brightest and best students can be enticed to pursue and explore research opportunities at home.

Dr. Harris' vision of a thriving ecosystem of research excellence in Ireland is imminently attainable. The future generations of students who are inspired to pursue research possibilities in science and engineering will form the nucleus of Ireland's future advances in these disciplines.

In the past, Ireland's commitment to science and technology has lagged behind that of other countries, though the base from which these sectors increased was lower. A 2001 Forfás report stated that Ireland's rate of investment was five times below New Zealand's and half that of Sweden. In a worrying trend, the numbers of leaving certificate students taking physics and chemistry continues to decline. Solutions are required from Government, industry and educators to persuade students to pursue careers in science. Radical reform of science and technology education is urgently required and the negative perception of careers in these areas must be addressed by industry. Current scientific discovery continues to excite and it is not beyond the ingenuity of educators to make physical science subjects cool despite the fact that they are regarded as boring and difficult. Hopefully, this generation can be developed as science and technology trend setters and leaders.

It is urgent that we attain leadership in this field to help our brightest and best to specialise in an area which has so much potential to benefit the country. The inclusion of science in the curriculum should be emphasised at primary and second levels while encouraging science-related projects during transition year.

I note with satisfaction that science has been given greater emphasis in the new primary school curriculum. This can only benefit science generally. However, the condition of many schools is cause for concern as they have become seriously dilapidated and breach health and safety regulations. Developing science and technology centres of excellence is all very well, but it should be remembered that these grandiose concepts emanate from primary school classrooms. Many of these are housed in inadequate buildings which leave much to be desired where the safe storage of equipment is concerned. I note that the Department of Education and Science has undergone a type of Pauline conversion in responding to pressure by adding a total of 110 minor repair works to its increasingly unreliable list. This is akin to patching up major cracks with tissue paper.

It is vital that this exciting new departure in science is adequately resourced and fully supported by the Government well into the future. We are not too far removed from an era in which science teachers were compelled to improvise by using ink wells containing methylated spirits and wicks in place of Bunsen burners as a result of the failure of previous Governments to properly resource science teaching. If sufficient funds are not forthcoming, the entire project will be undermined and stillborn. If it is to be subject to the moderation in the rates of increase of which we have seen numerous examples in the current year, I shudder to think of its viability.

Science has been described as the design or conduct of reproducible experiments to test how nature works or as the creation of theories which can themselves be tested by such experiments. Science is the one human activity which seeks knowledge in an organised manner. It is not the knowledge which is organised, it is the search for it. Science does not guess, nor does it hope, wish, trust or believe; science seeks. It is the search which makes science so exciting. Seeking is a uniquely humble human experience. Science does not say "I know", it says "I need to find out". What other human enterprise has its non-judgmental, non-directive attributes and its quiet dignity? The best of this enterprise is found in research which is a basic search for truth.

I trust that this Bill will enhance the respect society has for science and the scientific bent of mind and its willingness to support these, particularly at the level of scientific research. I welcome this Bill.

I noted earlier in the debate that Deputy Finian McGrath took issue with the name of the body to be established through this legislation. It is a pity that an organisation called Science Foundation Ireland is to ignore the Six Counties. There does not appear to be any sign of an all-Ireland dimension to the organisation. Perhaps the Minister will indicate if such a dimension is proposed when she responds.

While I welcome the legislation broadly, the comments of one of the organisations which might have been expected to welcome most the investment in scientific research Science Foundation Ireland represents should be noted. The Irish Research Scientists Association welcomes, as I do, the investment the Government is making in science, but it has expressed difficulties with the mechanisms and priorities of the funding. The bulk of scientific investment will be made in universities through Science Foundation Ireland and the programme for investment in third level institutions which is run by the Higher Education Authority. The amount of money available for capital investment for the latter funding programme is a casualty of the Government's cutbacks and many projects and schemes in the research sector have been left in a kind of limbo. Perhaps in her reply, the Minister will assess what she believes the implications may be for Science Foundation Ireland and science in general if that funding remains discontinued. Many of the projects to be funded by Science Foundation Ireland and through the programme for investment tend to be large with a great number of staff employed. There does not seem to be a reasonable amount of money set aside for smaller projects. The IRSA has repeatedly made the point that there is a case for greater diversification of funding to permit investment in scientific research projects run by small groups or individuals. Is the Minister putting too many eggs in one basket?

What are the implications for Science Foundation Ireland once the national development plan has come to full fruition? The Government is to be commended for its investment in research, even if we are starting from a low base in historical terms. Our current spending on research is 1.2% of GDP which is one of the lowest rates in the EU. Does the Minister believe the EU target of 3% of GDP is feasible for this State given the Government's current spending difficulties? Science Foundation Ireland is to focus on bio-technology and information and communications technology and not on other areas of science. The Minister stated in her speech that those areas were identified as representing the main future engines of growth in the global economy. While I accept that there is a good deal of merit in the point she makes, I ask what she believes would be the implications for the foundation and this State of heavy investment in those areas if the analysis were to change. Could we not invest in research into wind energy? Why is there an emphasis on purely economic benefits rather than on the greater benefits which might accrue to society and scientific research through investment in social or environmental research?

There seem to be few safeguards in the legislation regarding the research institutes which are to receive money. How can we be sure that all of them have the social and environmental interests of the people at heart? The Department of Enterprise, Trade and Employment is responsible for issuing military and dual-use export licences, 59 of which were issued in 2001 alone. Many companies produce dual-use technology which they sell to arms manufacturers and some produce military goods which have no use other than as part of weapons systems. A proportion of these goods have ended up in countries with terrible human rights records including Turkey, Malaysia and Colombia, a country with which I have become familiar through my trips there. AFrI has regrettably pointed to a growing link between arms companies and Irish research institutes. Are these the same kind of research institutes Science Foundation Ireland is expected to bankroll?

Irish companies such as CHEMFAB Europe, Befab Safeland in Clare, Data Device Corporation and Moog in Cork provide information and communications technologies to militaries across the world. What assurances do we have that Science Foundation Ireland will not fund research projects connected to these companies?

That is a bit rich.

Will the Minister assure the House that this Government will not provide financial support to the Irish arms trade? I ask the Minister in her response to assure the House that none of the money provided to Science Foundation Ireland will be used to support scientific research connected to the Irish arms industry and the production of military goods or dual-use technology.

I also wish to take the opportunity offered by this rare debate on science to mention other areas of concern. Investment in third level scientific research is to be welcomed but there must be a serious attempt to tackle the problems facing the teaching of science in secondary schools. Figures suggest that students are not attracted to careers in scientific research. In 1990, 16% of leaving certificate students took chemistry but in 2002 this had fallen to 12%. Physics is another example. In 1990, 20% of students were enrolled in physics classes but this had dropped to 15.6% by 2002. Another worrying development is the number of leaving certificate students ranking computing engineering courses as their first choice in CAO applications. This has fallen by 18% since 2001. This must be a concern to anybody with an interest in science.

Ireland is one of the few countries in the world that does not have a practical component in science subjects. I welcome the new junior certificate science syllabus which will feature 12 practical experiments each year. The new syllabus is ambitious when one considers that many of the schools expected to start teaching the new syllabus in September do not have science laboratories, as noted by Deputy Gregory. Teacher unions have also stated that in 40% of secondary school laboratories conditions are primitive and unsafe. Yesterday the Minister for Education and Science said he believed this problem had been overcome but in reply to a parliamentary question I put to him earlier this year, he told me that neither he nor his Department knew how many secondary schools had science laboratories. There is an urgent need for investment in science education at second level.

Deputy Gregory mentioned disadvantaged schools, in which there is a huge obligation on us to invest. We also need to know where the investment mentioned in the Bill will go. I welcome the introduction of the Bill but a number of issues must be tackled.

I wish to share my time with Deputy Fitzpatrick.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

I welcome the opportunity to speak in favour of this Bill which establishes Science Foundation Ireland on a statutory basis. The main purpose of this body is to promote and develop world class research capabilities in certain areas of scientific endeavour which are particularly concerned with economic and social benefit and long-term competitiveness. Examples include information and communications technologies and biotechnology.

This development is most worthwhile. Ireland today has a highly trained workforce. This is, in no small measure, a result of the developments that have occurred in third level education during the past 30 years. The number of students attending third level has increased dramatically since 1970. The growth in numbers has been achieved by the great success of the institutes of technology, formerly known as the regional technical colleges. Not only have they opened the area of third level education to a large section of the population who did not previously have the opportunity to go to university, but by offering the ladder system they have also enabled students to start at certificate level and proceed to diploma and eventually degree status.

In addition, the range and diversity of courses in institutes of technology are such that they are firmly focused on practical career opportunities. These courses are mainly developed in close conjunction with local industry. With the resultant growth in degree courses and the increasing number of students attaining this level it is only natural that some of these students should wish to proceed to further study, either at masters or Ph.D level. This country is now reaching the stage where it has an emerging pool of people capable of research at the highest level. The universities have been producing research students for many years but the great success of the IT sector has stimulated the universities to look at and alter their postgraduate programmes with the result that they have now become more practical in focus.

The era of low paid unskilled jobs is now almost gone. Our citizens are well educated and demand more stimulating work situations. There is a highly trained workforce and it is imperative that research and development are encouraged across the board. Over the past 20 years a sea change has occurred in the work opportunities available to Irish people. The era of low paid work is passing as we have witnessed with the loss of many jobs in low skilled, low paid sectors of employment. Certain manufacturing industries, for example, textiles, have closed down and moved their operations to the Far and Near East where wages are low. This is due to the rapid changes that have occurred in the economy as it has moved from a Third World to a First World economy. Our population is more educated and demands better paid and more rewarding job opportunities. The third level colleges, both universities and institutes of technology, have responded and are now producing graduates who can compete at research level with the best in the world.

Last Monday the Minister for Education and Science announced the provision of a B.Sc in archaeology at Sligo Institute of Technology. This course is the first of its kind in Ireland and will produce highly trained archaeologists who will have a high component of practical expertise. As the State continues its massive infrastructural programme in road building and so forth, the need for practical archaeologists, trained to the highest level, is self-evident. This B.Sc course is a recognition by the Minister of what the institute of technology can do. I commend both the staff at Sligo Institute of Technology for devising the course and the Minister for giving permission to the institute to proceed with the degree course.

Science Foundation Ireland is to be put on a statutory basis and charged with investing in the scientific and engineering fields underpinning biotechnology and information and communications technology. It is predicted that the market for biotechnology industries alone will rise to €250 billion by 2005 and support three million jobs in Europe. The foundation has already committed approximately €152 million in research projects and shown that the Government is committed to building an ecosystem of world class reseach.

I urge the Minister to ensure there is an equitable distribution of research throughout the relevant third level colleges. The institutes of technology are ideally poised to develop their already strong links with local industry and the research they are conducting is biased heavily in favour of practical results. Ireland is home to nine of the ten largest pharmaceutical companies in the world. In Sligo, Abbott Laboratories is already the largest employer and has developed close links with Sligo Institute of Technology. Its new pharmaceutical factory, due to open shortly, is closely involved with the science department of the institute in devising courses for its employees. This synergy is beneficial to all concerned. With the help and guidance of Science Foundation Ireland this must lead to the development of more detailed and penetrating research. The development of new products and jobs is the ultimate aim.

I wish to suggest a new way of encouraging the development of research capabilities. I represent Sligo-Leitrim, which is part of the BMW region. I am a member of the BMW regional assembly. It is the stated aim of the Government, as expressed through the national development plan, to encourage new industry to the area. The recruitment and retention of highly qualified research staff in any area, be it at postgraduate level or up to Ph.D level or above, are dependent on many factors. The quality of the research and the interest of the researcher in the topic are obviously high on the agenda. To encourage and foster research and development in the west, specific tax incentives should be given to companies which engage in it. In particular, tax breaks should be given to individual researchers located in the BMW area. In this way, the synergy of universities and institutes of technology, the well educated workforce and the companies which engage in research can be utilised to promote the growth the Bill aspires to create. I commend this exciting legislation to the House.

I welcome this Bill. I begin with two quotes. The first is from a letter I received from a head teacher of a school in my constituency. He states:

In addition to catering for the children of the community, the school also caters for transient children from the nearby hostels and children from Travelling communities. Over 70% of our children come from single-parent families and unemployment among parents is a serious problem. The results of the most recent standardised tests carried out in the school are stark. Some 33% of pupils tested in mathematics scored below the tenth percentile, which indicates that they are in need of urgent attention. The situation with regard to English is only marginally better, with 31% of the pupils scoring below the tenth percentile.

