As I was saying last night, we are fortunate in the number and calibre of the institutions concerned with research. Perhaps we do not appreciate fully the rich tradition we have in this matter and the many recent and excellent bodies which have been established. We have, in the RDS, founded in 1731, one of the leading scientific and technological bodies in the world, which has contributed a great deal not only to this country but, by its example, to many countries throughout the world. It may, perhaps, be interesting to recollect that it was founded for the purpose of the advancement of agriculture and other branches of industry, and the advancement of the fine arts.
Those of us who have had any connection with agriculture will know that in many ways it is a way of life. At the same time, it is very much an industry, and agri-business is now very big business indeed, and rightly so, and rightly recognised as such.
I am glad to say that it is more than 200 years or so since the RDS coupled agriculture with other branches of industry. We should do this today as well. A small point regarding the RDS is that it at one time occupied this building. Now, in 1977, the RDS is still playing a major part in the development of industry as well as other aspects of industry. Another body mentioned earlier in the debate is the Royal Irish Academy also founded a long time ago, in 1785, by James Caulfield, Earl of Charlemont, who is perhaps better known in Irish historical works as the Volunteer Earl. His greater longest lasting contribution to Irish life was the foundation of the Royal Irish Academy. It was founded for the promotion of the study of science and the humanities. It has ably carried on that study right through to the present day. I am not a member of it but I am a member of one of its many national committees which play a major role in the development of science in this country. The activities of the Royal Irish Academy should continue to be supported and encouraged by the Government and this new body should not supplant or supersede the activities of the Academy. I am sure that it will not. There is plenty of room for both organisations. These ancient and worthwhile bodies were set up in this country and are still active today.
There was a long pause before any other worthwhile scientific body was established. In the early forties the Dublin Institute for Advanced Studies was established with its various divisions of theoretical physics and of astronomy at Dunsink. That is another area of science and technology in which we have played a major role, perhaps an unappreciated role. The work of Hamilton, and the elder Parsons, the various telescopes and so on developed in this country provided a fundamental basis in astronomy and this good work is still being carried on despite many difficulties. Then there is the distinguished in cosmic rays. More recently there has been work in geophysics in which one area is of crucial importance and recognised as such, that is, the Continental Shelf structure. This is fundamental and important research with enormous implications for this country particularly and for the world generally.
Since the Second World War we have established a number of bodies, the largest of which is the Institute for Industrial Research and Standards. It now plays a major role in our industrial development and in research and has the great advantage of being mostly disciplinary. This is particularly important in view of the small size of most of our university scientific departments. The institute has played a particular role in the development of new industry and new products. An Foras Forbartha and The National Institute for Physical Planning and Development deal with divisions of planning, construction, roads and water resources. They also continue to play a major role in a comprehensive range of research projects. Two of the most important projects they are engaged in — and there have been many important ones connected with An Foras Forbartha — are the national coastline survey and the national ports survey. Another very important body is the Agricultural Institute with their seven major research centres throughout the country. They are concentrating on applied research, although there is a lot of basic research going on in their centres. The institute have a major role in agriculture. In addition to research concerned with cattle, sheep, horticulture and soil surveys, they also have centres concerned with agricultural engineering, for example, with economics and rural welfare.
Another important body is the Economic and Social Research Institute. As one of the previous speakers said, we cannot separate economic and social matters. They integrate and blend with one another. Indeed, the Economic and Social Research Institute have carried out some very important and worthwhile surveys on manpower studies on the cattle and beef industry, our offshore potential strategy and regional studies. We think of the IDA solely in terms of attracting industry to this country. In fact, the IDA also play a major role in research and in deciding which industrial research projects should be supported or initiated. The staff of the IDA either alone or in conjunction with some of the other bodies, do a great deal of very practical applied research in relation to industry. There is a research and development committee on which the IDA are represented together with the National Science Council, Córas Tráchtála, the Department of Industry, Commerce and Energy and other bodies. We should not forget other agencies such as the Geological Survey, which was established a long time ago, in 1826. The Meteorological Office is another important body. I am very glad to see that the Geological Office staff are being increased. They have done important work on mapping, on geophysical surveys, marine geology, on geochemical trace analysis, and a number of other matters which are obviously going to be of tremendous importance. Perhaps the most important of all is their value in the assessment of the vast mass of data which is now coming in from offshore exploration.
I understand that the number of geophysicists in State employment is being increased. This is absolutely necessary when we realise that, even in relatively small oil exploration companies, a large number of personnel with various skills are employed. If we are really to understand the findings and results which are now coming in from totally new areas in the Irish offshore waters, it is essential that we have adequate staff and back-up facilities to analyse this information.
In this country there are already many very important research bodies, many of them already directly involved in research and development of an economic or business nature or related to it. All of these bodies will presumably be liaising with the new board.
