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Thursday, 22 Nov 2012

Written Answers Nos. 24-33

National Internship Scheme Administration

Questions (24)

Michael Moynihan

Question:

24. Deputy Michael Moynihan asked the Minister for Jobs, Enterprise and Innovation the consultation he has had with the Department of Social Protection regarding the jobbridge scheme; his views on whether the current scheme is adequate in scale in the context of the jobs crisis; and if he will make a statement on the matter. [51855/12]

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Written answers

The JobBridge internship scheme is part of the Government’s approach to helping unemployed people to get back to work. The scheme falls within the responsibility of the Minister for Social Protection, Deputy Joan Burton.

The objective of JobBridge is to help those seeking employment to gain valuable work experience and enhance their prospects of securing employment. It is just one element of the Department of Social Protection's wider activation programme, under the Pathways to Work strategy.

JobBridge is overseen by a Steering Group chaired by Martin Murphy, CEO of Hewlett Packard, and involving a range of stakeholders. My Department is represented on the Steering Group and has been an active participant since the Group was established in May of last year.

A total of 5,000 places were provided for JobBridge on a rolling basis when it was launched in July 2011. A recent interim evaluation of the scheme by Indecon shows that more than half of the participants found employment following their participation on JobBridge. This evaluation confirmed the picture that had been emerging for the Steering Group on the basis of data on uptake and outcomes of the scheme.

Given the success of the scheme since its inception, Minister Burton announced an increase of 1,000 additional places on the scheme on 9th May last. This brings the total number of places available to 6,000. As of 15th November, there were 5,395 interns participating on the scheme, with a further 1,173 going through the approval process within the Department of Social Protection. There are currently 1,852 internship posts being advertised by host companies for applications from prospective interns, which are spread throughout the country.

Consideration of any further increases in the number of internship places available under the scheme is a matter for the Minister for Social Protection.

Job Creation Issues

Questions (25)

Martin Ferris

Question:

25. Deputy Martin Ferris asked the Minister for Jobs, Enterprise and Innovation the number of jobs announced by the Industrial Development Agency over the past five years and the total number of these additional and new jobs now in place. [51900/12]

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Written answers

Details of IDA Ireland’s investment announcements, including potential job numbers over the past 5 years, are available on the IDA website – www.idaireland.com. However, I should point out that some investment and job creation projects in client companies are not announced, for example, in cases where the company involved does not wish this to happen.

The Forfás Annual Employment Survey reports on job gains and losses in companies that are supported by the industrial development agencies. The number of new jobs created in IDA client companies in each of the years 2007 to 2011 is set out in a tabular statement. Figures for 2012 will not be available until the end of the year.

Table showing Number of Jobs created in IDA Supported Companies in each of the years 2007 to 2011 inclusive

Year

Number of new jobs created

2007

10,401

2008

9,203

2009

5,239

2010

9,075

2011

11,594

Business Regulation

Questions (26)

Seamus Kirk

Question:

26. Deputy Seamus Kirk asked the Minister for Jobs, Enterprise and Innovation the way he proposes to reduce costs for businesses; and if he will make a statement on the matter. [51850/12]

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Written answers

Some operating costs for business are largely outside the control of Government. For example, fuel and energy prices are primarily driven by external factors such as global fossil fuel prices. However, the Government’s approach has been to identify those areas of policy it can influence to bring about cost reductions or provide supports to business.

The Action Plan for Jobs 2012 includes an extensive range of measures across Government which will help to reduce costs and support job creation. These include:

- reforming the statutory wage setting mechanisms;

- reducing the administrative burden on business;

- placing downward pressure on insurance costs through the enactment of the Legal Services Bill;

- encouraging all professionals to supply quotes in advance to business customers;

- providing supports to businesses to improve their energy and resource costs;

- introducing a mechanism to allow small companies to apply to the Circuit Court, rather that the High Court, to have an Examiner appointed;

- encouraging local authorities to exercise restraint in the setting of commercial rates.

Updates on these, and all other commitments in the Action Plan for Jobs, are detailed in the Quarterly Progress Reports on the Plan which are available on my Department’s website, www.enterprise.gov.ie.