This letter was written by the head teacher to urge the Minister for Education and Science to enable him to retain his full complement of staff. He did not want to lose any of them. I now quote from the contribution of Dr. Harris who states:

Ireland's sustained economic growth and prosperity will depend on establishing a culture of scientific and technological innovation, a high level of research and development and a globally competitive knowledge-based economy. Such re-positioning is essential to provide sustainable, high quality, well paid jobs in the future.

One might think that these two quotations have no connection at all. However, they are intimately connected. Unless we put the money and the support structures into the primary schools, we will create a marginalised community and prevent bright people from getting a chance to proceed to third level education.

This Bill is based upon the premise that a constant stream of well educated graduates will be produced by the education system. The education system begins for people at three or four years of age and goes right through the life span. Education is a life-long business now. The days when one could close one's books and forget about them after leaving university are long over.

As Deputy Devins said, the Bill must also be seen in the context of the changing manufacturing environment in which we live. Low-tech, high volume manufacturing has almost disappeared from the western world, the clothing industry being a major case in point. Most clothing of the average, middle range is now manufactured in the Far East, the Middle East, India and South America. Very little clothing is now manufactured in Europe, and apart from individual clothing items, the clothing manufacturing industry in Ireland has literally disappeared.

I welcome this Bill which is badly needed and long overdue. We need to pump money into scientific research because our future viability and financial well being as a country depends upon knowledge-based and science-based industries. We must continue to invest and re-invest in them as time goes on.

Deputy Crowe made the point that the Bill is possibly lacking in an all-Ireland dimension or total Irish context. The Minister may be speaking to representatives of Science Foundation Ireland, so I suggest to him that the body could adopt as its logo the phrase "bradán feasa"– the salmon of knowledge. If I remember rightly, this is one of the oldest and earliest acknowledgements of the concept of knowledge, if not science-based knowledge, in Ireland. I welcome the Bill and wish it every success.

I welcome the establishment of Science Foundation Ireland which provides a great basis for establishing this country as a world class research centre. It will strengthen our international reputation as a country that provides quality and highly skilled workers. It will make Ireland a centre for research and excellence, which will attract high quality investment and open opportunities for Irish countries in the ICT and biotechnology sectors.

The Bill is clearly very well focused. The benefits will bring success not only in Ireland but abroad. The Tánaiste and Minister for Enterprise, Trade and Employment has stated that Ireland's increased efforts in research in these areas is one of the Government's responses to making our country more competitive on a global scale. She said that we can no longer compete on a low cost basis with cheap economies around the world and must compete on skills and innovation. I welcome this initiative by the Government but I must highlight the fact that certain Government actions and policies have undermined and threatened our competitiveness.

Our inflation rate is twice the EU average. Government-sanctioned price increases in essential services such as health, education, energy and telecommunications are hindering our economy. Insurance costs are spiralling out of control and there is a slowdown in infrastructural development, which is one of the most important factors in creating a competitive environment. Inflation is twice the EU average, and 85% of that increase is attributable to Government-operated services. That is very worrying.

It is ironic that the Tánaiste speaks about improving our competitiveness while she and her Government colleagues have made decisions that can threaten this. The fact that the Bill's provisions are very much up and running and the funding earmarked would clearly indicate that, in many ways, it was a very good Bill in the Celtic tiger era. It is very important that we do not lose our competitive edge. Regardless of what science, technology or innovation we have and irrespective of the abilities or skills of the workforce, if we are not competitive people will not come to this country.

Science Foundation Ireland will provide a basis for the development of new enterprises and provide new opportunities at home and abroad for Irish companies involved in the research and development sector. We must look at this from a broader perspective and introduce policies to encourage the developments on which the success of Science Foundation Ireland will depend, such as entrepreneurship, which is very important. Support for people setting up their own businesses, investment in research and development, education and infrastructure are all areas we should look at. Research and development and the creation of new products is an area that the Government, through the institutes of technology, very much needs to expand. We must also encourage small enterprises to engage in research and development and promote that whole area because companies cannot afford the amount of investment needed to expand in this area.

We must have systems in place to support new development enterprises as they emerge. The economy has slowed down and the role of enterprise within the economy is very much threatened by the high rate of inflation and by the whole bureaucratic nature of the State. People setting up businesses find this aspect very difficult to deal with and ask themselves why they should bother. Business must be conducted more simply. The backbone of this economy was built by small companies, the hub of this economy, which employed a small number of staff and received no benefit whatsoever from the State.

Bureaucratic barriers that slow down the pace of business must be removed and entrepreneurs must be encouraged to proceed with innovative ideas and must be rewarded for taking risks. Risk takers in this country are not looking for recognition, but what they do not need is the huge level of bureaucratic red tape. The system should be simplified.

The closure of the big companies is evidence of the importance of small companies. The Minister of State is aware that small companies are sustainable in every constituency, town and village. By and large, they work the 40 hour weekend, not the 40 hour week. Often they pay their staff first and, invariably, the employers are the last to be paid. We should never lose sight of their initiative or their level of commitment.

The Minister of State agrees with me on the need for continued investment in research and development, especially for small companies, in view of the potential for future development in Europe following the accession to the European Union of the applicant states. There is a need to build on the recognition of Irish products abroad through greater marketing, especially in the food sector where there are huge opportunities. There is much talk of the cutbacks in agriculture and the decline of farming, but there is huge potential for the development of agri-business products, which are currently under sold. We should promote the greenness of Ireland and the excellent beef, which is exported in cardboard boxes without branding to indicate it is from this country. The traceability of the merchandising and sale of beef should also be promoted.

Failure to act in these areas will mean that Ireland will be unable to exploit the benefits of the research capabilities it aims to develop over the next few years. I commend the Government for its heavy investment in the Institute of Technology in Sligo. It has 4,000 students under its director, Dr. Richard Thorn, and is one of the finest colleges in the country with a wide range of facilities. It has immense capabilities. It is important that when graduates leave such colleges they are given the back-up and encouragement with their careers.

A recent Forfás report on the biotechnology and IT sectors indicates that for the period 1991-2000, Ireland has performed at or slightly above the world average. It shows that while there is a good base on which to build strong research capabilities, there is still work to be done in creating robust and sustainable research centres that are capable of competing with the best in the world.

Ireland is part of a huge competitive marketplace. As the only English speaking country in the eurozone, it should exploit the extended European market while retaining its links with the American market. Our education system has produced some fantastic students, but it is important to ensure there is no massive exodus of the kind that occurred among the graduates of the 1980s and 1990s. We must ensure that people do not leave because of our inability to create an enterprise culture that would allow them to stay and create wealth in the regions. In this regard, it is regrettable that very few of the graduates of the Institute of Technology, Sligo, get jobs in the county or the north-west. They must travel to the east or the south. The match of innovation and technology in Sligo is among the best in the country and, given the talk of the growth of the regions, it should not be seen as necessary for graduates to leave the region to get employment.

We must ensure that Ireland can continue to provide highly qualified and skilled people. It is critical that students be encouraged to go into the area of research and development. The country has a great reputation in the area of science, but more must be done to encourage students to pursue their studies in the sciences. I am pleased to note Dr. Richard Thorn's disclosure that the science faculty of the Institute of Technology, Sligo, contains 600 students.

Science subjects must not only be properly marketed to school leavers, but access to third level education must be improved to ensure that there are no barriers to entry to those wishing to take up science at third level. In addition, there must be improvements in grants to those who wish to continue to study in research and development after their primary degrees. I am pleased my party's spokesperson on education is present. She agrees on the need to develop the concept of continuing education and life long learning. This is especially important in view of the links between education and enterprise and science and technology. It is critically important for the enterprise culture that companies be encouraged in terms of their research facilities and that innovation and facilities that promote life long learning be promoted.

The importance to competitiveness of investment in infrastructure cannot be over-emphasised. The slow down in the roads programme and the lack of a broadband infrastructure is worrying. These must be addressed in the broader context of the need to encourage research and development in the country. Broadband must be rolled out at a quicker pace and urgent steps must be taken to hasten the implementation of the road building programme, even if it means Government borrowing. It makes no sense for the State institutions such as the National Treasury Management Agency and the pension reserve fund board to be investing in global stock exchanges when they do not invest in the massive infrastructure deficit. A report last week indicated that €760 million was lost from investments in global stock markets by the pension reserve fund board. That money would be of great help in funding the construction of improvements on the N4 to Sligo, the Sligo relief road or the western link road.

The pension reserve fund board is very ambitious in that regard. It is concerned with a 20 year cycle and it may be a matter of "live horse and you will get grass". It worries me, especially at a time when money should be invested in the economy and the infrastructure. The loss of €760 million is not far from a loss of €1 billion.

Does the Deputy agree with the tolling of roads?

I have no objection to tolling, but the return on investment by the pension reserve fund board must be re-examined. People pay enough tax. They pay it from the time they get up in the morning until they go to bed at night and when they leave this world and go to the Almighty.

They pay much less tax than they did five years ago.

I am in that profession and I know people pay tax from birth to death. In view of this, I would be reluctant to endorse the tolling of roads.

Further developments in enterprise, education and the infrastructure, alongside the work of Science Foundation Ireland will help to improve competitiveness in the ICT and biotechnology sectors. I congratulate the Minister on the Science Foundation Ireland concept. The board of directors consists of exemplary people who know their job. Regrettably, the economy is not as buoyant as it was, but I have no doubt we will get value for money from this body. However, it is critically important that the State ensures the best due diligence in monitoring the way the money is spent to ensure a return on any investment.

Further developments at international level are important, especially in terms of seeking new markets for innovation, research and development. Innovation must be targeted and encouraged. We must look for new businesses on a global scale and be well placed to attract foreign investment. This is achievable with the establishment of Science Foundation Ireland and, with the excellent work of IDA Ireland and Enterprise Ireland, we can succeed.

I congratulate the Minister of State on his appointment. He holds a good portfolio, especially in the area of research and development. I have no doubt he will do a good job. Enterprise Ireland and the enterprise boards, with which the Minister of State deals, have an important role. This applies to the enterprise culture and boards in every county, particularly in Sligo, where the board is doing a good job but is restricted on funding. It is important to make a link between this foundation and the enterprise boards in each county because the boards deal with the small companies, of up to ten people, and I hope that the research facility will deal with every facet of industry, from the smallest set-up to the largest. Whereas Enterprise Ireland deals with the home market and the IDA deals with the external market, in the areas for which I feel responsible and the people who have sweated to achieve what they have, the companies are small. I believe in the saying that the oak grows from the acorn but we must make sure that the acorn is planted in fertile soil and given the opportunity to grow, and this foundation will help that process.

I congratulate Forfás on the work it has done to get this project off the ground. Its publications are excellent, for example, this week I received an excellent research document on inflation and I congratulate the author of that document which is unbiased and prepared to the highest possible standards. It is a good base document for many issues that are now threatening the economy, and on a related issue, I hope the Minister of State will support the retention of the groceries order when we deal with it.

Science Foundation Ireland is a direct result of the proposals put forward by Forfás in 1998 with a view to improving the opportunities that Ireland could offer on the development of ICT and the biotechnology sectors. Its work on this vital area will stand to it in the years to come. Forfás has done a fine job. I have the highest admiration for Enterprise Ireland, and the enterprise boards, which are critically important. As someone who listens attentively to employers I am worried by the high level of costs and the valueless currency in which we now deal. Unfortunately it is hard to quantify the loss of value in the transition from punt to euro, when one thinks how valueless €50 is compared to IR£20, wherever one goes.

The Forfás document raises the issue of value for money in the public service. The taxpayer must get value for money. As the Chairman of the Oireachtas Public Accounts Committee, I am aware of how efficient the Accounting Officers are at their job but dedicating funds in a particular area is good business because at least that money is ring-fenced. Experts are commissioned and that is commendable because the responsibility rests entirely with the foundation to expand science and biotechnological possibilities. With that type of niche focusing on funding at least there is a sense of responsibility which the Minister of State can clearly understand, and the foundation is accountable to him. The Minister of State will find it easy to benchmark the effectiveness of this foundation.

The economic success of the 1990s was due to the vision of the previous Governments in their investment in education, and the partnership of education with the enterprise culture, coupled with the commitment of talented young people. We have moved to a different time and a global economy where the buzz word is the computer business. Any high-tech company can move its operation on a 40 ft. lorry. It is completely different to the heavy structural businesses which had huge plant. A high-tech industry can put its plant on a 40 ft. lorry and move to a cheaper destination. It is important that we have a competitive economy, with salaries that will give people a sustainable income making it possible for them to stay in the country.

