Seanad Éireann debate -
Wednesday, 16 Jun 1999

Vol. 159 No. 16

Adjournment Matters. - Millennium Trust.

Dr. Henry

Earlier the Minister heard me state how long it takes to read reports. Reports are produced constantly and I sometimes feel we think that just because a report has been produced, something has been done. We have not done anything until we have attempted to implement the recommendations contained in the reports. I try to keep up with reports in the science and technology field in particular. The recommendations of the report on technology foresight, commissioned by Minister of State, Deputy Treacy, are excellent. However, unless we do something about them, the report will be absolutely useless.

The Scientific and Technological Education (Investment Fund) Bill was published last year. However, we have not yet seen a report on it. Section 50 of the 1995 Finance Act provided for tax relief on incremental expenditure for research and development. A report was supposed to be published on that after a period of three years but nothing has come of that. We are constantly talking about improving matters with regard to research and development and encouraging post-doctoral research. However, when we produce reports, we do not do anything about them.

Ireland is moving from a manufacturing based economy to a services and knowledge based economy. This morning, Intel announced it was moving 700 manufacturing jobs to a lower wage economy but promised to employ the staff in another capacity. This is just one example of the manner in which manufacturing jobs are being moved out of this country into lower wage economies.

The technology foresight exercise firmly points towards a prosperous technological future provided we maintain and improve our general standard of education. Science and technology is driving more than 60 per cent of our economic growth. In other words, it is producing 60 per cent of all new jobs, more than all other sectors combined. I frequently express concern that, in spite of our realisation of this, we take very little cognisance in education of many developments in the scientific sector.

I am sure the Minister was as concerned as I was to note that just over 7,000 students took physics and chemistry as leaving certificate subjects compared to a figure of between 10,000 and 12,000 a few years ago. We must examine this sector thoroughly to show people that we are really concerned about it. That is why I suggest the development of a millennium investment fund.

Jacques Delors, former President of the European Commission, once said that 80 per cent of all of the goods and services we will be using in 2010 have yet to be invented. Companies such as Siemens make the same point. We know that knowledge is the raw material of the next millennium and we have good human intellectual capital here. However, our competitors also have good brains and while we still think we will get handouts from Brussels, they are investing huge amounts of their own money in their future.

The United States invests 3.3 per cent of GDP in research. It is the richest country in the world and not without reason. Research at Stanford University has, in recent years, created in excess of one million jobs. The Massachusetts Institute of Technology has been even more successful. It has invested $1.2 billion in research in recent years. Finland and Denmark, real competitors for Ireland in the EU, invest just less than 3 per cent in research. The figure here is 1.1 per cent, the same as Turkey. At times, I feel this figure is exaggerated. An examination of the figure for a particular year revealed that part of it comprised the computerisation of the Department of Justice. How could that be included in the calculations on research and development? I am worried that this year we may find that the computerisation of the Garda Síochána will be included in the calculations. We really have a terribly low level of investment in this area.

I have a solution. We are obliged to change the status of our semi-State bodies as the State cannot be both owner and regulator. Telecom Éireann is the first body up for public flotation on the stock exchange. The media is currently speculating about the best use which can be made of the money and I have an answer to that question for the Minister for Finance. The best return from this money can be attained by investing in our future.

The proceeds of the Telecom Éireann sale – let us take a figure of approximately £5 billion – should be used to set up an investment fund which could be called the millennium investment fund. This fund would generate income which could be used to increase the fund and secure a permanent investment in the brain power of this country. The fund would work rather like the Wellcome Trust in the United Kingdom which invests more funds in biomedical research in this country than we do.

At present, we are unable to retain our best and brightest graduates. We educate them to degree level and then they go abroad to intellectually stimulating postgraduate posts. Other economies benefit from the research they carry out and create wealth producing technologies of the future to provide jobs for other people.

We need to think on a bigger scale and we need to think 20 years ahead. Our future wealth lies in strategic, fundamental research. Now that we have money coming into the economy, we should invest it in research. I would welcome the Minister's support in requesting the Minister for Finance to free up the Telecom Éireann money for the Department of Education and Science in order that this fund can be set up and we can invest in the intellectual capacity of the nation.

Minister for Education and Science (Mr. Martin)

I thank Senator Henry for raising the concept of the establishment of a millennium trust. From my perspective as Minister for Education and Science, there is no argument about the importance of knowledge and skills education and human capital. Knowledge and skills in the new millennium will be the basis for economic growth and progress and may represent the only durable base for economic and competitive advantage. The OECD and other international bodies argue that the priority given to education and the status within a society accorded to teachers and other education workers may be among the most important determinants of economic growth. Education will also serve as a means of advancing policy objectives in other areas such as social and cultural policy.