The most recent report published by the National Competitiveness Council (NCC), in July of this year - “Ireland's Competitiveness Scorecard” - acknowledged that improvements have taken place in Ireland’s cost competitiveness, particularly in relation to labour costs and property costs. However, the NCC also advised that Ireland must maintain focus and continue to reduce costs to business.

Further measures to achieve the structural reforms identified by the NCC to improve our competitiveness will be contained in the 2013 Action Plan for Jobs which I am currently preparing in consultation with my Government colleagues.

Visa Applications

Questions (27)

Catherine Murphy

Question:

27. Deputy Catherine Murphy asked the Minister for Jobs, Enterprise and Innovation if he is considering the introduction of a new, dedicated visa for citizens of other countries to come to Ireland to take up employment in the technology sector; if his Department has engaged in any research on the possible multiplier effect on domestic employment that such a facility might create; his views on the benefit to technology research and development here; if the introduction of such a model could be detrimental to the fostering of indigenous technology startups and discourage the takeup of related third-level courses and training by citizens; and if he will make a statement on the matter. [51868/12]

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Written answers

It is important to recognise the importance of the ICT sector in Ireland. Ireland is a successful major centre for ICT operations with nine of the top ten software companies in the world having substantial operations here. There are approximately 82,300 staff employed in the sector. Over the last year, there has been a 5% employment growth for companies engaged within computer programming, computer facilities management, ICT consultancy and ICT services activities. Employment within computer and electronic equipment manufacturing has also stabilised following an 18% decline over 2006-2009. Finally, the ICT sector accounts for 35% of total annual exports sales. This amounts to €60bn – of which €50bn is ICT software and ICT services and €10bn is ICT electronics, hardware and communications.

We all recognise that ICT, as a sector, will only grow in importance across the world. Ireland is not faced with making a choice between attracting ICT skills from abroad or developing ICT skills through its training and education systems. It can do both. It is certain that the ICT sector provides ample opportunity for Ireland and that there is likely to be excellent opportunities for ICT and other Science related graduates into the future. New ICT inward investments in Ireland are testimony to company confidence in Ireland as a strategic business location for a broad range of international activities. Ireland's inward investment proposition includes an availability of top quality talent and its technology base, as well as 12.5% corporation tax rate, 25% R&D tax credit and EU / Euro membership. The supply of high-level ICT skills is important in terms of meeting current demand and driving future demand, supporting new business growth and inward investment.

An increasing share of employment within the sector is being accounted for by people with high-level ICT skills. However, recruitment challenges have emerged and it is estimated that there are in excess of 1,500 job vacancies in the ICT sector. The Expert Group on Future Skills Needs (EGFSN) in its report “Addressing High–Level ICT Skills Recruitment Needs” (January 2012) has identified immediate skills needs at 8+ years’ experience and that while the recruitment of such experienced ICT professionals is smaller in number, it is linked to the additional hiring of a team of graduate and professional staff.

If the skills supply were available there is the potential for foreign companies to win more mobile investment within their group and for Irish companies to keep more of the work here rather than contract it out to their overseas offices, or outsource to third parties overseas.

Companies have indicated the need to plan five years out for the building up of the high–level ICT skills supply, both in terms of quantity and quality. While increasing the supply of high-level skills from domestic sources is the most sustainable way forward in the long term, in the short term, there continues to be a need to supplement Ireland’s skills stock through employment permits. Skills required in the high-tech sectors are in demand and in short supply globally and so Ireland has to compete with other countries for migrant labour, particularly in respect of high-level skills. One way is to ensure that Ireland’s employment permits system is geared towards attracting such skills.

The Department of Justice and Equality is responsible for the implementation of policy in relation to the admission of non-EEA nationals to the State and their residence in the State. There can be some confusion with regard to the term ‘IT Visa’ as it is suggestive of a visa-based immigration system. However, the employment permit regime provides for a managed system regarding entry to Ireland’s labour market as well as powers for enforcement of employment rights. Deputies will be only too aware that economic migrants are a vulnerable class of people. Any actions affecting inward economic migration should be cognisant of the need to ensure that such migrants are protected and made aware of their employment rights.