Development in education has been a great base for this and we have very good second and third-level education. I commend this Bill and congratulate everyone involved in it but we need to be careful of our competitiveness as an economy.

The Bill before the House is designed to make further provision for the development of industry, trade and enterprise and for that purpose to establish a body to be known as Science Foundation Ireland. This body will operate under the aegis of Forfás and its objective will be to ensure that Ireland will be to the fore in the knowledge-based economy. The knowledge society which has emerged due to modern information and communications technology is bringing about a fundamental reshaping of the global economy. We are looking at a transformation of our economy and society. It is estimated that between 70% and 80% of economic growth is now said to be due to new and better knowledge.

Innovation is quickly becoming a key factor in global competitiveness, where coming up with new or different ideas about how to do things better or faster will be central to our efforts to become a world leader in the new economy. Building the Knowledge Society, a report issued by the Information Commission to Government in December 2001, states that continuous market driven innovation is the key to competitiveness and thus to economic growth. It further points out that this requires not only a strong science and technology base, but equally important are the capacities to link fundamental and applied research, to convert the results of that research to new products, services or processes, and to bring these innovations quickly to the market.

The establishment of Science Foundation Ireland is a mechanism to facilitate this happening. However, I have a number of serious concerns. First, our level of competitiveness has been deteriorating in recent times as confirmed in the Forfás annual competitiveness report for 2002. It points to increasing inflation, rise in wage levels and infrastructure bottlenecks as contributing to this slide in competitiveness.

The issue of infrastructure bottlenecks should sound many alarm bells. The Institute of Engineers has warned that the infrastructure element of the national development plan is behind schedule. The national development plan was put in place for 2000-06 but many of the major infrastructural projects will not be completed until 2010 and perhaps some of them not until as late as 2013. This has major implications nationally but for those of us in some of the regions, particularly in the west of Ireland, this is bad news. The reason for this is that many of the major infrastructural projects were not included in the national development plan in the first place.

The N4 to Sligo and the N5 to Mayo are not part of the priority programme for the National Roads Authority whose recent annual report talks about being charged with the development of five major interurban routes, from Dublin to Belfast, Galway, Cork, Limerick and Waterford, and the building of the port tunnel. If we examine the Fitzpatrick report, which looked at the spend on national roads in the BMW region and in the south and east region to the end of 2002, we see that it confirmed that the road spend in the south and east was 45% ahead of target and in the BMW region 25% behind. The Minister, Deputy Brennan, has admitted that the situation has worsened during 2003, with spend in the south and east on national roads being more than 50% ahead of target, whereas in the BMW region it is more than 30% behind. How can our region be competitive? How can we in the BMW region benefit from the work of Science Foundation Ireland if our infrastructural deficit is such as to diminish our competitiveness almost completely?

The annual report published by the IDA only yesterday makes very grim reading for those of us in the regions. The chief executive, Sean Dorgan, expressed some concern that inward investors are once again focusing on city areas as their preferred locations and that that is making it difficult to pursue in full the priority of achieving the location of 50% of all green-field jobs – not including expansions – in the Objective One region. He says

We were well on track to achieve this target up to the end of last year but the persistent issues of infrastructure and scale are making it increasingly difficult for some regions to be sufficiently competitive to achieve this when there is capacity in the major cities because of the economic slowdown.

Remember what I said a few moments ago about the national development plan and projects running way over their deadlines. He said:

Achieving progress in infrastructure and services is essential over the next three years, as at the end of 2006 Ireland will have less discretion in giving regional grants under EU state aids policy and regions will then depend largely on the quality of such services locally to be attractive to investors. This means that regions that want to attract inward investment will have to do so on their own merits rather than depending on grants as the differentiator to draw in inward investment projects. That timeframe is very short, and we are not sure that regions realise the limited timeframe available to achieve necessary developments.

Many people in the regions recognise that limited time frame. When the national development plan was launched, many people in the west asked the Government to front-load spending in that region so that we might have some opportunity to make up for the gap that has continued to widen since the early 1990s. However, those pleadings fell on deaf ears. Mr. Dorgan has told us in the Border, midlands and west region that we have just over three years to achieve that progress in infrastructure and that otherwise we will lose our competitiveness. We also know that many of the infrastructural projects in that region were not included in the national development plan. Some of them were included, and the Minister, Deputy Dermot Ahern, was in Norway last week telling the Norwegians about our progress in balanced regional development. If that includes the building of the M1 to the Border through his constituency, good for him. That is fine, but it makes very little difference when one moves west and north of County Louth. As I said, many of the projects were not in the national development plan in the first place, but even in the case of those that were, the money is now being spent elsewhere rather than in the region.

Where does that leave us as far as our competitiveness is concerned? I am very happy to see the establishment of Science Foundation Ireland, but how will that huge investment of €634 million benefit the regions? Will the west of Ireland benefit from the employment created or get any of the jobs? Up to now, we have not been getting them. I will give an example which many people will think could not possibly be true. However, if one checks the figures, one will find that it is. Let us take my own county of Sligo. This Government has been in office since 1997. If we take the five years from 1997 to 2002 and look at net new jobs created in IDA and Enterprise Ireland backed companies, we find that in those five years from 1997 to 2002 there were 148 net extra jobs in County Sligo. Nationally, the figure was approximately 40,000. We have not been getting the jobs up to now, so what chance do we have of getting them in future?

Those figures are a disgrace, but particularly so for a Government which has made balanced regional development one of its core objectives. If I had a euro for every time that I have heard the phrase "balanced regional development" from Ministers and Government Deputies, I could be one of the millionaires in the Dáil of whom the Taoiseach spoke this morning. However, that will not happen, for all we have had regarding balanced regional development is talk.

Is it all doom and gloom? Can the establishment of this new agency, which I welcome, contribute in any meaningful way to the development of the regions? I will once again quote from Building the Knowledge Society, which says

It is evident that economic productivity in the 21st century will depend on enhanced application of information and knowledge to economic activity.

Now comes the most important sentence.

Broadband is the enabling infrastructure through which information and knowledge will be accessed, used and shared. Future economic development, including our sustained attractiveness to increasingly mobile foreign direct investment, is therefore critically dependent on it.

That document tells us that broadband is the enabling infrastructure. What are the chances that we in the west might get that type of infrastructure? I am not sure, but I know that in the Estimates there was a 27% cut in the roll-out of broadband to the regions. I ask the Minister to revisit and reconsider that decision. As I have pointed out, the west of Ireland has been denied what we might call the traditional infrastructure. I have spoken at length about the roads.

The recently published strategic rail review, while not Government policy, was also extremely disappointing. Essentially, I would call it "Pale rail", with most of the money being spent either in Dublin or in areas radiating out from it. No serious consideration is given in this strategy to redressing the balance and to looking seriously at a western rail corridor. When it comes to gas we are again looking at infrastructure we do not have. I know there are issues regarding Corrib Gas which have nothing to do with the Government but I remember Deputy Kenny making the point that whether the gas comes ashore at Corrib or not, the pipelines should be laid. One way or the other the west of Ireland must get gas infrastructure. Whether it comes from Corrib or not – I hope it does – we need both infrastructure in the west and the financial commitment from the Government which will provide it.

Though we have been denied much traditional infrastructure, there is an opportunity in the roll-out of broadband to catch up in the new knowledge society. If there is a will at Government and regional levels to promote balanced regional development, then it will actively pursue the roll-out of broadband to the region.

Forfás issued a report which reviews 2002 and provides an outlook statement for 2003. The report states:

The availability of broadband communications at a competitive cost is necessary for the development in Ireland of research-intensive new generation industries such as digital media and biotechnology. Key issues going forward include the timely implementation of phase 1 [referring to the roll-out of broadband to the regions] . . . these will be essential if Ireland is to achieve the objective, as set out in the Government's broadband strategy, of being placed in the top decile among OECD countries in terms of the availability and cost of broadband communication.

The report also refers to a critically important issue for peripheral regions:

Notwithstanding the launch of DSL by Eircom and Esat in May 2002, Ireland is still significantly behind leading countries in terms of the price competitiveness, coverage and take-up of broadband communications by business and domestic users. Given Ireland's objective of becoming a knowledge-based and innovation-driven economy, it is critical that Ireland becomes one of the leaders in this sphere.

We cannot rely on the free market to provide broadband technology to the regions. The Government must take the final responsibility, whether PSOs or other methods will be needed. We have been denied traditional infrastructure but when it comes to the knowledge-based economy of the 21st century, we still have a chance to get on an equal footing with the other regions and to play our part.

If the regions, and the west in particular, are to get any real benefit from the €634 million which will be spent by this foundation, then the necessary infrastructure, particularly broadband, must be put in place to stimulate economic development in the west.

I welcome the introduction of the Bill. It is a recognition that Ireland is beginning to see that investment in scientific research is vital if we are to keep our economy competitive. Knowledge-based industries and businesses using science and technology are key components in achieving long-term success in an increasingly globalised world.

Ireland has changed and we are no longer in a position to attract the type of industry which we attracted in previous decades. The nature of such industries and our economy now make us an unsuitable location from the perspective of those industries and that is why we must ensure we can replace those industries. However, unless we dedicate ourselves to this and ensure we have the necessary skills and technology available, we will be unable to take any significant part in this emerging arena. We need to re-position ourselves to protect future growth and prosperity. To achieve this re-positioning, we must foster scientific and technological innovation. We need to expand our research and development capabilities and establish ourselves firmly as a globally-competitive, knowledge-based economy whose innovations should lead to the creation of sustainable and high-quality employment.

Ireland invested in people in this way in the past. The decision to give free second level education was an important first step in this area and the foundation of the regional technical colleges, now institutes of technology, was also a significant development. It opened up new avenues to pursue the teaching of and research into the sciences and technology in general. The provision of free third level education by the rainbow coalition built upon those steps and allowed greater opportunities to pursue further higher level studies. We must ensure we protect this equality of opportunity in our education system but we must also ensure that people of all backgrounds can avail of those opportunities.

The main function of the foundation is to promote and develop world class research capability in strategic areas of scientific endeavour that concern economic and social benefit and long-term competitiveness, which is a laudable aim. It is also intended that the foundation will attract research teams and individual researchers of a world class standard to carry out research in Ireland.

To achieve its first aim, however, we must ensure that we put in the foundations at the most basic levels in our education system. The Task Force on Science reported the year before last and made 39 recommendations. Progress in relation to implementation has been painfully slow; 35 of these recommendations relate to the responsibility of the Minister for Education and Science, so perhaps it is a relief to the Minister of State at the Department of Enterprise, Trade and Employment, who is present, that he is not responsible. Partial progress has been made on 19 of these recommendations according to a reply I received to a parliamentary question, though I am not sure what is meant by partial progress. Work has been initiated on a further six and nothing has been done on the remaining ten recommendations.

Regarding the progress actually made, in a reply to a parliamentary question the Minister for Education and Science stated that new syllabi have been implemented at leaving certificate biology, physics and chemistry, which is true. However, this ignores the fact that there are still secondary schools which cannot offer those three core science subjects to leaving certificate students. We cannot progress and set up the foundation when there are schoolchildren who cannot take those three science subjects to leaving certificate level. That must be tackled.

The Minister also said that the revised junior certificate science syllabus is beginning in schools in 2003-04. While that is technically correct, the reality is far different. I welcome the new syllabus; it is more innovative, more practical and hopefully more stimulating than the previous syllabus. However, it is wrong to have a syllabus available in some schools and not in others. If the Government believed in equality of opportunity it would ensure that each junior certificate student in 2006 will sit the same examination having been taught in the same way in all schools. That will not be the case, however, as the syllabus starts in some schools this September and not in others. The Minister's offer of a special grant for schools implementing the syllabus ignores the fact that some schools just do not have the resources and equipment to do it. The new course has 30 mandatory experiments, which must be written up by students. If they do not have the means of performing the experiments they cannot report on how they conducted them, nor can they be examined on the experiments fairly. The implementation of a new science programme and the proper development of science as a subject in schools cannot happen unless the resources and equipment are provided. Science cannot be taught and certainly cannot be brought to life by textbooks alone. Unless it is brought to life we will not halt the decline in science as a subject choice among our students.

The Minister's reply went on to deal with other recommendations which relate to the science area. When mentioning the ICT grants for primary schools he failed to mention the massive cuts in these grants despite the departmental circular to schools clearly leading them to believe that grants of a similar level would issue in 2003. Schools all over the country borrowed on the expectation that these grants would still be available at the same level and they are now trying desperately to repay these loans as the Minister has reneged on the commitment of his predecessor. Schools have got to have the wherewithal to develop IT if we are to have any hope of developing this type of knowledge-based economy. The Minister claims that the ratio of pupils to computers in primary schools is 11:1 and 9:1 in post primary, which is a welcome achievement.

