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Dáil Éireann díospóireacht -
Wednesday, 2 Dec 2009

Vol. 696 No. 4

Priority Questions.

Job Losses.

Leo Varadkar

Ceist:

33 Deputy Leo Varadkar asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs she predicts will be lost in 2010 and a breakdown by sector; and if she will make a statement on the matter. [44911/09]

The current global economic crisis is adversely impacting on the unemployment levels across almost all advanced economies. According to the OECD, since December 2007 there has been an increase in unemployment of 16 million people, bringing the present OECD total to almost 46 million people unemployed.

It is expected there will be further increases in unemployment in the OECD in 2010, as employment growth tends to lag behind economic activity. It is, therefore, not expected that significant employment growth will occur next year in Ireland. The Department of Finance pre-budget outlook forecasts the unemployment rate in 2010 to average about 13.75%.

However, despite these projections it is worth noting that considerable churn is still evident in the Irish labour market. Over the past 12 months, more than 150,500 people have left the live register to take up employment. The Department of Finance projections for next year do not include a sectoral breakdown of employment.

The Government is taking specific measures to ensure job retention and job creation are maximised. Enterprise Ireland has prepared a new recovery strategy to assist its clients. This strategy refocuses Enterprise Ireland's efforts in strengthening and sustaining companies of strategic importance through a range of initiatives focused on the needs of their client base.

The enterprise stabilisation fund was launched earlier this year. It supplies direct financial support to internationally trading enterprises that are investing in cost reduction or other measures to gain sales in overseas markets. Client companies of Enterprise Ireland, IDA Ireland, Údarás na Gaeltachta and Shannon Development across all sectors in manufacturing and internationally traded services are eligible to apply. Enterprise Ireland has approved approximately €56 million of which €50 million will be paid out this year. To date, 140 companies have been approved to date to receive funding.

The employment subsidy scheme has been introduced to support the maintenance of vulnerable jobs and prevent people from being made redundant in the challenging national and global economic environment. The first call of the scheme will provide subsidies directly for 7,773 jobs. In addition, firms have committed to retain a further 36,260 jobs. This means a total of just over 44,000 jobs will be retained as a result of the first call of the scheme, at a cost of €70 million over 2009 and 2010.

I have decided to have a second broader call for applications with extended eligibility criteria open to both exporting and non-exporting firms. It will be open to many companies not eligible to apply for the first and will have a budget of €65 million.

As part of a sustained, co-ordinated and integrated approach to job search, training, education and work placement supports, I have doubled the provision of training and work experience places managed by FÁS to more than 130,000. The referral capacity of FÁS employment services from the Department of Social and Family Affairs has been increased to 147,000 persons in 2009.

Additional information not given on the floor of the House

The Government has, therefore, enacted a broad range of measures to support companies and individuals in these difficult economic times and we will continue to do so in the future.

I thank the Tánaiste and Minister for Enterprise, Trade and Employment for her reply. She referred to the OECD unemployment projections and everyone accepts it will increase across the world. What was left out of her reply was the fact that of all the OECD countries, Ireland has the second highest standardised unemployment rate. Only Spain has a higher rate. That is a real change and shows how much worse matters are in Ireland than in other countries.

The Tánaiste and Minister for Enterprise, Trade and Employment projected the standardised unemployment rate will reach 13.75% next year. What will this mean in raw numbers? How many additional net persons will be on the register?

Does she believe the scale of her response is adequate? I accept there is a stabilisation fund with €50 million and the temporary employment subsidy with €20 million and another €30 million to come and more schemes. However, the Government was able to find €7 billion to overpay the banks. Could the Government find at least €1 billion to support employment?

Will it introduce schemes such as those proposed by Fine Gael like reducing employers' PRSI contributions, maintaining the capital budget to build more schools and invest in infrastructure to create jobs rather than pay people to have longer holidays? Will it create internships for graduates and short-time working like they have in Germany?

The projected unemployment figure is based on averages as one cannot say what the definite figure will be. Obviously, we would all like it to be lower than 13.75%. It is important to note that the live register does not exclusively pertain to unemployment claimants as people on part-time assistance and other benefits are also included in it. In this and October's live register, we have seen quite a reduction in the number of people who found themselves unemployed.

There are initiatives with the stabilisation fund and the employment subsidy scheme. We tend to forget there are large investments in the client companies of Enterprise Ireland, IDA Ireland, Údarás na Gaeltachta and Shannon Development. There are also important initiatives in companies developing skills and increases in grants for research and development and the launch of innovation vouchers. I am glad indigenous companies have moved more towards a research and development focus.

There were also 70 high potential start-ups, HPSUs, this year which shows massive investment by Enterprise Ireland in new opportunities. An hour ago, the Government launched its green technology document, based on the work of Joe Harford and the high level action group on the green economy. It is estimated an additional 80,000 jobs can be created in this sector. There is both sustainability and stabilisation of jobs with investment for the future. While we never have enough money, the targets are focused.