The employment permits regime is supporting the enterprise sector and significant levels of applications are successful particularly those based on high skills levels. My Department’s figures indicate:

- A reduction in total applications in line with economic circumstances, but an increase in Green Card applications, in line with a greater emphasis on high value skills;

- An increase in the proportion of applications in respect of ICT job roles with applications in respect of ICT job roles being more successful than the norm. Over 90% of ICT related applications are successful and over 1,200 ICT related applications have been approved so far this year.

Therefore, we should examine how the employment permits regime can be adjusted in order to facilitate attracting highly sought skills. My Department has reviewed its processes with a view to attracting more ICT related applications and is confident that significant improvements can be made shortly which will greatly enhance the employment permits regime to ensure growth is not hampered by skills shortages. Furthermore, the improvements will be of benefit to all companies, ranging from indigenous start-ups to large multinationals, in need of ICT skilled labour. The improvements will result in a more streamlined process and reduced waiting times.

It is also the Government’s ambition that Ireland should take advantage of the opportunities for employment in the ICT sector and that every opportunity is afforded to our graduates and unemployed to prepare them with the skills required to work in that sector. Employment permits are but one way of increasing the level of ICT skills available in the labour market and I am mindful that improvements in the regime must be done in a manner that does not undermine the work of my colleague the Minister for Education and Skills to increase domestic supply through our education system and targeting of the unemployed. In that regard, the Minister has already put in place plans to establish an overarching target of doubling the annual output from honours degree ICT undergraduate programmes to 2,000 graduates by 2018. These plans involve actions to:

- increase the domestic supply of honours degree graduates in the short term through expansion of conversion; and

- boost the longer term supply and quality of graduates from the higher education system.

Finally, work is also proceeding in my Department with regard to the preparation of new employment permits legislation which will provide for more flexibility and targeted instruments in support of the economy’s evolving skills needs. Heads of Bill were approved by Government last April and since then, my Department has been engaged with the Office of the Parliamentary Counsel in order to progress the drafting of the Bill.

Enterprise Support Services Provision

Questions (28)

Denis Naughten

Question:

28. Deputy Denis Naughten asked the Minister for Jobs, Enterprise and Innovation the steps he is taking to support enterprise development in the midland and western regions; and if he will make a statement on the matter. [51775/12]

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Written answers

Supporting new and existing indigenous and foreign-owned businesses, across all regions, is central to our plans for recovery, growth and jobs. The Action Plan for Jobs contains a number of measures which are aimed specifically at the facilitation and incentivisation of national enterprise development from start-ups to growth companies.

The Enterprise Development agencies are at the forefront of implementing the Action Plan for Jobs across all regions and continue to ensure that enterprises can maximise their contribution to economic recovery and jobs growth. IDA Ireland’s strategy document, entitled “Horizon 2020”, sets out the Agency’s targets for the period 2010 to 2014. These targets include the creation of 63,000 new jobs in Ireland during that period and a target of securing 50% of these investments to locations outside of Dublin and Cork. The agency has invested heavily in the provision of property solutions tailored to meet the requirements of investors and has developed a network of high-quality Business Parks in locations throughout the Midlands and Western Regions. There are a total of 120 IDA supported companies employing over 17,500 people between both regions reflecting the considerable success that has been achieved in attracting high quality investment to both regions.

A total of nearly €15m was paid to Enterprise Ireland client companies in the Midland and Western Regions in 2011, supporting more than 18,000 jobs. Of the 92 High Potential Start-ups assisted by Enterprise Ireland throughout the country in 2011, four are based in the Midlands region and eight in the West. As part of our support for early stage entrepreneurs, I announced an investment of €50,000 by Enterprise Ireland in each of four start-up companies in the West Region on 25 September 2012.

An Taoiseach announced a €200,000 Competitive Feasibility Fund for the West Region in September and a €200,000 Competitive Feasibility Fund for the Midlands Region in October 2012. Support of up to 50% of eligible expenditure up to €25,000 per project is available for entrepreneurs and early-stage companies in each Region. 22 applicants for CFF West have been invited to pitch to a panel of Industry Experts and Enterprise Ireland staff in November 2012.

Following Exporting Awareness Events last March and May in Athlone and Galway respectively, a further 'Get Export Ready' Workshop was held in Athlone in April, in Galway in June and July and an Export Awareness Event in Tullamore in October 2012. A representative from Enterprise Ireland made a presentation on Exporting at the ‘MeetWest 2012’ event on 20 and 21 November in Co. Roscommon and was available for one-to-one meetings afterwards.