However, the reality in some schools is quite different.

Allied to the lack of IT facilities in some of these schools, many schools are unable to make proper use of IT facilities. I visited a school last week where the computers are still in boxes due to overcrowding in the school. There is no space in which to set up the computers. If a school gets a grant and does not spend it, the grant must be returned or it will not get it next year. The school is forced to buy the equipment so it will have it, but it does not have the space in which to operate it. Children will learn little from a computer which never comes out of the box.

If we are to develop in this area and if Science Foundation Ireland is to meet its aim, we must develop at a more basic level and that will take much more than lip-service and repetition of the amounts of funding spent in the past. We must ensure money is spent properly and that we are getting value for money. No school principal would ever turn down a grant because he or she could not afford to do so. I certainly would not ask a school principal to do so, but the grant system must be tidied up so that principals know what they are getting, what it is for and when they will get it and if it is promised for next year, it should be paid next year. The Minister, in turn, must ensure that the payment of the grant achieves the objectives for which the grant is being provided. A census was recently conducted in schools and I hope the results of it will allow the Minister to once and for all carry out proper strategic planning to ensure the proper funding and development of IT and ICT in schools. The importance of this cannot be underestimated. These subjects must not only be brought to life but they must be made a way of life if the aims of Science Foundation Ireland are to be met.

I welcome the Forfás initiative, which has been running for two years, of the primary science clubs working between schools and institutes of technology on a pilot basis. I hope this initiative will spread to all primary schools. It is vital that children are introduced to the idea of going to college at a young age and it is equally vital that at that age they are introduced to science as an option at college level. Children are shown through these science clubs that science can be fun but also how it impacts on their daily lives. It is important these initiatives are used as much as possible. Science Foundation Ireland must begin to take responsibility for ensuring the accessibility of our universities and institutes of technology to children at primary and secondary levels.

While I welcome this Bill, I would be less than genuine if I did not point out my concerns about the commitment of the Government in this area. If it truly believed in the importance of research and the development of a research and knowledge based economy, it would match its actions to its words. In 1999, a dedicated research funding programme, the programme for research in third level institutions, was established by the then Minister for Education and Science. Funding for that programme in 2002 was €43.2 million, yet funding in 2003 was reduced without any prior warning. The capital funding in 2002 was just under €23 million, yet this year it was €7.5 million. Current funding was down approximately €4 million. This has meant that research in third level institutions is being conducted on what can only be described as a stop-go basis, and there is much more stopping than going at present. This reduction has had the effect that little or no calls for proposals in basic research grants were forthcoming for 2003. This runs contrary to the Government's expressed desire to move our economy to a knowledge-based one from a manufacturing based economy.

The importance of basic research projects cannot be under estimated. They focus on high quality novel exploratory research which is not necessarily always linked to a final product or process. The dividends of this research are potentially greater than the direct funding of product and process development. To provide knowledge workers – workers with skills and capabilities – we need to invest in training and this is done by exposing them to the best possible teachers available. The best possible teachers available at third level are those conducting research because they are at the cutting edge of their fields of expertise in science and technology. If we do not treat them properly and provide the proper funding in this area, we will achieve nothing.

Section 7 mentions specifically information and communications technologies and bio-technology as two of the main areas on which Science Foundation Ireland intends to focus. I question that and I ask that Science Foundation Ireland does not in any way limit itself to these two areas specifically. Everything moves along, including science and technology, and we should not limit ourselves. We limited ourselves to the manufacturing industry for a long time but it has moved on. We must be prepared for changes in the economy and in the environment. Limiting ourselves to these two areas would be a backward step.

When the secretary general of the European Science Foundation, Professor Banda, visited Ireland in 1999 he stated: "The basic research has to be there. The only problem politically in defending basic research is the long-term aspects". The Skillbeck report on the Irish university sector stated that there was a need to "balance current nationally competitive research concentration in the sciences, notably biotechnology and information technology, with support and encouragement for the advancement of knowledge and scholarship on a broad front and in all parts of the institutions". What was said by Professor Banda and in the Skillbeck report highlights the importance of not concentrating on one area.

The development of basic research on a broad basis leads to new discoveries which lead to new products, innovations and it fuels entrepreneurship and economic activity. Our leaving certificate cycle is currently being reviewed in order to look at entrepreneurship and at trying to develop it. I would not call entrepreneurship a skill in that it is, to some extent, ingrained in some people while it must be developed in others. If we are to look at it at leaving certificate level, we must ensure those skills, if developed at that stage, are not hampered when students reach a higher level.

The previous Government recognised that an increased level of investment in basic research is a necessity to move Ireland to a more knowledge based value added economy. We need to generate new knowledge in Ireland to complement our strong manufacturing base. The national development plan identifies the development of world class research environments in higher education and State research institutions as a key objective of investment in RTDI, which is welcome.

The cuts which took place last year will not be reversed but I am concerned about comments made by the Minister for Education and Science on future cuts in the third level building programme. Dr. Mary Meaney, who chairs the Council of Directors of the Institutes of Technology, has said it will have a knock-on effect on the economy. I accept value for money is vital and that any investment made in third level institutions must provide a genuine and proper return and that the money must be spent properly but I question the aims of the Minister in this regard. Is this a revenue raising or a money saving exercise as distinct from a genuine value for money approach? Sometimes people argue that cutting capital funding is not as bad as cutting capital spending. Last year's cuts meant that colleges and third level institutions which had entered into contracts with people to carry out projects and research under their current spending discovered that they did not have the physical equipment to give to these people or the space for them because of cuts in capital funding. One cut has a serious knock-on effect on another area.

Science Foundation Ireland should have been placed on a statutory footing earlier, especially given the amount of money already committed to the foundation. The delay in placing it on a statutory footing impedes the implementation of value for money as a concept.

Section 7 deals with the objectives of Science Foundation Ireland. It places emphasis on the promotion and development of a world class research capability in strategic areas relating to economic and social benefits and long-term competitiveness. While these are worthy values to espouse, there are other values such as those to which science can make human advancement. They are not always purely economic and that should be noted as well.

The issue of value for money, which I mentioned, is also tied into the issue of accountability of the science foundation to the Dáil. Section 7 allows for the granting of extra functions to the science foundation beyond those envisaged in the legislation. The granting of these extra areas of responsibility should not be the sole responsibility of the Minister. The legislation needs to be amended to allow this House to have a greater say in any future direction which the science foundation may wish to take. Section 23 obliges the science foundation to prepare an annual work programme to be presented to the House and to prepare a strategy statement every five years. It is essential Members of the House are informed of the direction the Minister is giving the foundation in relation to its proposed five year strategy. Perhaps Members will also be given the ability to analyse and comment on the viability of the strategy.

Section 14(2) specifically states that in the performance of his or her duties under the section, the director general shall not question or express an opinion on the merits of any policy of the Government or a Minister or on the merits of the objectives of any such policy. I find this highly objectionable. We are asking people to work in a body and to promote, research and develop a knowledge-based economy but not to tell us if Government policy contradicts the aim of the foundation. That is an enormous contradiction and the foundation should be allowed express its opinions on Government policy if there is to be any real development in this area. Section 14(2) will not allow for this and it needs to be amended. It would make no sense if the foundation, to which we have given so much money and which is trying to develop world-class research capability, was not allowed to comment of Government policy if its policy conflicted with it.

I am also concerned about the lack of competitiveness in the economy. The legislation is a first step in trying to address this but the funding of research and development will be futile if Ireland is not seen by international investors as an attractive investment location. Our efforts to attract international investors through the certification of our research and development capabilities cannot succeed if Ireland is seen to be a place where high costs, poor infrastructure and public services are not addressed. A recent survey by the Swiss group IMD has shown that Ireland slipped from sixth to 11th position in 2000 in terms of the competitiveness of small countries. The Government has consistently made commitments to tackle our falling level of competitiveness but nothing has been achieved and we are falling further behind.

The deterioration in our competitiveness is worrying but it is exacerbated by the backwardness of our IT infrastructure. This is a direct result of the failure of the previous Government to invest in this area when money was definitely available to do so.

Our research and development facilities, broadband capacity and infrastructure in general, specifically in the area of transport, are well below the standards evident in other European countries. The Minister must act to accelerate the roll-out of broadband technology, as Deputy Harkin stated previously. There is a grave danger that broadband will be rolled out everywhere just as another technology is invented to replace it. That is the pace at which we are progressing and I am very concerned about it. It is undermining our competitiveness to the detriment of job creation and the advancement of research and development centres of excellence. I assume the foundation and the Members want to achieve excellence in this area.

While the funding of the foundation is a positive development, there should be a long-term commitment to funding. The Government's investment in research and development cannot be on a stop-go basis. It must establish a long-term strategy of funding if the foundation is to develop fully its research projects and if those projects are to bear fruit in terms of job creation.

The creation of a world-renowned, knowledge-based economy is totally dependent on attracting top-class scientists who will commit to long-term projects. They will come to Ireland only if they are guaranteed secure funding. If not, they will go elsewhere. We will have to do a great deal more to encourage our third level students to stay here and progress to post-graduate level. Insufficient numbers of them are doing so. I am all for our students going to universities in other countries as well because they have to pick up expertise in other areas. I hope those who want to stay here will be given every opportunity to do so.

I welcome the Bill in general.

I, too, welcome the opportunity to speak on this important legislation. The Minister for Enterprise, Trade and Employment stated at the opening of this debate that the new Science Foundation Ireland is central to the overall strategy to establish Ireland as a leader in the global knowledge based economy. I agree with her. There is consensus at all levels of society that we should create a knowledge driven economy and that we need excellence in basic research. We also need to make sure the benefits of this research are passed on to all the people and not just the major centres on the east coast. The Border region, especially, suffered much over the past 30 years because of the troubles in Northern Ireland. It has not seen much job creation in recent years. About 750,000 more people are working now than were working ten years ago. However, this will not continue to be the case unless we use research to provide new products and more competitive ways of producing them.

It is disappointing that science is not one of the more popular subjects in secondary schools. The recent figures are extremely worrying in this regard. Some schools do not even have proper classroom facilities, such as the Collegiate School in Monaghan. This school was promised that it would get proper classroom facilities and equipment so it could teach science and IT in a similar way to its counterparts in the town and especially those north of the Border. Science must also be encouraged at primary school level because if we do not encourage interest we will not have the desired results at secondary and third levels.

As the Minister stated, science, technology, research and innovation are the key words of the future. We must ensure that research capability in our universities and institutes is linked to a central body. The universities and institutes have a world of information and commitment which can move industry forward. It is clear that jobs are often based near institutes of learning.

I worry that we do not have any major centre of learning in County Monaghan although it is the centre of the furniture and food industries. Proper training in those sectors is available only outside the county. In the case of furniture, one has to go to the far west and the deep south. Opportunities for an appropriate institute were lost when St. Patrick's Agricultural College was closed and sold for £750,000. Its accommodation could have serviced the furniture, engineering and food industries. If these industries are not afforded the benefits of research and innovation, together with proper training, they will not survive when competing with low-cost production. The furniture industry in Monaghan is trying to compete with industries exporting furniture products into the country from western Europe. These products are being distributed by some of our industries, which are putting their workers on a two and three day week. If we do not improve the quality of our product and stop competing against the companies creating lower-cost products, the industry will have serious problems.

The Government's failure to control inflation in recent years is even more serious for the home based industries which have to compete on price. It is interesting that the Government organisation Forfás warned about this in a recent report and made it clear that we are in danger of losing jobs if the problem is not treated seriously.

Insurance costs have spiralled out of control. Recently, a long established, community owned furniture industry in County Meath stated clearly that its insurance cost was a major reason for its closure.

Research and innovation must be encouraged alongside infrastructural development, such as roads and broadband. Our quality food industry, now under serious pressure from questionable foreign imports, will have to move forward towards consumer ready products. I and some of my colleagues are sometimes blamed for the closure of Monaghan Poultry Products, where more than 300 people were employed. It lost out because it did not move forward, innovate and create new products. In 1996, with the support of Forbairt, I secured for it a grant of £1.25 million to start a modernisation programme. Unfortunately, they fell behind and did not utilise it and as a result were forced out of business. I give this example not just to justify my own situation but to warn other industries that they cannot stand still. They either move forward or go out of business. They must use the technology available which may mean the loss of jobs in one sector of a business. However, those who do not move forward or use the information available lose out.