It is not surprising, given the multiple policy objectives, that education and the funding of education is an area of vigorous policy debate. If I were to summarise this Government's objective for education, I would say that we want more people to achieve a higher level at every level of the system, ranging from pre-school and primary to postgraduate work. This is predicated on the idea that high quality education is absolutely central both to promoting an inclusive society and developing a high skills, high pay and knowledge based economy. The priority is to provide resources where those resources are of most benefit to our students.

In the two years since the Government took office, there have been major breakthroughs in key policy areas in education and all levels are benefiting from significantly increased investment. Many issues which had remained unresolved for decades have been addressed and we have seen a definite movement on other issues which were often viewed as being intractable. There is much left to be done, but the Government and my Department are moving in the right direction and are doing so rapidly.

There are many challenges facing Irish education and perhaps the best way of summarising my approach to them is to say that we must be more inclusive and protect and promote quality for all. We have to target our resources and invest in the entire system. The basic approach which the Government has sought to follow on education since it took office is to deal quickly and comprehensively with important and long neglected issues while putting in place effective policy development to help deal with issues which require proper planning.

The Education Act, 1998, gave us the statutory framework to further develop education. It is not enough, however, to legislate; we have to do more. Real commitment and real resources are required to make a difference. After less than two years the gross budget provision of over £2.8 billion for education stands over 20 per cent higher than when we took office. The impact of these extra resources has been felt throughout the system.

The Senator raised the issue of using the proceeds of forthcoming privatisations to permanently endow the human intellectual infrastructure. She also raised the issue of the Scientific and Technological Education (Investment) Fund, a report on which was compiled and laid in the Oireachtas Library.

Dr. Henry

I must have missed it.

Mr. Martin

The fund contained £250 million and represented a sea-change in terms of investment in science and technology at all levels. Not all of this sum, which was additional to the sum contained in the Estimates, has been spent as it takes two to three years to complete a building project. The fund was subsequently increased to £280 million to facilitate a new research project which involved the investment of over £180 million.

While I accept the Senator's argument about the historical low level of State investment in research in particular, significant progress has been made. The investment of the £180 million has forced universities and institutes of technology to adopt a strategic approach in terms of their research objectives and has resulted in greater discipline in terms of how the institutions reflect on and analyse their processes and bring forward strategic objectives.

There is an objective framework to assess the submissions made by the respective institutions to draw down funds. We should be in a position within the next six weeks, once I receive the recommendations of the objective international panel, to allocate funds for the exciting research projects proposed. This represents a quantum leap from where we were and is not to say that more cannot be done.

The proceeds of privatisation tend to go to the Exchequer and there will be many competing demands. Further public-private sector partnerships in education are being looked at. We will be pitching for as much of the money as possible for education and the endowment of the human intellectual infrastructure. The largest capital programme ever at first, second and third level is now under way and the Department is finding it difficult to cope with the various projects proposed because of the doubling of the normal Estimates provision for capital projects.

The Senator referred to the technology foresight document. The issue of physics and chemistry in second level schools was analysed over one year ago. About three months ago I launched a major initiative to increase participation in physics and chemistry in second level schools. This involves a £15 million investment over the next three years in the sciences at second level encompassing comprehensive inservice training for science teachers, particularly those who majored in biology, to encourage more of them to become involved in the teaching of physics and chemistry at leaving certificate level. In addition, where a students opts for physics and chemistry the school will gain £10 in extra capitation payments. All existing laboratories in second level schools are to be refurbished. An inventory of such laboratories has been completed.

On the national development plan, the ESRI has made assessments of the investment priorities for the period 2000 to 2006. Among the main recommendations were that high priority be given to investment in human capital. High priority was also accorded to research and development as an aid to expanding the economy's productive capacity. This assessment is very encouraging as it picks up on many of the points that the Senator and I made earlier concerning the key role of education in future economic development.

I appreciate the points made by the Senator which are in line with what I want to see achieved. We will discuss the issue with the Minister for Finance. Whatever mechanism is agreed on, more funding should be made available for research, science and technology and education in general for the benefit of the nation.

Dr. Henry

I thank the Minister for his reply. I am well aware that he is committed to this area. Perhaps he should say to the Minister for Finance that there is a woman in the Seanad who thinks he should give him £5 billion for science and technology but that he would settle for £4 billion. We have to think big in this area.

The Seanad adjourned at 10.30 p.m. until 10.30 a.m. on Thursday, 17 June 1999.