Ireland's National Entrepreneur Programme - The New Frontiers EPP Programme - was launched in March 2012. This Programme provides a package of supports to help accelerate the development of start-up businesses and is being delivered by GMIT at the Galway and Castlebar Innovation Business Centres in the West and in Athlone Institute of Technology in the Midlands.

Community Enterprise Centres located in both regions were approved funding under the Community Enterprise Centre Business Development Funding Programme. This Programme supports funding for the creation of, or maintenance of, a business development function within the enterprise centres concerned. In April, I officially opened the Boyle Enterprise Centre which has received substantial funding from Enterprise Ireland and Roscommon County Enterprise Board.

Ensuring that more micro and small businesses can start up, expand and export is a key pillar of the Government’s plans for jobs and growth. That is why the Government has decided to implement an ambitious reform in the delivery of service to small and micro business. This will include the:

- Development of a new Small and Micro Business Division within Enterprise Ireland (EI) as a centre of excellence in the provision of supports to the small and micro enterprise sectors;

- Dissolution of the County and City Enterprise Boards (CEBs), and the transfer of their functions, assets and liabilities to Enterprise Ireland (EI);

- Establishment of Local Enterprise Offices (LEOs) to provide a high quality, innovative, “first-stop-shop” support service for small businesses within Local Authorities, and providing early access to the services of national bodies and,

- Integration of key local authority business services into the Local Enterprise Office and promotion of a local environment in which enterprise can thrive.

Pending the introduction of these proposed new arrangements, County and City Enterprise Boards (CEBs) in the Midlands and Western Regions will continue to ensure that available funds are targeted to maximise entrepreneurial development and engage and work with micro-enterprises employing less than 10 persons, on an on-going basis with strong referral to sister agencies to progress the needs of the businesses in their respective areas. So far this year, the CEBs in the Midlands and Western Regions have supported over 130 projects to the amount of €1,180,667.

Job Creation Issues

Questions (29)

Bernard Durkan

Question:

29. Deputy Bernard J. Durkan asked the Minister for Jobs, Enterprise and Innovation the extent to which job creation potential has been maximised under the heading of innovation and technology in each of the past three years to date; the number of such arising from indigenous enterprise; those arising through foreign direct investment; the extent of the incentives offered through Enterprise Ireland, the Industrial Development Agency or other bodies; the degree to which the search has been undertaken to ascertain the full potential under each heading; and if he will make a statement on the matter. [51816/12]

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Written answers

Innovation is a key enabler of job creation but it is extremely difficult to disaggregate the contribution made specifically by innovation towards overall job creation. Ireland is a small open economy which needs to have the export of goods and services at the heart of its economic strategy. In order for our companies to achieve success on the global market they must be innovative in order to acquire and maintain ongoing competitive advantage.

I have, through the Action Plan for Jobs, set out an approach which is focused on making economic recovery a reality: by delivering improvements in competitiveness; ensuring companies have access to the finance they need to grow and by prioritising innovation as a key driver of success which will lead to jobs growth.

The Action Plan for Jobs emphasises the importance of innovation and the use of technology as core drivers of job creation in Ireland’s key sectors during 2012, and seeks to maximise their impact in the coming years.

My Department and its agencies are focused on the development and support of internationally trading manufacturing and services firms in Ireland in this regard. Enterprise Ireland (EI) is focussed on the growth of world-class Irish companies to achieve strong positions in global markets and works directly with businesses, and the research and investment communities in Ireland to build sustainable competitive advantage for our economy. EI has a range of initiatives focusing on innovation which support businesses to compete sustainably in international markets, in the areas of Organisational and Management Development, Research and Development, Operations and Production, Finance and Investment, Business Strategy and Start-Up.

Manufacturing is the bed-rock on which the growth in Ireland’s FDI was founded. Mirroring the rest of our economy, manufacturing is also in transition. Higher technological investment and higher value products are the hallmark of future manufacturing operations in Ireland. In order to catalyse such changes, IDA Ireland, in conjunction with EI, is supporting an industry consortium approach on a range of applied research initiatives under the new Technology Centres programme.