The Government must tackle our deteriorating level of competitiveness. It is worrying that it has failed to do so in many areas. The imposition of massive indirect taxes since the general election and the failure to plan ahead during sound economic and financial times and make the decisions which would encourage investment, particularly in infrastructure projects, are part of the problem. We must look at this situation seriously and put the blame where it lies.

We all welcomed the commitments in the national development plan to infrastructure. Only the other day I travelled to Dublin via the new bridge at Drogheda, which shows what is possible. I got to Dublin in one and three quarter hours instead of the two and a half or three hours it normally takes. Infrastructure can be of major benefit in regard to time, and time means money.

The worrying thing in regard to the BMW region is that the money available is being utilised on the east coast. Innovation is important but infrastructure is equally so. We need to move industry into the regions if everybody is to be treated equally. In the last week I put a question to the Tánaiste and Minister for Enterprise, Trade and Employment, perhaps I did not make it detailed enough, to do with the number of jobs created by the IDA, etc., in the Border region. My question concerned the country in general and my own counties of Cavan and Monaghan.

The reply indicated that the number of people employed in IDA-based factories in the year 2000 was 140,000. The highest number we have achieved in Monaghan is 469 and that number is only as a result of a new factory opened last year. When the Minister looks at those figures he must ask if the benefits of the now dead Celtic tiger were spread equally around the country. I ask that this new body, which has been in place for some time, be given the teeth and encouragement to ensure that more isolated areas which have suffered, as we in the Border region have suffered as a result of the Troubles over the last 30 years, get a fair share.

My colleague from Sligo mentioned the broadband issue and delays and cutbacks in funding for it. We must look at innovative ways of making broadband available to smaller, more isolated communities. The way technology is moving, if we wait for broadband to be rolled out we will not get it until it is too late. We have an application in for wireless technology in the Border region between Armagh and Monaghan. It is vital that this technology be grant aided and supported in such areas. They may not have a proper road infrastructure but they should at least be given the structures to make progress possible.

I said earlier that we do not have proper college structures in Monaghan. It is possibly our own fault for allowing others to get away with the places. The college for further studies in Cavan has 750 students whereas Monaghan has only 130 or so. I tried to get Queen's University and others involved in Monaghan some years ago but there was reaction against my proposal and it did not work out. The lack of jobs in high-tech industry is a problem for us. Our young people who get a good college education do not have the opportunity to return to their home area to work. That is disappointing for them but it is more serious for long-term infrastructure in the area.

I know a young man who has his own industry outside Carrickmacross. I visited him when he was setting up in business in the old cow byre of his home. He has moved forward from that to an advance factory in Carrickmacross and since then to his own factory. We do not give that sort of person the level of support we should. If a foreign industry moves into the country it gets the red carpet treatment. At least I thought it did until I looked for the figures for those visiting the northern region. Unfortunately the Minister was not able to tell me how many came to Monaghan but out of 147 site visits by industry this year, only 17 came to the north-east region. That region includes the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern's, constituency of Louth. No doubt of the 17 site visits to the region, very few were to Monaghan. We need this issue sorted out.

I have some worries about the Bill. The National Roads Authority is an independent body and if I want to find out what is happening in regard to bypasses in Castleblayney, Monaghan or elsewhere it is difficult to get answers because it is not answerable to this House. Is the Minister satisfied that this new body will be answerable to the House? Due to the fact that the Government is committing a sizeable amount of money to the body, it is vital that it is answerable to the House, or one of the committees of the House, on a regular basis.

A body I was involved with, the CBF – now An Bord Bia – is independent but depends on finance from the State. In spite of the difficulties in the agricultural sector this year its money was cut at budget time. In her Second Stage speech the Minister, whom I have no reason to disbelieve, said that this new body is one of the most important bodies we have had and that it will bring innovation and research which will move the country into a new era of competitiveness as a result of being able to produce goods which others cannot. It can only do that if it is answerable to this House and if the House provides the finance it needs, not just on a once-off basis but on a guaranteed long-term basis. There is nothing as demeaning for senior staff who commit themselves to an organisation than to find themselves having to cut back in the middle of a programme.

That has been seen recently in regard to partnership programmes at county and national level. Different areas were fairly sure when they began the programmes last January that they would have the funds to carry them through but they do not have them.

It is vital that the new organisation, which all Members generally support, gets the necessary commitment from Government. We must be sure, when the body puts forward programmes and takes on the high-quality staff needed to make this work, that it does work. In turn, the body must make sure it co-operates with the universities and colleges of technology. In my experience, particularly in regard to Dundalk IT, they have given tremendous impetus to the provision of information and training of personnel in the workforce, relevant to jobs in that area. That type of contact is vital.

I wish to deal with a short but important story. In 1996, I learned that a company in Carrickmacross dealing in plastic was to be provided by Forfás with a plant in County Leitrim. Eventually, the company was persuaded to move to Castleblaney instead of County Leitrim. However, I am concerned by this example of a national body not listening to anybody. If it had not been for the then Cavan county manager, Mr. Joe Gavin, advising me on what was happening, I would not have known about it until it was too late.

This matter raises questions about the commitment of a national body to the regions. Counties Cavan and Monaghan are in the BMW region and the people of that area hear regularly about commitments, including that a large percentage of the jobs coming to this country in the near future will be committed to that region. We have seen a Government which had an opportunity to locate a cross-Border body in the region moving it instead to County Cork. If this Government has any realistic support for the Good Friday Agreement, Science Foundation Ireland must work with its counterparts in Northern Ireland, and the people of the Border region, to ensure that the promises of that Agreement mean something to those who have suffered most over the 30 years of the Troubles.

The people of that area did not have the opportunities which others had. While travelling in Canada in recent weeks, I was told by many people that when they visit Ireland, they arrive in Dublin or Shannon and are then directed to Galway or further south. However, they are certainly not directed to visit the Border region.

One of the research programmes which this structurally-based body could carry out would be to consider the situation regarding the development of tourism. There should be a willingness to re direct tourists to all parts of the island, not just the handy areas of County Kerry, the west and the sunny south-east. The Border region has possibilities in the beauty of the rolling hills of County Monaghan, the lakes of County Cavan and otherwise. We have reason to work with our counterparts in Northern Ireland in that regard. While the overall body has been established, it does not seem to be delivering at present. We need to research this area to find how we can benefit from and utilise the basic infrastructure which is in place. I wish the Bill well. It has my support and that of my party.

I was not aware I was to speak in the House until 20 minutes ago which, depending on how one looks at it, is either a boon or curse for Government members. I am the education and science spokesperson for the Green Party and have a particular interest in this Bill. I have been involved as a member of the Friends of Science since it was established and have learned much in the interim about science and how it operates, and about the benefits of having a body such as Science Foundation Ireland. While I will address some of the merits of the Bill, I will also speak in a wider context to say that while Science Foundation Ireland as an entity is welcome, we will be on a hiding to nothing unless the other coins in the slot fit.

I want to deal with a number of angles regarding this subject. In doing so, I wish to highlight some of the contributions which Government spokespersons or backbenchers have made to the debate. One of the first I noticed was that of Deputy Eoin Ryan who said that the Bill signals a fundamental change in our appreciation of the importance of research and development as an element of national infrastructure and that, in concert with other initiatives by the HEA, the IDA and Enterprise Ireland, it aims to put us firmly on the map as a research performer. If it does signal such a change, it has been a long time coming. We have a lot of catching up to do in that context and it is not good enough to simply set up a body which is, at present, operating on an interim basis as a sub-board of Forfás and will, through the Bill, be established as a separate legal entity. It is not enough to establish Science Foundation Ireland unless some of the other parts of the equation are included.

The stated aim of section 7(1) of the Bill is to create a standard of excellence in oriented basic research, to significantly develop our capability to conduct research by attracting world-class researchers to Ireland, and to have these scientists conduct the basic research on which future technologies will be built. There is a major flaw in that aim. Ireland has among the lowest level of indigenous research and development investment throughout the EU whereas Finland has the highest. It is no surprise, therefore, that Finland has a much more successful indigenous enterprise level. Nokia, a home-grown Finnish company, is a world-class brand which has taken over the mobile phone market and other aspects of telephony. Ireland does not have many home-grown heroes and where we do, they seem to be hubs of US multinationals.

I have a lot of respect for US multinationals. In a previous incarnation, I worked as a business journalist for manufacturing, research and development and IT magazines. I had the opportunity to visit many multinational companies, some US owned, some European owned and a few which were Irish owned. The Irish companies were generally smaller IT companies trying to blaze a trail in the software area, and some where quite successful in that. I no longer work as a journalist and am trying to be a Deputy. However, I worked full time in the field of journalism from 1992 until I became a councillor in 1999, and only gave up journalism completely in 2001 in the run-up to the general election.

Over the period of my work in journalism, I noticed a sea change in the economy and the boom which was created. During the debate on this Bill, there was banter from Deputies on both sides of the House regarding who was responsible for the boom. Every party that has been in Government can take some responsibility for the boom as much as the laissez-faire principles of the most recent Governments. In many ways, it was the IDA, learning the lessons of the past in trying to attract research and development and overseas industry to Ireland, that created the boom and the skilled workforce enabled us to meet the economic conditions those companies required. However, we have now moved on and may not have a similar boom for 50 years. Deputy Harney constantly tells us that we must move forward, add value and become more innovative in our approach.

The Industrial Development (Science Foundation Ireland) Bill is welcome in many ways. However, it has a narrow focus on IT and biotechnology, whereas it could reach out further and create the kinds of conditions that would enable indigenous research and development to thrive. There are many entrepreneurs in Ireland who, if given the opportunity, would be able to make a significant economic contribution.

I am from the 1980s generation, which used to dance to the Human League, Culture Club, Wham and other bands that people laugh at now, and what I remember from that decade is high unemployment. Many people in my peer group – friends, relatives and friends of friends – studied some form of science-based subject, but were forced to emigrate because there were not enough jobs. Even when the jobs became available, to these people's shock and horror many of them found that, despite their qualifications, they were doing bit jobs. They were fitting into a slot for a multinational company which wanted to take a modular approach to industry and research and development. These people were usually over-skilled for the jobs they were doing and, while they welcomed being able to work, earn money and invest at home, it drove others away because they were not able to get the right job in order to set up a home base and earn what they felt was their worth.

The next generation has now come on and, up to recently, people have expected to earn huge sums in software development, for example. They can click their fingers and name their salary, perhaps saying they have received a better offer from a Canadian company, and such salaries rose rapidly. Now that the economy is a bit more tetchy, people can no longer command these salaries. It is a welcome lesson that such people cannot get what they want, because a certain generation grew up thinking this is how it is, whereas some of us have had to go through life the hard way. A little hardship is good for everyone, but we do not want to see this well-educated generation leaving the country and staying away. We do not want Deputy Brian Lenihan following in his late father's footsteps by saying that this island is too small for all of us. Nonetheless, it will go that way unless we are able to offer a true scientific community.

I recently joined Science Foundation Ireland's friends of science group and I have one of its glossy brochures with me. I have met Mr. Harris, who is doing a good job. I do not want to denigrate any of the individuals involved in Science Foundation Ireland. They are doing a good job, even though the foundation has not yet been established on a statutory basis. Clearly, more needs to be done outside the scope of this Bill for it to work and the Green Party cannot have confidence in the Bill in the absence of those other measures.

An interesting magazine cutting was included with Science Foundation Ireland's brochure, the headline of which reads: "Ireland's new NSF-inspired funding agency has more money than scientists had dared hope for." In one sense that is welcome, because science has not received money in the past. However, while some of the new measures are welcome, unless we encourage people to study science subjects at secondary and third level and remain in the country, we will have a problem. This goes back to what the Minister said about Ireland being a value-added economy. If one wants to add value, there is no point in totally kowtowing to the multinationals.

We may be engaged in setting up successful research departments in many of the colleges and integrating them with such companies but, in many cases, it suits the companies' own ends because they operate on a modular basis in that they want particular sections of projects to be executed in Ireland, in consultation – via modern telecommunications – with people based in Canada, the US and the Far East. In these cases, everyone is part of the team and the Irish contribution is essential. This keeps people in the country and contributes to our scientific community. However, in the long-term, we must facilitate indigenous research and development to a far greater extent for any decline in the economy. There is talk of a recovery and I heard a journalist talk about a recovery in 2008 because of the Olympic Games, which goes to prove that economics is a social science, based on social interaction. Therefore, there is no way of knowing what way the economy will go. If the Government said tomorrow that house prices were going to crash, and enough people believed it, house prices would crash. The trouble with economics is that it is not predictable. However, people's response to the economic cycle is predictable. If one is able to respond positively to a cycle when times are bad, the impact will be minimised and, when things are good, one will reap the rewards.