The biggest problem is the scale of the Government's response. I accept some action has been taken but unemployment is the largest problem facing the country. It is the greatest social and economic crisis before it. Unemployment benefit accounts for half the deficit and yet the additional resources the Government has put into tackling it amount to somewhere between €100 million and €150 million. It requires a much greater response.

Will the Tánaiste agree that to bring down unemployment requires the investment of €1 billion, one seventh of what her colleague overpaid the banks? Will she agree with Fine Gael's suggestions to keep capital spending going, cut employers' PRSI, increase community employment schemes and deliver internships for graduates? It is those kinds of measures that will make a difference. The scale of the Tánaiste's response so far, however, has not been adequate. Largely it has been one of corporate welfare rather than supporting the people who really need it.

I do not agree because we have done both. Yesterday, changes were made to the job placement programme recently discussed at the Joint Committee on Enterprise, Trade and Employment, which will see more internships and work-experience placements. That was the result of work between me and the Minister for Social and Family Affairs. There has been further large scale investment in training programmes with specific emphasis on getting people back into third level to take up conversion courses. The Government is examining other initiatives that will support people, employment and sustaining people in employment. In the context of spending for next year, we have evaluated the quality assurance of many of our courses and have considered what new interactions may be necessary. The Deputy will appreciate that I cannot pre-empt what the Minister for Finance will say. We are currently assessing specific initiatives, including short term working, some of which are operating on a pilot basis.

Flood Relief.

Willie Penrose

Ceist:

34 Deputy Willie Penrose asked the Tánaiste and Minister for Enterprise, Trade and Employment the measures she is considering to assist small and medium sized businesses which may have suffered damage or loss during the recent flooding, having particular regard to further job losses; and if she will make a statement on the matter. [44700/09]

Willie Penrose

Ceist:

36 Deputy Willie Penrose asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has had talks or plans to have talks with the banks about the provision of short-term credit facilities for small and medium sized-businesses who have suffered damage or loss during the recent flooding; and if she will make a statement on the matter. [44585/09]

I propose to take questions Nos. 34 and 36 together.

I take this opportunity to acknowledge the deep personal distress and loss suffered by so many people around our country as a result of the recent flooding caused by unprecedented weather conditions. We have all seen vivid images of the impact of the floods on family homes and farms, community resources and business premises.

Local action plans were implemented to address immediate emergency responses, to rescue and safeguard people and to protect to the greatest extent possible homes and premises from the affects of flooding. These efforts are continuing. We must acknowledge the dedication and commitment of the personnel of the various authorities and agencies, public and voluntary, communities and individuals who did outstanding work in assisting with the rescue efforts.

Government focus has been on responding through the rescue efforts and in assisting those in exceptional need or experiencing hardship as a result of the flooding. Exceptional and urgent needs payments are being paid out immediately by community welfare officers to people who need immediate basics such as food, shelter, accommodation, bedding and furniture. The Deputy will be aware of the announcement of initial funding of €10 million for a humanitarian assistance scheme, operated through the Department of Social and Family Affairs, to facilitate individuals and families returning to their homes. As this is a hardship fund, such assistance will be means tested. What is being provided is not compensation but humanitarian relief for those in immediate difficulty.

Flood damage has also caused difficulties for businesses in the affected areas. While some businesses have been able to clean up and re-open others are still dealing with flooded premises and water damaged equipment and stocks. The humanitarian assistance scheme is not intended to cover business losses. It is primarily for the insurance sector to respond to such businesses under the terms of their commercial insurance policies. It is not the State's role to put itself in loco the insurance industry. Insurance companies should respond quickly to their customers’ claims and ensure that payments flow back to policyholders to facilitate early resumption of business.

The banking sector too has an important role to play in supporting businesses coping with the impact of flood damage. It is imperative that such businesses receive supportive responses from banks to requests for working capital loans and re-stocking loans and for any temporary adjustments to loan facilities already in operation. I am glad to note that one main bank, Bank of Ireland, has already announced a number of measures to assist both personal and business customers in areas impacted by the recent floods. The bank is asking such customers to make contact with their local branch or the bank's emergency helpline so the bank can assess the most appropriate support as quickly as possible. Emergency working capital facilities or loan repayment deferrals for business customers can be considered.

Within my Department, the enterprise support agencies are available to offer advice to client businesses requiring assistance. The normal financial supports from these agencies remain available to clients. I have asked the county and city enterprise boards in the relevant areas to report to me on the effects of the flooding on their clients' businesses. The gathering of this information will intensify as businesses move to recovery stage and the extent of their needs becomes clearer. The Minister of State, Deputy Kelleher, and I will assess as a matter of urgency this information when received.

I thank the Minister for her detailed reply. I concur with her remarks about the people and statutory agencies who worked extremely hard to assist people in these adverse circumstances. I sympathise with householders who suffered huge losses and have been displaced from their homes and with the small and medium sized business and farming community. I have first-hand evidence of what happened in Athlone, Longford, Cavan, Carrick-on-Shannon and so on. Huge devastation has been inflicted on households and small and medium sized enterprises across the geographical area. The flooding has washed away years of hard toil and perspiration and has left in its wake a trail of destruction, devastation and massive loss.