Additionally, Ireland is now a successful services economy with two-thirds of the workforce engaged in services and we are the 10th highest exporter of services in the world (Source: Services Strategy Group Report, September 2008). Over recent years, services’ activities have accounted for an increasing level of overall IDA investment and Ireland provides a low-risk, quick start-up, high-performance, knowledge economy for service companies.

There are some 130,000 people directly employed in 1,004 IDA client companies and in 2011, the value of the foreign direct investment approvals achieved by the IDA that were research, development and innovation (RD&I) based amounted to €700m. Indeed, some 70% of business expenditure on R&D is accounted for by IDA client companies.

The European Commission’s Innovation Union Scoreboard published earlier this year shows Ireland retaining its position among those Member States with above average performance in their research and innovation systems. The scoreboard shows that Ireland has strengths in a number of areas including human resources, open, excellent and attractive research systems, and economic effects, which include employment in knowledge intensive activities and knowledge intensive service exports.

Ireland has substantial achievements in science over the past decade. We are now in the top 20 in the world for the quality of our scientific output, and in the top 10 globally in a number of specific areas such Immunology (3rd) and Materials Science (8th). The challenge now is to build on these achievements and take our performance to the next level, and that is what the reforms across our research system are aimed at achieving.

The Research Prioritisation Report has identified the areas of greatest potential commercial impact for Ireland. Implementation of the Report's recommendations will see the majority of competitive public research funding being aligned with 14 identified priority areas, where we are most likely to get economic and societal returns, most importantly in the form of jobs. A key economic goal in the implementation of Research Prioritisation will be a significantly enhanced focus on collaborative research with enterprise and on commercialisation by growing the number of researchers in enterprise and enhancing the flow of researchers between academia and enterprise.

Enterprise Ireland Investments

Questions (30)

Willie O'Dea

Question:

30. Deputy Willie O'Dea asked the Minister for Jobs, Enterprise and Innovation the progress that has been made on the women in business startup drive since the end of the application period in September; and if he will make a statement on the matter. [51862/12]

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Written answers

In line with the Governments Action Plan for Jobs 2012 Enterprise Ireland launched the Female Entrepreneurship Competitive Feasibility Fund in July 2012. Enterprise Ireland received 108 applications before the Fund closed on 4th September 2012. The assessment committee deemed the applications to be exceptional in terms of quality and potential and recommended that the top 20 applicants should be proposed to the Enterprise Ireland Investment Committee for approval. The Committee approved €342,450 in total to these applicants. In addition to the grant support, each of the 20 female entrepreneurs will have an Enterprise Ireland approved mentor appointed to them; they will become part of a network and attend a series of topic based workshops to assist the growth of their enterprises.

Enterprise Ireland launched their first female only equity fund ‘Competitive Start Fund for Female Entrepreneurs’ on 17th September 2012 and this Fund will close on 3rd December at 3pm. The purpose of the Competitive Start Fund for Female Entrepreneurs is to accelerate the growth of Female-led start-up companies that have the capability to succeed in global markets. Up to 10 companies are expected to benefit under this round of funding, and up to €500,000 is available.

Enterprise Ireland has sponsored numerous awards to raise the profile of female entrepreneurship and support the development of female role models for aspiring entrepreneurs.

Enterprise Support Services Provision

Questions (31)

John Browne

Question:

31. Deputy John Browne asked the Minister for Jobs, Enterprise and Innovation the way he proposed to help startups in the healthcare sector; and if he will make a statement on the matter. [51839/12]

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Written answers

Enterprise Ireland works intensively with high potential start-ups to drive growth and has in place a number of supports to assist entrepreneurs and new start-up companies including those in the healthcare sector. Enterprise Ireland’s financial support directly assists entrepreneurs and leverages matching funding from banks and investors.

In addition to financial supports, Enterprise Ireland have a broad system which supports entrepreneurs in their efforts to set up internationally focused, innovative companies with significant job creation potential. These include a range of workshops, seminars and training courses for entrepreneurs designed to aid the development of their business plans, and assist them in the process of getting their companies off the ground.