My colleague, Deputy Eamon Ryan, whose brief covers this Bill, and I are not confident enough is being done to invest in science in order to ensure we reap the rewards. As I said earlier, the Bill has a narrow focus of ICT and biotechnology. Comments are frequently made about Green Party members being Luddites and that we wish to return to the year dot and start from scratch. It is interesting, therefore, that Green parties throughout the world, including ourselves, are to the fore in promoting scientific research. We are trying to make it ethical and environmentally sound and we have certain concerns in relation to biotechnology and genetic engineering but, on the whole, being environmentally-conscious and a friend of science goes hand in hand.

There are many things which science can offer which can also help society. I do not want to refer to too many clichés, but one must examine the potential of wave and wind power off our coast. Studies have already been carried out off the coast of Scotland which indicate that four times as much energy as is required by the UK can be produced purely through wave power. I have no doubt that the same is true of the west coast of Ireland and I do not see why the Government does not increase its investment ten-fold in this area. As we have seen before with oil exploration, the Government has a carrot and stick approach to these companies. They will not drill if the penalties are too great and the Exchequer will not earn much if they strike black gold. The same applies to gas, although to a lesser extent.

If we invest in research and development, we have the potential to play a leading role in terms of the development of wave technology. We could be an energy exporter in that field. However, the question is whether or not the Government will invest significant funding in that area. I think not. I do not think the commitment is there, because that would be too visionary. So far, the policy seems to have been to get jobs from the multinationals, but create the Irish jobs through sub-contractors – let the suppliers to the multinationals be the indigenous job creators rather than the Irish innovators.

Perhaps it is a social issue, maybe we still have an inferiority complex. When Bob Geldof was trying to set up his own business in the 1970s, he was asked by Conor Cruise O'Brien, "Is that it?", and told he had not a chance in hell because it would take too long. Bob Geldof went off to Canada, did some work and then came back and tried a totally different tack. We know he made it and we recognise the contribution he has made.

Following recent economic success, we should have the confidence to go past that and take risks. The Government should invest in risk because it is the basis of entrepreneurial activity, the safe option will get us nowhere. By investing in wave technology or rape seed oil, we could be self sufficient in our energy requirements – such scientific research is desperately needed. We could become a leading player in technology that would be home-grown in conjunction with the universities and those who are willing to establish colleges.

I know of one person who wants to set up an IT college in west Clare. Such people are looking for funding but do not always get it. We have, however, the likes of Media Lab, which is attracting a lot of foreign scientific knowledge but is not necessarily investing in our best and brightest. When Deputy Gormley was Lord Mayor of Dublin in 1994, instead of using the normal Volvo, he used a Volkswagen Golf that ran on home-grown material. If enough money was put into research in that area, it could be an economically viable material.

As Green Party education spokesperson, I am concerned about science in schools. People from the STEPS programme that attempts to involved people in engineering have made representations to the Joint Committee on Education and Science. They are doing a good job but unless there is investment to ensure every primary and secondary school has sufficient IT equipment and that every second level school has proper science laboratories, engineering will not come to the fore. People will not study science if it is seen as a difficult subject or if they cannot do it properly. That is part of the problem.

The investment needed to make Science Foundation Ireland a legal entity should be matched by proper investment in science in education because, as I said to the Minister for Education and Science, in relation to science, it is crucial.

A number of IT pilot projects were set up at primary level, including Wired for Learning, which involved piggy-backing on the IT expertise of American companies and putting something totally unsuitable to Irish culture into schools. In feedback, the schools said they were happy to get the computer equipment and adapted it to their needs because there was a shortage of equipment but that did not mean that Wired for Learning worked.

We should take the long-term approach when it comes to the development of science and invest at the front end of the cycle, even if money has to be removed from the special savings investment accounts, borrowed or, having chloroformed the Minister for Finance until after the budget, raised through increased taxation for higher earners. The money must be provided and spent now so the rewards can be reaped.

In the next economic cycle we will need a knowledge-based economy but it is not good enough to have a knowledge base that feeds into a module of a foreign company because eventually that knowledge base will exist in eastern Europe and Asia and the same thing that happened to our manufacturing will happen again. The only way to do this is for us to take control of our own destiny and invest in our own knowledge base alongside the excellent work being done with multinational companies.

While welcoming many aspects of Science Foundation Ireland, it is not enough. More needs to be done in indigenous research and development in forms of technology other than ICT and biotechnology and investment must be made at the primary and secondary levels.

Due to the structure of Dáil debates there is significant repetition this afternoon and, unfortunately, I will not be any different so I apologise to the Department and Oireachtas officials who have to sit through their version of groundhog day while they are here.

The role of Science Foundation Ireland is to focus on fields that underpin the biotechnology and information and communication technology in this State. When I was reading reports on the issue, words like "excellence in science", "technology innovation" and "first class research" fall off the pages. The reports can only offer a synopsis of all the work that has been done by the Minister, officials and all of those people who have been involved in ensuring Science Foundation Ireland will be a success in the future.

In a previous debate on this Bill, some Members questioned why it was not discussed at length before Science Foundation Ireland was established. There have been complaints about the fact that everyone else had their say before Members of this House. Science Foundation Ireland will be fundamental to the future development of Irish industry and, whatever about the past, we will have ample opportunity to discuss the development of this organisation into the future. This will be an important role for the Dáil in years to come but Deputies on both sides of the House must grasp the ethos needed to make the foundation a success.

We must encourage and develop an environment that will sustain the successful implementation of this project and it must extend far beyond what we can discuss today. Science Foundation Ireland is spearheading the arrival of a new sector in our industrial base, one based on research and development, that many of us know very little about. There are a number of variables, such as the economic and financial implications to the State, the role of the education system and the practical issues of research as well as the ethical issues surrounding it. All these mean that the future development of Science Foundation Ireland will be very difficult to lay out before the Dáil in the course of one debate.

In highly developed technological economies like the United States, this industrial base has been developed over decades and we are in our infancy in comparison. We are attempting to buy ourselves into this industry and have a serious game of catch-up to play. If all objectives of Science Foundation Ireland are properly funded, however, and if it receives the political commitment it needs to succeed, we will see a change in Ireland's industrial development that will surpass any of the economic changes that Seán Lemass dreamt about when he promoted a new approach to industrial policy in the 1960s.

In the same way that changes made in education by people like Donogh O'Malley primed Irish society for the industrial development of the 1960s, we now have the educational ethos to make the ideals of Science Foundation Ireland work. We need single-minded political will and a far-sighted view from all political opinion in this House over the coming years to succeed. There are many black holes that could quickly destroy this project. There is political ignorance, because many people do not understand science, political fear because we do not want to support something that may rebound on us, a lack of political commitment because we do not see progress fast enough and there may be a lack of willingness to finance a project where we might not see the returns of for another five years, even until after the next election.

The political picture, however, will be set by how we react to the basic outcomes of any research-based industry. This must be put across by the Government of the day because only a small proportion of the numerous research and development projects that will be funded will ever provide suitable results that will move many of these projects on to the next stage. Even fewer will result in significant commercial projects that we can implement in a wider industrial society.

Therefore, for many who are disinterested or who are not prepared to fully embed themselves in this significant new development, reading the annual reports from Science Foundation Ireland will not make a pretty picture. This will be the important role of the Dáil in the future. The annual reports must be laid before the Dáil so that Members who have a genuine interest in the future of biotechnology and who see the IT sector as a way forward for Irish industry will be able to read these in an open and transparent way. This will enable us to see how this strategy is working for Ireland. I presume the five-year strategy will remain under the scrutiny of a relevant Oireachtas committee. This may need to be changed in the future and it is important that Members have a say in how this will proceed.

In many respects, the future of Science Foundation Ireland is beyond our control because we do not know how the economy or research will develop or the result of the many projects we will implement, all of which will cost millions of euro to the taxpayer. There is a gamble involved and we must look at in that light. We are trying to do something that is new, innovative and has not been tried here for at least 40 years. However, we can influence how the building blocks of this new technology are built on. Some of these issues have been raised by other Members during the course of the debate.

The educational system must get the resources needed to promote a science-based culture to reach its full potential. Many of us have successfully completed science-based degrees even though we attended secondary schools with Victorian type school laboratories. Significant progress has been made in the quality of the laboratories in most of our third level institutions. Many of our secondary schools are still nothing more than a couple of sinks and a few test tubes away from what is called a laboratory. All schools are affected. Numerous questions are put to the Minister for Education and Science on a daily basis about the lack of funding to secondary schools and especially to the sciences and laboratory services. Often there is a bias against girls' schools. This needs to be corrected quickly if we are to develop the ethos of Science Foundation Ireland.

Many of the physical resources are in place in third level institutions irrespective of what many say. The level of research in these institutions is also of a high academic standard. If there is a weakness in our third level institutions, it is in moving this high calibre research from the campus to the workplace. We are well respected in many areas. A relation of mine who works as a lecturer in mathematics in the University of San Diego was impressed by the way we can have a mixture of academia and business in our universities. He spent a year in the faculty of mathematics in UCC and was impressed by the way we can mix the pure application of theory into the business side of mathematics and engineering.

A brief discussion with him about the mixture of university research with business input and the Government support that is needed to get this idea off the ground means there is a daunting task ahead, not only for the Government but for all who genuinely believe this is the way forward. A small number of Irish companies continue to extend the bridge between the university and the business world. We can learn from these people, many of whom would be well known to those involved in Science Foundation Ireland. Many professors and lecturers, either still working in universities or who may have left recently, have set up companies that have put the practical application of university research back into the business world. Science Foundation Ireland seeks to make this common practice and a new entity for Irish industry. That is something I support.

The Government has the important role of promoting the commercialisation of Irish research which is supported by taxpayers' money. There will be a need to tighten the ownership of this research but, more important, we should be careful that we do not exert too much control because tightening the band too much can often be counterproductive in the long-term and can kill the research we are trying to promote.

If Ireland succeeds in developing the ideals behind Science Foundation Ireland we will also see changes in society and will need to be more proactive in seeing these changes through. This will not happen on its own. While Science Foundation Ireland may change industry, our society will change quickly with it.

Information technology has become an integral part of Irish business. There is also good penetration in the public sector where the transfer of information is vital. We are still lagging behind even in areas where we have information technology protocols. Their implementation has been erratic and piecemeal. I have seen this in the health services where there are no real software packages that would allow heart service providers worldwide to speak to each other via the Internet. The health boards, hospitals and the Department of Health and Children all have different systems. I am aware the GMS has set up its own information unit to try to get this working in a more logical way. This idea should be extended to all Government services and all of us must become more IT-aware.

It is time the Government looked at the broad picture and stopped paying lip-service to issues such as broadband. We need to get broadband rolled out quickly, otherwise all of this will falter. It will operate around a couple of major urban areas to no great extent and it certainly will not be the great dream and idealist view we have of Science Foundation Ireland at present.

IT in our schools is extremely important and it is time to get real on that as well. As politicians, we must embrace these new developments. We may well look back at this day and see that what we are doing here today is the same as what happened when Seán Lemass started on the road to industrialising Ireland 40 years ago. I hope that is the ethos coming from the Department of Enterprise, Trade and Employment in relation to Science Foundation Ireland. If so, I would certainly be supportive of everything that is done and I commend the Bill to the House.

I am pleased to have the opportunity to contribute to the debate. I welcome the Bill. I note that €120 million has been allocated to the foundation and this is now being put on a statutory basis. It is time this was done. It is important that the funding is put in place in regard to our educational system. I commend the education system in Ireland. There is no doubt we have the finest third level students. We never had better educated people and we need to keep ahead of the posse. Ireland kept its education system ahead of many other countries in the past. I compliment those who have been involved in it, those who built it up and those who fought for funding from the State. The recent attempt by the Government and the Minister to impose third level fees would have been a step in the wrong direction. Generally, people have an opportunity to go on to third level for further education. I am glad the day is gone where if one was not the son or daughter of a doctor, a solicitor or a vet, one could not expect to proceed to third level.

Some may criticise the points system and say it puts pressure on students but there is no better system. Irrespective of one's background, if students do well in examinations and get the necessary points, they get the opportunity to go to college. They should not be debarred from this opportunity simply because of third fees. If they have the intelligence and the points and want to go to third level, every obstacle should be removed and they should be encouraged and helped because these are the people of the future.