Nonetheless, it is fair to say that the amount of money and attention we have devoted to research and development has been inadequate in the past. We are now entering into an exciting new era. Not only have we rich natural agricultural resources, which we have been aware of for years and from which we are now beginning to get the full benefit and have the potential to develop, but we now realise that we have extensive mineral resources. There are enormous prospects as regards marine resources.
Several times so far I have referred to Ireland as a small country and to some extent this is to be regarded as historical rather in the past tense. We do not fully realise the extent of the global surplus which this country now has under its jurisdiction. It includes the Continental Shelf. We have an extensive area and key area in Western Europe. We are entering into the era when we will be in a very different economic position from that which has been the situation hitherto.
It is, however, important that these resources be developed to our benefit and this board is absolutely essential in this respect. All too often the benefits of our agricultural resource have been removed elsewhere. The technologies involved have been developed or employed elsewhere. It is absolutely essential that we develop agricultural technology to a greater extent. For these new resources which are becoming available we should make sure that we are in a situation to develop the technologies so that the benefits will come to us. As this is a national matter it is very heartening that the Bill is being supported by all parties.
In his introductory speech the Minister mentioned the various forms of research. In the past when we talked about research or science we have confined thoughts to pure research and have not fully realised that applied research, as the Minister rightly said, is the dissemination of information about applied research and is really part of the one matter: science and technology. There is no way here in which we are going to make a major contribution over a wide field in pure research. We do not have the infrastructure, we do not have the necessary finances and we do not have the personnel. Nonetheless, in certain selected areas it is possible for us to make a contribution. We have done so in the past and I sincerely hope that we will continue to do so in the future. But that is no reason why we should not make far greater use of the knowledge that is obtained elsewhere, which is readily available from applied research, and why we should not to a greater extent take part in applied research. This is absolutely essential if we are to maintain ourselves as a developed country. We have got to know what is going on and we have got to be among the first to apply the benefits of research. We do not have many other advantages.
I have mentioned our natural resources but we have a relatively small population, and have not, as yet, a large financial base. It is important that we emphasise quality rather than quantity and that we get in early on industries which are going to develop rather than make the dreadful mistake which has been made in the UK and elsewhere of endeavouring to support declining industries at greater and greater cost to less and less effect.
We must get in on industries which are going to be the industries of the future or which have a long-term future. Therefore, the necessity arises for a co-ordinated approach to the dissemination of information, to the development of applied research, to the encouragement of pure research and to the co-ordination of this research between the universities and other academic institutions — the research institutions, the Government Department and industry. In this respect I welcome the Minister's new Department. If we are to get the benefits of applied research on any sort of long-term basis, it is essential that we have a new Department such as we now have, repesented by the Minister, so that we can plan just that little bit ahead which is absolutely essential if we are really to derive full benefits from new projects.
One of the major suggestions of the OECD was the provision of a science budget and I am delighted to see that we are going to have a science budget. We should first of all consider the figures in so far as they are available. One of the immediate advantages of having a science budget is that we will have brought together to a large extent the actual figures for expenditure on research and science. It is essential that we have this knowledge if we are to have any serious part to play in planning our development and research on any sort of co-ordinated basis. Dermot Murphy and Michael Fitz-Gerald, under the auspices of the National Science Council, did some very interesting work on the expenditure on research and development by various industrial groups. These figures showed that in 1971 the food and drink industry was responsible for over 20 per cent of research and development expenditure. In other words, it was by far the major sector for R and D expenditure. Trailing a long way behind was the chemical industry at approximately 10 per cent, including chemicals, pharmaceuticals and so on, and the various electronic industries. Between these three sectors no less than 40 per cent of our research and development budget was spent in 1971.
It is interesting that this very high percentage, which is double that of any other sector, should be spent on food and drink. It is one of the obvious characteristics of developing rather than developed countries. A major percentage of their R and D is spent on agriculture or agriculture-related industries. We see the same pattern here. In 1969 an even greater percentage was spent on R and D in the food and drinks industry. It was then as high as 28 per cent of the entire research and development budget of industry, Government and the various other components of R and D expenditure.
Another very interesting facet of our information regarding expenditure by Irish industries in research and development is that in 1969 four companies alone accounted for 41 per cent of our expenditure. The first eight companies accounted for over 51 per cent of our entire industrial R and D expenditure. That pattern has improved since then by 71 per cent. It had fallen to 31.8 per cent for the first four and 42 per cent for the first eight. It is accounted for by an increase in research and development expenditure by smaller companies and by some of the other major groups coming into this country.
