The Minister for Industry and Commerce is unexpectedly engaged in the Dáil on his Estimate and has asked me to take the Second Stage of this Bill for him.
The Bill is the result of a review which I have had carried out with a view to ascertaining what changes were required in the legislation dealing with the Institute for Industrial Research and Standards. The original legislation under which the Institute was established was enacted in 1946, and an amending Act was passed in 1954. As it is now fifteen years since the original Act was passed, it is not, perhaps, surprising that it has been found necessary to amend the existing legislation. This Bill is designed to overhaul the functions, powers and organisation of the Institute so as to enable it to function more effectively.
Perhaps, the most important change proposed in the Bill is that relating to the organisation of what might be described as the governing body of the Institute. Senators will be aware that the Institute's functions under the 1946 and 1954 Acts were discharged by several constituent organs, namely, the Industrial Research Committee, the Standards Committee, the Director and the Council. The Bill provides for the concentration of functions in the hands of a single entity in the form of a Board which is to be established. This simplification in the organisation of the Institute is designed to improve its efficiency. The Board will be responsible for the general government of the Institute and the administration of its affairs, and it will operate in much the same way as the Board of Directors of a company. It will be appointed by the Minister for Industry and Commerce and will consist of a maximum of nine members.
Senators will recall that it had been hoped to keep industry in close touch with the work of the Institute through the Council, which comprises in addition to the members of the Industrial Research Committee and of the Standards Committee, not more than fifty ordinary members, who are appointed for their special attainments in this sphere. In passing I should like to pay a tribute here to the members of the present and past Councils for the selfless service they have rendered. The rôle of the Council was a useful one in the formative years of the Institute, though the results achieved were, perhaps, more modest than we had hoped for. Under the new developments which are proposed there will no longer be a need for a Council, and, arrangements are being made to discontinue its functions. Instead, the new Board is being given authority to appoint such ad hoc Committees as it sees fit to assist and advise it in carrying out its functions. The revised arrangements now proposed should have the effect of introducing greater flexibility into the conduct of the Institute's affairs, of broadening the base of the Institute, and of giving it more latitude in determining the appropriate industrial and scientific contact which should be enlisted to help towards the solution of specific problems.
The functions of the reconstituted Institute will be, broadly, similar to those of the present Institute. It is proposed, however, to vest the Institute with authority, where the public interest so requires, to undertake or assist in the development or exploitation of inventions. It is felt that this would be a desirable extension of the existing powers of the Institute in relation to scientific research.
Under present legislation, the maximum annual grant from funds provided by the Oireachtas which may be made to the Institute for expenses of administration is £35,000. It is proposed to remove this limit, and to arrange that, each year, the Minister for Industry and Commerce, with the concurrence of the Minister for Finance, will propose in the Estimates, for approval by the Oireachtas of whatever amounts are required to meet the capital or current expenditure. With the expansion of industrial enterprise in this country, with the greater awareness which we may expect from industrialists of the necessity for a scientific approach to problems relating to production, we may anticipate an increase in the demands likely to be made on the services of the Institute in the future. Three new laboratories have recently been completed and handed over to the Institute. The removal of the statutory limit on the level of the annual State grant should ensure that the Institute will not be prevented by lack of funds from using the new laboratories to the best possible advantage.
This greater flexibility in regard to financial matters should I feel be accompanied by similar flexibility in regard to staffing arrangements. At present, the numbers, grades, remuneration and conditions of service of the staff are subject to the approval of the Minister for Industry and Commerce, given with the consent of the Minister for Finance. The new Bill is designed to remove this control, except for such posts in the Institute's service as are designated by the Minister for Industry and Commerce as posts of special responsibility. The change proposed will, it is hoped, make it easier for the Institute to recruit suitable personnel for the various posts in the organisation. The number of posts likely to be designated as special posts will be very few— perhaps one or two. The posts equivalent to Chief Scientific officer or chief administration officer may be ones which I will designate.
The connection between the Institute and industry which it was created to serve should be as intimate as possible. Towards this end, provision is made in the Bill whereby industrial firms and other bodies may become associated with the Institute on payment of an annual fee, in return for which they can become entitled to certain facilities from the Institute. The exact terms of the relationship which will thus be created between the Institute and the associated firms will be a matter to be worked out by the Institute.
In regard to standard marks, the Bill provides that certain functions, which are at present exercised by the Minister for Industry and Commerce, are transferred to the Institute, and some other minor amendments which appear desirable in the light of experience, are also proposed. The most important change in this respect is that which empowers the Institute to grant a licence to use a standard mark. This is at present a function of the Minister for Industry and Commerce. I think, however, that it is advisable that the Institute should continue to prepare specifications on the basis of a programme and priority schedules established by the Minister for Industry and Commerce.
The Bill also provides for the prescription by the Minister for Industry and Commerce of compulsory standards for certain commodities intended for sale. In recent years, public attention has been focussed on the fact that there is no power to prevent the sale to the public of articles which may constitute a hazard to life or health. The provision to which I have referred seeks to remedy this deficiency, and it is the intention normally to utilise the powers involved only for the protection of life and health. There is no intention to make compulsory the ordinary standard specifications which will be drawn up by the Institute.
The Bill makes other provisions in regard to finances, accounts, and audits, annual reports, Board procedure, offices and premises, and other matters, which are generally on the lines of those approved by the Oireachtas for other State sponsored bodies.
In regard to the general merits of the Bill, I feel that there will be general agreement with a measure which is designed to improve the working of such a key establishment as the Instistute for Industrial Research and Standards. This Bill will, I believe, have this effect. The day has long gone when Industry could afford to carry on from year to year with the same old processes and practices, and in every country it is increasingly recognised that scientific research is essential to any worthwhile development of resources in the industrial field. This is more than ever important for this country which has limited natural resources, and the additional handicap, so far as human resources are concerned, of a lack of tradition in industrial and managerial skills. For this reason, there is a very urgent need for industrial research to improve technical processes and techniques, to develop new processes and new products, to promote the use of substitutes and byproducts, and to eliminate waste.
This research is expensive, and the smaller type of industrial firm which we have in this country is often not in a position to provide the skilled staff and the laboratory equipment needed to conduct research with a view to establishing newer, more efficient and cheaper ways of making a better article. The Institute exists as a central organisation to provide these facilities for industry. It has, or will have, the skilled staff and the equipment to do the job. I should like to see a greater awareness among industrialists firstly of the need for scientific research and secondly, of the great advantages which they can achieve from utilising the services which the Institute provides for them. This Bill represents an effort at improving the organisation of the Institute and giving it more independence with a view to improving its working and making it a better servant of industry.