What stood to this county during the past 20 years, and every industrialist who came here made this point, was our well-educated work force. That is why I am glad this foundation is being set up and that the funding is being put in place. However, there must be accountability and I know a report will be laid before the Dáil every year. I do not want to see other quangos developing such as the National Roads Authority and other State agencies where there are jobs for the boys and the girls but no accountability. Instead of the funding being put where it should be, there is discussion of establishing sub-committees here and there. It worries me. We have enough committees in this country, we have enough reports and we have enough people who know what the problems are and what has to be done. We do not need many more committees and State agencies.

We are giving away too many powers to outside agencies which is why I hope Science Foundation Ireland will be accountable to the Dáil. I hope the foundation's annual report will be examined by the Committee of Public Accounts or some other Oireachtas committee. We must bring in the chief executive to go through the reports and every other bit of work Science Foundation Ireland has done over the previous year. Everything that happens in this country should be accounted for to the Dáil. The National Roads Authority should have to come to Leinster House on an annual basis to account for itself rather than attend when invited to do so by committees. The authority should be required in legislation to come before the Dáil and be answerable to its elected Members.

I listened earlier to Deputy Harkin and I must agree with many of the points she made regarding the IDA and economic development. There has been a bit of a downturn in the economy and already the IDA is running for cover. The IDA and the Government tell us there are people coming here who wish to invest. They want to invest in greenfield sites in the cities, near the universities and in the bigger centres of population. I say to the Government and the officials in the Department of Enterprise, Trade and Employment that we must provide for regional development. The IDA and the Department must do what is necessary even if it means creating a bias towards the west of Ireland and rural areas. It should be done through extra employment and other grants if that is required.

Last week, I raised the issue of jobs in Ballinrobe and said that I was disturbed by what happened with the IDA. A man from Wales was prepared to invest in this country by buying a factory in Ballinrobe which the IDA has leased from a family for 35 years. The IDA pays €120,000 per annum for a factory which has been empty for almost 20 years and there is 15 years left on the lease. It would be better to use that money to double the employment grants to bring people to the west of Ireland. The IDA and the Government had an opportunity to do something but they let down the people of Ballinrobe. The IDA tells us that the three priority spots in Mayo are Westport, Castlebar and Ballina as these are the major population centres in the county. Ballinrobe had a factory which was vacant for 20 years and there was a man who was prepared to buy it for €750,000, which was the going rate according to a valuation. The IDA and this man fell out over the employment grant as he was looking for more than the €3,300 which was offered. If the IDA and the Government were committed, we would not have lost that factory last week and there would be jobs today in the black spot of Ballinrobe. The business in question would have started with 25 workers which would have increased to 80 over four years. In a small community 80 jobs mean a great deal.

Deputy Harkin is correct to state that the west has been deprived of infrastructure since the foundation of the State. We cannot compete with Dublin, Cork or any of the big cities. The N5 from Longford to Strokestown to Westport is not right. The officials within the Department may nod their heads, but major industrialists employing thousands in Mayo are coming to the Minister and the Department every week to explain that their goods are being damaged in transit from those towns to their destinations on the Continent. These companies are experiencing many difficulties simply because goods are being transported along bad roads which damage them. This affects our jobs in the west of Ireland which is why the proper infrastructure must be put in place.

I heard people refer earlier to broadband technology which is the future. A major information technology company was established and operating in Westport on the basis that broadband technology would come to the town. A few weeks ago, I was walking down the street and I saw a lovely sign in the company's window which said that while Westport was a lovely town to do business in with a lovely population, the company regretted that it had to move to Galway due to the absence of broadband. That is wrong and it should not happen. We should be given the same chance as the cities and we should be given the same opportunities to employ people.

I listened to somebody speak about gas. I attended a recent public meeting on the matter and I make it clear to the House that I want gas to be piped on the basis it is done in the Shetland Islands. The Shetlands are the size of County Mayo, but the locals have control of the site being exploited. A levy is paid for every bit of oil and gas which is piped to pay for the educational system and the hospital system. There are new schools and swimming pools. They have got something out of it because that is where the oil and the gas are coming in. In Mayo there has been a big find.

Can such provisions be made retrospective? Gas comes into my constituency.

If the Minister of State was doing his job, he would have that done. I am trying to ensure such measures are in place in Mayo when these guys come in for planning permission and there is a problem with the site. The site was sold to a private company by Coillte, a State agency, which is not supposed to sell land unless it is in the public interest to do so. We had the land and the opportunity and we should have made Shell pay a levy to Mayo County Council. The proceeds of that levy should have been spent in Erris to provide infrastructure including roads and swimming pools. I would support the Minister of State in making such demands in Cork.

We do not know where the directors of the multinational companies which come in are, but all they care about is getting the gas out. Taxpayers have to pay to bring the pipeline from north Mayo to Galway. The national grid comes from Dublin to Galway, but it should come the whole way to the west. The former Minister for the Marine and Natural Resources, Deputy Fahey, negotiated with Shell to bring the pipeline from Erris to Galway, yet to this day we do not know which towns, if any, in Mayo will receive gas. I put down a question on the matter and I was told to write to Bord Gáis which tells me that towns will receive gas if it is feasible and possible to provide it. A natural resource is being taken out of north Mayo at the expense and hardship of the local people while the rewards go to multinationals outside the State. That should not happen. We should be rewarded and the infrastructure should be put in place in north Mayo.

We should never be ashamed to invest in education and to look to the future. We looked to the future in the past and we were rewarded. I want to see this Bill enacted and to see its provisions working properly to fund research and students in universities. I want us to be ahead of the posse in the future to allow us to address whatever changes take place in society. There is no doubt that what has happened over the last ten years would not have occurred in other countries over 60 or 70 years. There have been major changes. We should never stop people who want to invest in the education system as doing so will pay dividends in the future.

The Minister of State and his Government have in gas a resource which can benefit the country and industry, but the people of Mayo and of Erris deserve to be rewarded for it. I hope the Government is examining that and providing the badly needed infrastructure which Deputy Harkin and I have been talking about for years with regard to roads and water and sewerage schemes.

Rural areas have much to offer multinational companies. Look at companies such as Allergan Pharmaceuticals. Allergan employs 1,000 people in Westport. Many American companies left this country when the ten-year tax break expired but Allergan did not leave. That company has been here for more than 25 years and has created significant employment, both direct and indirect. Companies have been built around Allergan. One is Berry's Printing Works which last week announced further development. That company was started by a local man in the corner of a shop in Westport and it now employs hundreds of people. That happened because there were American companies such as Allergan, which have been good for the west of Ireland and its people. However, these companies would not have come here unless our people were educated, prepared to work and had the necessary skills to work in these industries.

Ireland has to be ahead of the posse. We are not competitive at present and have lost ground to our competitors. We must have skilled and trained people.

This Bill affords me an opportunity, like my colleagues from the west, to discuss the competitiveness of that part of the country. I welcome the Bill. It is time to make a considerable investment in biotechnology and ICT research. Future expansion and development in this country will depend on these two areas. If we are to compete with our competitors throughout the world, we must invest in research.

Ireland's contribution to investment in research over the years has been dismal. According to a report in a national newspaper, about 1.2% of our gross domestic product is spent on research. The EU average is 1.8% of GDP and the Community has set a target of 3% of GDP by 2010. We are lagging behind. That is reflected in our overall competitiveness. A number of speakers have referred to the mid-term review submission to the Government by the Institute of Engineers of Ireland on the national development plan. It is worth putting on record how Ireland ranks in various areas. In education and skills, for example, Ireland is ranked eighth of 14 countries, with expenditure of 5.4% of GDP. The Minister for Education and Science and the Taoiseach, when they are challenged at Question Time and on Leaders' Questions about investment in schools and science laboratories in schools, say we are doing well. In fact, we are ranked below average among our main competitors and that investment is continuing to decline.

Investment in information society infrastructure is considered crucial for future economic growth. However, in terms of broadband provision Ireland is 15th out of 16 countries surveyed. It is 12th out of 16 in terms of Internet users and ninth out of 15 in terms of technology achievement. It is tenth of ten countries surveyed for digital subscription. I tabled a parliamentary question today to the Minister for Communications, Marine and Natural Resources about the management services entity tender for broadband in this country. People have been waiting for this for some time. Despite the fact that it was promised months ago it might still only appear this week. A number of international companies have been waiting for this and they are growing impatient.

This happened previously in other areas, for example, with Digico. Companies waited and waited but nothing happened. The general attitude towards Ireland as a country in which to do business is not as positive as it was ten years ago. There are also other issues such as inflation, wage costs and insurance costs where we are out of line with our main competitors. The World Competitiveness Yearbook was published last month. It points to a further deterioration in this country's international competitiveness ranking. It ranks Ireland 28th of 29 countries for maintenance and development of infrastructure and last in the ranking for distribution infrastructure such as roads, trains and planes.

This country has a major problem. Some years ago, when Ireland was making its case for the last tranche of European funding, I said in the House that we should have carried out an audit of what would be required to upgrade our national primary and secondary roads. We should have gone to Europe and said that if Ireland was to become a First World country, it needed the investment indicated by the audit.

Ireland is a First World country.

It is a First World country with a Third World infrastructure. One reads it everywhere.

The Deputy is being negative.

I am not. It is a fact. Ireland has a Third World infrastructure. We rank highly in terms of family income; we are above the European average. However, our basic infrastructure is Third World. Anybody who goes abroad, and many will travel abroad this summer, can see this for themselves and see the progress in Portugal, France and Spain with regard to road provision. Some of our major road networks have deteriorated. Some of these roads were provided 15 years ago and they have not been maintained properly because the money is not available for it. Even if one travels from here to Naas one can see the deterioration of the dual carriageway.

Ireland has a major problem. Our competitiveness is going in only one direction. This Bill is making an effort in the research sector, which is not before time. However, there are warnings. I read another newspaper article recently which quoted the chairwoman of the Irish Research Scientists Association, Dr. Fiona Regan. She said that although Ireland is investing a considerable amount of money, €1.2 million, in research generally under the national development plan, it is most important to get value for money. She said: "We have come on in leaps and bounds for increases in research here, but as IRSA has always said, there is a problem in the way money is being spent." Deputy Ring also made that point. With regard to the announcement last month that SFI would invest €42 million in just three research centres in Ireland she said:

I think we need to be careful. I think we can get money better spent than putting it into three centres. Are we actually looking ahead? The way to look ahead is to create a perpetual fund that is independent from economic downturns. Research should never be in a position where it is threatened by a lack of funding.

This happened even this year as regards university provision. Funding for research in third level institutions is one of the areas in which there was not a cutback but a pause, as it was described. We are now providing the money for research but not for the buildings in which it is carried out. That is a retrograde step.

I recall the end of the 1980s, when there were major cutbacks. Coming from an agricultural area, I had a particular interest in agriculture. Money for agricultural research by bodies such as Teagasc, formerly ACOT, was cut at that time. It was one of the areas that was targeted. As a result, we did not put the necessary investment into developing products based upon our commodities and fell way behind. That is one of the areas of criticism Commissioner Fischler singled Ireland out for when he visited some time ago. He said that we did not diversify into other products. That is the reason we now lag behind as regards the provision of many commodities based upon our food industry. At that time, we warned the Minister that if he cut back on research, we would suffer down the road as has happened in the past. This is exactly what Dr. Regan is saying – that if we are to remain competitive, there should be a continual revolving fund for research that does not depend on how healthy the economy is at a particular time.

As a former teacher, I must say that the fall-off in science studies in second level and among graduates in related disciplines at third level is a serious concern. The Minister of State will be familiar with the report of the task force on physical sciences and the third report by the expert group on future skills needs. The message from both is similar – investment is needed at both second and third level in science facilities. As I mentioned, there was a pause this year in investment in third level.

Irrespective of what we talk about here – and we will speak about the arts shortly – unless emphasis is placed on science subjects at second level in particular, with an introduction at primary level, we will not create the scientists of the future. Some of the top researchers and scientists in the world are Irish but are not living here. I have met several of them in places like Silicon Valley. They are scattered all over the world. Hopefully, this fund will now bring them back to Ireland.

It is very important that they do not come here just here because money is available in the short-term. If that is the case, they will subsequently leave. It will take money to keep them here, but the knowledge they have gained at our expense will be dissipated and disseminated throughout the world if they leave because they cannot be supported here. They must be paid huge wages. Some of these people are head hunted around the world by other research centres. There is a very select group of international researchers and scientists who are part of a very tight network. They communicate with each other all of the time. If somebody is doing very valuable research here that may be needed elsewhere, he or she can be lured out of this country. That is why it is very important that we retain these people in this country when a particular programme is finished.