However, we must put these figures in the context of expenditure by relatively small developed countries. These figures are not easy to get on a comparative basis, but if we were to compare them with the figures for Scandinavia, Finland, Norway, Sweden and Denmark, we find that their electrical industry spend 3 to 10 per cent of added value on research and development. That compares with less than 1 per cent of added value here, despite the fact that the electrical industry was the third highest spender. If we take the second highest spender, the chemical industry, we find that research development in Ireland was at 1.5 per cent of added value. In Scandinavian countries it was as high as 15 per cent.
The characteristic of developing countries is relatively high R and D expenditure on food-related industries or agriculture itself. We were spending something in the region of .25 per cent of added value as compared with .5 to .7 per cent in Scandinavian countries. Even in the food and drink and agriculture-related industries we were spending far less on research and development than other comparable countries. We must be careful of any suggestion that research and development expenditure on agriculture should be curtailed in any way in Ireland because it forms such a high proportion of the budgets in developing countries. If anything, it should be greatly increased, perhaps not percentage-wise to such a great degree.
In 1971 the gross expenditure on research and development in Ireland was in the region of £14.3 million, of which £1 million was on social research. This was an increase over the 1969 figure of less than £10 million spent on research and development. As one might expect, the greatest source was 48 per cent from Government funds. The largest spender, as one might again expect, was the Government with 45 per cent. Sixty per cent was going on agricultural industry and only 19 per cent on all other combined industries. This shows a severe and unwelcome imbalance. I would hope that, with our new science budget, we will be able to have the figures to examine and then take the necessary corrective action. I regard expenditure on research and development as expenditure of a seed corn nature. We need to spend a great deal more but not in a casual way. We will have to be very selective with such expenditure.
The composition of the new board is going to be extremely important. The numbers on it are less than those on the National Science Council, presumably, in the interests of efficiency and so on. It is probably a good thing, particularly since the body will be backed up by appropriate committees reporting to it. It is important that the person appointed chairman of that board be a suitable person. He will fulfil a key role in the economy, and in Irish life generally. We have been fortunate to have had Professor Ó hEocha as chairman of the National Science Council. He is an able person who took a great interest in the work of the council. It is quite right that the board should be under the auspices of the Minister, as suggested, rather than under the auspices of the Department of Education. Nonetheless, there must be an extremely close liaison with the Department of Education.
We want to develop our research and development and part of that must be the human factor and the education of the appropriate people. Here I differ slightly from Senator Mulcahy. He seemed surprised that someone coming from a farming background should adapt so readily to a high-grade technological industry. I am sure the Leas-Cheann Comhairle is aware that anyone concerned with a small farm has to deal with a wide range of technological problems at very short notice and show a great deal of initiative. One of the advantages we have in this country is our farming background. The people concerned are often excellent from the point of view of new technological industries. I am not in the least surprised that someone of such a nature was able to join a major United States firm and within a few years suggest improvements in techniques which were above those being used in the U.S. We have enormous potential here which I hope we will not lose. Our industries are such that innovation will be rewarded. It would be dreadful if these skills, built up over so many generations, were lost in the forms of industry in which you have a monotonous line progress in which the individual worker just turns a bolt.
The relationship with the Department of Education is very important. Senator Staunton referred to the emphasis on the arts in this country. It is true that many people are studying medicine, law and other traditional arts-oriented disciplines. We have a long tradition in engineering. Unfortunately, many engineers had to emigrate to gain employment. We must be very careful about any sudden untoward emphasis on scientific or technological education unless it is very closely geared to the research and development of industries. I hope there will be close liaison with the Department of Education, with the universities and other institutes of higher learning.
I cannot finish without paying tribute to the work of the National Science Council, Professor Ó hEocha, Dr. Neilson, the Secretary General, the members of the board who give a lot of time and trouble, the staff of the council and all those who have contributed to its very excellent work. A very interesting paper on science and technology was produced under the auspices of the National Science Council by Charles Cooper and Noel Whelan. I agree with the general trends of their review, but modifying them slightly to suggest that we should have a general encouragement of research and development with a larger budget diverted towards it; that research and development in agriculture must remain a vital part of our national effort. It should be greatly increased, at least doubled. This does not mean that we should not emphasise other areas. There will need to be even greater emphasis on the food processing industries, and support those industries which have prospects for growth.
We should be very careful that we do not encourage capital-intensive industries in which the actual benefit or knowledge of the research and technology will not become available here. Such industries are as bad if not worse than labour-intensive industries with poor prospects. We must try to encourage foreign industries which are in growth areas, and in which research and technology will become available and will be mainly developed here. In that context, it is necessary that we should play our part and be prepared to spend money, but we should be very selective in our encouragement of foreign industry. It is absolutely essential but let us be very clear on what we are doing and think all the time of the quality of the technology and the prospects of the industry.
This is a rather abstruse and technical sounding Bill but it is one of the most important and useful Bills to come before this House. It is going to provide a key part in the infrastructure upon which our future economic and, indeed, social and cultural development will be based.