In relation to healthcare start-ups specifically, the Government is committed, as outlined in Action 7.2.1 of the Action Plan for Jobs 2012, to deliver a Health Innovation Hub to drive collaboration between the health system and commercial enterprises leading to the development and commercialisation of new healthcare technologies, products, services and start-ups emerging from within the health system and/or firms.

In October, together with Minister for Health Dr James Reilly, I launched a Demonstrator Project for the Health Innovation Hub at University College Cork. The Health Innovation Hub seeks to harness Ireland’s vibrant Life Science industrial and clinical base by securing health system participation in driving commercialisation pathways for innovative health related products and services and contributing to the health service transformation agenda. Healthcare, which is a key global market, requires innovation derived from clinical involvement with healthcare professionals and testing and validation in real world clinical settings to create exportable platforms.

The Hub provides a framework for the health and enterprise sectors to work together to develop the innovative new solutions required to support the global healthcare transformation agenda. The Hub’s primary function will be to support the generation, development, validation, evaluation and implementation of new healthcare initiatives. This will involve the healthcare, research and enterprise sectors working together in close collaboration to provide an effective route for new innovations from the outside (i.e. enterprise sector, researcher community) to access the healthcare system for development, validation, evaluation and to support the adoption and commercialisation of new innovations developed by healthcare practitioners inside the system.

For the life sciences industry, the Hub is an opportunity to get access to the health service in order to develop and test new ideas and ultimately create new products and services that the health service can use and which can then be developed as commercially viable businesses.

Local Enterprise Offices Remit

Questions (32)

Éamon Ó Cuív

Question:

32. Deputy Éamon Ó Cuív asked the Minister for Jobs, Enterprise and Innovation the reason business organisations were not included in the consultation group on the future of local enterprise boards; his views on the location of local enterprise board offices; and if he will make a statement on the matter. [51856/12]

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Written answers

Earlier this year, the Government decided to proceed with a major commitment in the Programme for Government to reform the system for delivery of support to small and micro businesses to make the operating environment more coherent, responsive and conducive to entrepreneurship. The aim is to deliver high quality, accessible micro-enterprise and small business supports that promote the creation and maintenance of employment, nurture entrepreneurship and innovation and a culture of delivery.

The programme of reform will draw on the best experience in the County and City Enterprise Boards (CEBs), Enterprise Ireland and the Local Authorities in an integrated fashion. A First-Stop-Shop will be created at local level bringing local enterprise support into an integrated national network of Local Enterprise Offices (LEOS) situated within Local Authorities, operating under a Service Level Agreement with Enterprise Ireland (EI).

Following the publication of the Action Plan for Jobs 2012, I conducted a nationwide consultation process with business, the purpose of which was to outline the Government’s approach to the creation of employment and to hear the views and ideas of entrepreneurs on what type of supports they required to protect existing jobs and create new ones. In the course of my interaction with business people on the ground, I learned that in many instances there was a dearth of awareness of many of the schemes available to support small and micro businesses and that an appetite existed within enterprise circles for more extensive business orientated information and more user friendly points of access - and that there is a clear need for a network of first-stop-shops for enterprise support at a local level.

On foot of the Government decision in April to dissolve the CEBs and transfer the functions, assets and liabilities to EI, an Implementation Working Group (IWG) was formed, chaired by my Department. Whilst business organisations were not included in the IWG, I have continued to consult with them primarily through the Advisory Group for Small Business (AGSB). The AGSB raised concerns about the delivery of the new model through a Local Authority entity. The IWG extended an invitation to representatives of the AGSB which I also attended and this was a useful opportunity for a robust and informative exchange of views. I am satisfied that the AGSB have a clear understanding of the objective of this reform process and that their concerns were addressed. The IWG has made significant progress in determining the structures, functions and staffing arrangements for the new model. In tandem, the establishment of a Micro and Small Business Unit to develop a Centre of Excellence within Enterprise Ireland is at an advanced stage.

Yesterday, as part of my ongoing efforts to engage and consult with the business community in particular, I published a consultation paper which sets out the vision of this reform process. I am keen to receive the opinions from the micro and small business sector across Ireland, particularly on how the changes to be brought about can best provide support to the right people, at the right time and at the right level.