I certainly welcome this Bill which represents the direction we must take. If we are to remain competitive, we have to keep pace with all our competitors, including people in the Silicon Valley or down around San Diego, where the biotechnology industry is really buoyant. Irrespective of where our competitors are, we must do the research here.

I listened to Deputy Gogarty who obviously has an interest in this whole area and he emphasised exactly the same point – that we must try to encourage these people to stay at home and make their contribution to this country. I have some first hand experience of how research into food products can create a very vibrant company. I live very close to Kerry Ingredients which has a special unit attached to its manufacturing plant in Listowel. It is in that little unit that they have researched most of their 10,000 product lines. I marvel at that little prefab unit in which the company has done most of its research into food ingredients. It is the biggest food ingredients speciality producer in the world and continues to grow because from the very beginning, it put an emphasis on scientific research from which it is now benefiting.

I know this issue is in the Minister of State's hands. From speaking to him about science in the past, I know he has a very active and genuine interest in this area and I wish him the best in implementing the Bill's provisions.

I thank all the Members of the House for their valuable contributions. I was here all day and the debate was an excellent one. I appreciate the support from all sides of the House for the establishment of Science Foundation Ireland.

I shall address some of the points made during the debate. About ten years ago, around 1992 and 1993, I was a Minister of State with responsibility for science and technology, and the first real investment in research and development came about at that time. I hasten to add that it was not really I who started it but I happened to be in situ at the time. Programmes were put in place then for advanced technology. The investment was mainly aimed at that stage in research and development in industry, and it drove a lot of the development of the last ten to 15 years.

I am glad to be here on behalf of the Tánaiste and Minister for Enterprise, Trade and Employment to reply to the debate that has taken place on the setting up Science Foundation Ireland, which is vitally important for the next phase of our industrial development. During the course of the debate, Deputies Hogan and Howlin referred to intellectual property and patenting issues. Intellectual property will be an important output of the research funded by the foundation but the most important output will be the quality of the people attracted, engaged and developed.

Science Foundation Ireland has developed detailed terms and conditions which attach to its grants. These outline clearly the conditions which apply in relation to the ownership and commercialisation of intellectual property. It would not be appropriate to copperfasten these terms and conditions in legislation as that level of detail is more appropriately determined by the board to be appointed. Flexibility is also required to take advantage of new opportunities as they arise. The terms and conditions provide that ownership of intellectual property resulting from a research programme shall be vested in the research body subject to compliance by the body with the requirements of the foundation.

In the event that, resulting from the project, intellectual property exists which could be exploited or commercialised, the research body shall share equally with the foundation all royalties, equity participation and other returns accruing to the research body regarding the exploitation and management of the intellectual property after costs and other necessary deductions are made. Commercialisation of intellectual property is an important issue for Ireland. A working group under the aegis of the Irish Council for Science Technology and Innovation, ICSTI, has examined the issue and recently published a statement. The group concluded that a legislative approach was not necessary in Ireland at this time. Work is recommended, and is progressing, on a code of best practice on the subject. Enterprise Ireland, with IDA Ireland, SFI, Forfás, the Higher Education Authority and Health Research Board also has a project under way designed to strengthen the commercialisation structures in research performers, primarily the universities and institutes of technology.

A number of Deputies expressed concern about the ethical aspects of science, such as stem cell research. I would emphasise that any research undertaken in Ireland must comply with Article 40.3.3º of the Constitution which states: "The State acknowledges the right to life of the unborn and, with due regard to the equal right to life of the mother, guarantees in its laws to respect, and, as far as practicable, by its laws to defend and vindicate that right." Science Foundation Ireland will operate to the highest ethical standards and has adopted the code applied by the long-established Health Research Board in this regard. Legislating for these issues would not be appropriate to this Bill Any legislation would be much broader and would have to apply to all areas where ethical issues arise and deal with ethical standards generally.

The Minister for Health and Children has a lead role with regard to ethics in the areas referred to by Deputy John Bruton and others and, in March 200, established the Commission on Assisted Human Reproduction to, "prepare a report on the possible approaches to the regulation of all areas of assisted human reproduction and the social, ethical and legal factors to be taken into account when determining public policy in this area." It is expected that this autumn, the commission will publish its report on the possible approaches to regulation in this area. Its report should provide the basis for informing public debate prior to the finalisation of any policy proposals.

In addition, the Irish Council for Bioethics was established in 2002 as an independent body under the auspices of the Royal Irish Academy to consider the ethical issues raised by developments in biotechnology. The council will identify and interpret the ethical questions raised by biological and medical research in order to respond to, and anticipate, questions of substantive concern. It will investigate and report on such questions in the interests of promoting public understanding, informed discussion and education and will stimulate discussion through conferences, workshops, lectures, published reports and, where appropriate, suggested guidelines.

Deputy Howlin queried the status of the Health Research Board as regards the foundation. It is important in the transition to a knowledge-based economy that the links between all research bodies, education institutions, academia and industry are fostered and strengthened. In a small country with limited and scarce resources, such collaboration will be important moving forward. This issue is well recognised in the constituent elements of the scientific and research community in Ireland. For example, SFI makes every effort to work in partnership with other research funding agencies and all third level institutions to raise the quality and increase the amount of research undertaken.

The necessity to ensure ongoing funding for SFI was stressed. The funding allocated to the foundation for 2003 is €70 million and is double that for 2002. This was done in the context of a reduction in overall spending by my Department. Building capability in research and development is a priority which has to be supported consistently and in the long-term. In response to a query by Deputy Howlin, to date, €59 million has been drawn down by the foundation. As a new entity establishing new programmes never before implemented in Ireland, it was important to take some time to develop the best models which will ensure excellence in funded research. SFI grants will only be rewarded where the projects are of a sufficiently high quality.

Reference was made to the importance of the institutes of technology. I am supportive of them and their role in regional development and linking research closely with industry. Through Enterprise Ireland, over €22 million has been allocated to build up the research capabilities in the institutes of technology, in particular, through the establishment of incubation facilities. Research projects from institutes of technology are, of course, eligible to apply for SFI funding, provided they are of the required high standard. Indeed, institutes of technology in Dublin, Cork and Waterford have already been awarded funding by SFI.

Deputy John Bruton queried the statutory basis on which the foundation was set up in 2000. Section 19 of the Industrial Development Act 1993, as amended by section 46 of the Industrial Development (Enterprise Ireland) Act 1998, provides that the board of Forfás may establish committees to assist and advise it regarding the performance of any of its functions. Section 10 also allows the board to delegate to a committee any of its functions which, in its opinion, can be better or more conveniently exercised or performed by a committee. Science Foundation Ireland was established as a committee of Forfás pending the enactment of specific legislation to establish the foundation as a separate legal entity, and Forfás delegated authority to the foundation to administer research grants.

Deputy John Bruton and Deputy Enright referred to the accountability of SFI and the content of its annual report. The foundation will be open and transparent in all its activities. Section 14(3) provides that the director general, if requested, will account for the performance of the foundation to any Oireachtas committee and will have regard for any recommendation made by that committee.

Deputy Upton stressed the need for an equitable balance between men and women on the board. There is a Government guideline to the effect that State boards should have 40% representation of women and we do our utmost to ensure that women are well represented on such boards. The Minister will take the views expressed into account in selecting the best available individuals to serve on this important board.

Deputy Upton also queried whether the director general should be a member of the board. The provision that the director general should be a member of the board is in line with other industrial development legislation establishing Forfás, Enterprise Ireland and IDA Ireland. As with any other issue, where a conflict of interest might arise with a board member relating to the topic to be discussed, the director general can absent him or her from that discussion.

A number of Deputies spoke of the importance of making science attractive to students and providing careers for science graduates. The decline in numbers attracted to science subjects in the education system is a cause of great concern. Our competitive position is now threatened by the decline in the take-up of science subjects at both second and third level. The availability of a young educated workforce with the necessary skills has been central to our recent economic success. As Ireland becomes less of a low cost location in the coming years, we must ensure that our skills base is rich in technological, scientific, and research capability. The Government has sought to address the issues surrounding skills supply through the establishment of the expert group on future skills needs and the task force on the physical sciences. The task force has recommended that all the science promotional activities, including the science technology and innovation awareness programme run by Forfás on behalf of my Department, should be drawn together to maximise effectiveness. My Department supports this proposal and, with Forfás, is working to progress the issue over the coming months.

Deputy Carey referred to the need for the interactive science centre. We are fully committed to the establishment of a science centre, as set out in An Agreed Programme for Government. It is important to making science interesting and attractive for young people. My Department has received a proposal from a number of interested parties seeking funding for the establishment of a science centre and these are being examined at present. However, there are significant cost implications associated with the establishment of such a centre which require particular consideration in the current economic climate.

One of the foundation's roles is to develop the human talent that drives discovery, innovation and prosperity. The foundation will work with its fellow Irish research funding agencies to invest in national and regional facilities that ensure productive and globally-competitive research environments. Such investment will not only advance Ireland's science and engineering capacities, but will also help develop, retain and attract highly-skilled researchers. The support of SFI will enable research careers to be realistic and rewarding choices and thereby help attract the best students to science.

Deputy Eamon Ryan queried why the emphasis is on the economy and suggested that the remit should be broadened to include environment, ecology and society. A small economy such as Ireland's cannot invest without limit in all areas of research, technology and innovation. ICSTI's technology foresight report concluded that spending should focus on those areas that can contribute most to Ireland's long-term economic development. It stated that this could be achieved by investing in research and development personnel of world class research excellence at the critical mass required to give Ireland an international reputation in selected technological niches and, in particular, in information and communication technologies and biotechnology. However, while the foundation will concentrate on these areas initially, there is provision in section 7 of the Bill for the Minister to prescribe other areas that concern economic and social benefit, long-term industrial competitiveness or environmentally sustained development, should this become necessary in the future. This is designed to allow future technology foresight exercises or evolving circumstances to redirect the key focus of the foundation in the future.

Deputy Eoin Ryan suggested a tax credit system such as that in the UK. The possibility of a research and development tax credit is under discussion with the Department of Finance and the Minister, Mr. McCreevy, referred to this issue when speaking on the Finance Bill earlier this year. Deputy Morgan stressed the need for indigenous companies to get involved in research and development and I fully agree with the Deputy that our long-term prosperity and continued growth depends on our indigenous companies. We must increase the number of companies performing effective research and development and embed a research and development culture in companies. The pace of technological change is continuing to accelerate. Companies must continually develop new products and find new markets if they are to keep up. Support is available through Enterprise Ireland and the IDA to firms to help them to develop innovative products, services and processes and encourage them to access and exploit research and development and technology from international sources.

Among these programmes are the RTI initiative, which supports high quality speculative research and development projects within SMEs and the research and development capability scheme which supports large scale investment to build up the research and development infrastructure, both human and capital, within new and existing firms. We must change from being an economy which produces goods and services based on ideas and knowledge generated elsewhere to one which generates knowledge and innovative ideas from investment in our own research. This can be achieved both by attracting creative individuals with advanced research experience in the fields of ICT and biotechnology to Ireland, and by fostering home-grown talent.

Deputy Crowe raised a question about an all-Ireland dimension. Researchers from all over the world, including Northern Ireland, may be funded by SFI which is already collaborating with institutions such as Queen's University Belfast, and whose present board has one member from Northern Ireland. The Deputy also raised questions about SFI's activities. I can assure him that these will be closely monitored by the Department and a report on the foundation's activities covering the projects being funded will be laid before the House each year. A report on activities to date will be published next week.

Deputy Harkin raised the issue of promoting top class research in the regions. A total of €19.5 million has already been granted to NUI, Galway. Deputy Crawford raised a question about the accountability of the director general and I have already referred to that in dealing with Deputy Enright's question. Deputy Twomey asked about ownership of intellectual property and commercialisation and I have referred to those issues earlier in my speech. In today's economy natural resources, cheap labour or capital stock are not as important to national comparative advantage as innovation built on new ideas and new knowledge. Government investment is aimed at building up that comparative advantage. We do not underestimate the challenge that is facing the foundation and we have faced such challenges in the past when we first began to attract high technology investment. The intention now is to develop a research environment that will compete with the best in the world in the strategic niche areas. I am confident that the foundation has the experience and the drive that will enable it to meet the challenges this new era presents.

As Deputy Deenihan has rightly pointed out, the Kerry Group has proved that research and development pays and I can put in a plug for my own constituency, which is also that of the Acting Chairman, Deputy Sherlock, where there is a similar research and development area in Moorepark in Fermoy which has proved successful. SFI will bring about the results that will continue the growth and development of this economy. I commend the Bill to the House.

Question put and agreed to.
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