Within the next few weeks, I intend to engage with the Joint Oireachtas Committee on Jobs to facilitate discussion and input on the draft Heads of the legislation required to implement the earlier Government Decision.

Scientific and Technological Fund

Questions (33)

Charlie McConalogue

Question:

33. Deputy Charlie McConalogue asked the Minister for Jobs, Enterprise and Innovation his views on the recent claims that demands by Science Foundation Ireland that State supported research must deliver an economic or social return is damaging science here and causing young researchers to emigrate; and if he will make a statement on the matter. [51852/12]

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Written answers

There has been much discussion across Ireland’s research system in recent months, much of it arising from the National Research Prioritisation Exercise and from other reforms being introduced across Ireland’s research system.

Ireland has substantial achievements in science over the past decade. We are now in the top 20 in the world for the quality of our scientific output, and in the top 10 globally in a number of specific areas such Immunology (3rd) and Materials Science (8th). The challenge now is to build on these achievements and take our performance to the next level, and that is what the reforms across our research system are aimed at achieving.

In February this year the Government agreed to the adoption of the recommendations of the Report of the Research Prioritisation Steering Group (referred to as the NRPE – the National Research Prioritisation Exercise) as a whole of Government policy goal. This essentially means that the majority of the state's investment in competitive, publicly performed R&D will be focussed on the 14 priority areas and 6 underpinning areas identified in the report - the areas that were judged most likely to deliver economic and societal impact and ultimately jobs.

In tandem with focussing investment in these 14 areas the report recommends that research funders ensure that they test for impact on, as well as relevance to, these priority areas in addition, of course, to continuing the drive for excellence in research. However, this does not mark a departure from funding in basic research and in fact the Steering Group's Report states clearly that "a healthy, balanced, sustainable research system supports all aspects of the research continuum and this cannot be achieved by focussing investment on only the applied part of the research continuum". Within the proportion of funded affected by the NRPE, basic research will also be supported but it must show relevance to and impact on one of the priority areas if it is within the funding that is being prioritised.

Given Ireland’s current fiscal circumstances there is a need to accelerate the delivery of economic and societal benefits from our investment in research by prioritising resources in areas of opportunity, building closer collaboration between the research base and enterprise and making it easier to commercialise and use new knowledge. However, we recognise that we cannot sustain this without maintaining the world class research base that we have built over the past decade or so. We must succeed in both maintaining our quality research base and accelerating the delivery of the benefits of this investment at the same time and within the resources available.

Therefore consistent with Government policy, SFI is now seeking to build upon the groundwork already put in place by continuing to invest in excellent research and by engendering greater impact from its funded research for the benefit of Ireland. It is important to reiterate that SFI was established under an enterprise ministry in 2000 and its mandate has always been to deliver on the future competitiveness needs of Irish enterprise. Therefore the relevance and impact of science being supported by SFI to the enterprise base is not a new development.

SFI will continue to fund research within the 14 prioritised areas and the 6 underpinning areas. SFI will be ensuring that the focus on commercial outcomes will not have any negative impact on the high standards of scientific research – it will continue to focus on research excellence with impact for Ireland.

It is also important to appreciate that SFI research grant funding is typically in the region of €150m per annum. This represents approximately 25% of the overall publicly funded R&D performed in the State. There are also significant research funding agencies spread across a range of Government Departments spanning Education, Health, Energy, Agriculture, Marine and the Environment.

For example, in addition to SFI, and with policy responsibility falling to the Department of Education and Skills, the Irish Research Council (IRC), was formally established in March 2012 by the Minister for Research and Innovation, Seán Sherlock TD. The IRC will continue the various activities of the two former Councils, IRCHSS and IRCSET. The remit of the IRC covers the full range of disciplines and has the broad remit of supporting and enhancing human capacity development; in particular at postgraduate and early stage postdoctoral researcher levels. Furthermore the IRC will support and encourage independent exploratory research.

The international research community is highly mobile so there will always in-flow and out-flow of talented researchers. There is no evidence to date to suggest that talented researchers are being forced to emigrate from Ireland as a consequence of the recent introduction of the Government’s Research Prioritisation policy. Since 2008 SFI has managed to maintain supports to a cohort of 3,000 or so researchers out of the national cohort of approximately 7,500 or so.

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