These people, including householders, business people and farmers, will have to pick up the pieces during the next couple of months. For those who have insurance, the first port of call for them will be their insurance company and statutory agencies such as the local authorities. I know Westmeath County Council and Athlone Town Council have done the best they can within meagre and limited resources, which we must never forget. There are, however, people who do not have insurance and who are in a precarious situation. These people may not have been able to obtain insurance because they previously made a claim in respect of flooding. We are aware that businesses are facing challenging times and are urging people to shop local and support local businesses that have been affected in recent weeks by the flooding. Insurance companies may cover companies who make a claim for flood damage if such flooding is random.

The Deputy must ask a question.

I wish to ask a few questions of the Minister.

I will call the Deputy again on a supplementary question.

Members may have heard on "Frontline" on Monday night Mr. Peter Callan, a window manufacturer who expressed concern for the welfare of his employees and Mr. Finn from Gort who expressed his concerned about his furniture factory, employees and neighbours. Deputy Wall spoke of the steel manufacturer in Athy which has closed with the loss of ten jobs.

Given the current situation, could a grant aid system be devised to assist people to replace machinery and equipment? This could be administered through the county enterprise boards. Is it not time to look afresh at this issue and to consider the introduction of a national insurance scheme for people living in flood plains who cannot obtain insurance? We need to start thinking outside the box. Perhaps the Minister will address those two issues.

The Deputy's idea is a good one, which perhaps we should consider.

I hope the Minister will consider it. I am not point scoring.

No. This is a serious issue for the people concerned. I suggested the county enterprise boards deal with this issue given their local knowledge and so on. They have come back to me with an initial response in terms of what is happening locally. Some people have made contact and others have not. I have asked the county enterprise boards to reaffirm what is happening and to, if at all possible, ascertain if people are insured. I echo the call made by the Minister of State, Deputy Kelleher, that the insurance companies be up-front with those who are insured in terms of providing seed capital to assist them to get back on their feet. Without a doubt, a number of companies have agreed to do this, which is good.

On the CEBs, until such time as we assess need — some individuals have been in touch with me and my offices and we are working with them and their insurance companies or banks — we cannot articulate the overall Government response. The Deputy's proposal for the introduction of a national insurance scheme merits consideration.

Perhaps I can make some other suggestions. I do so in an effort to be constructive. Perhaps local authorities could be encouraged to grant rates and charges waivers to affected businesses and households. This would be useful. Perhaps also the Government could — this was mentioned this morning by Deputy Sheahan — take steps to amend the Credit Union Act 1977 to allow credit unions to extend from five years, which is currently the maximum period, to ten years the period in respect of loan repayments. Will the Minister ask the famous banks, whom the people subjected to this flooding are bank-rolling through their taxes, including householders, farmers and small businesses, to assist specific householders and businesses? These people have been identified by the local authorities in Cork, Westmeath, Leitrim and Galway. Will the Minister request the banks to reduce their overdraft rates, which are excessive, and to give people term loans at a competitive rate? A drop of 2% in this regard would be significant. It would be akin to the Government giving people a grant of, say, €15,000 or €20,000. It is important this is done. Perhaps also they could be asked to lengthen the period of repayment and to advance term loans and overdraft facilities at discounted rates, all of which would be positive steps.

Will the Minister liaise with the banks to ensure they do their job with regard to the people who have been affected by the flooding, including small businesses, farmers and so forth? The bank representatives have appeared before the Oireachtas committees. They tell the committees one thing but 48 hours later we hear something different. One day they did not need capital but 48 hours later they did need capital from the Government. The banks must meet their commitments without fudging or dodging. They should play a positive role to help this country get back on its feet and to help the businesses, householders and farmers who are suffering. I seek positive action from the banks, not mealy-mouthed responses.

I would not disagree with the Deputy's comments. The Minister of State has met with the banks' representatives on a number of occasions. We have called on them to support people in a pragmatic way. As I indicated, the Bank of Ireland has done so and my assumption is that at local level all the relevant banks will involve themselves with the humanitarian needs of these businesses, farmers and others who have been affected substantially by the flooding. Equally, an up-front payment from the insurance companies would be hugely beneficial. This issue was raised at the meeting with the Small Business Forum last week. The Minister of State took the meeting after I had to come to the House. We had further discussions on the matter in that context.

We will continue to engage on these issues. We can also engage with the Department of Finance on consideration of the amendment to the Credit Union Act.

Do not forget the insurance scheme.

All these things are very expensive——

Take a look at the one in Florida.

I will ask Forfás to examine whether consideration should be given to setting up such a scheme.

It would be a limited scheme.

Job Creation.

Damien English

Ceist:

35 Deputy Damien English asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of new jobs she or each agency under her remit have forecast to be created in 2010, 2011 and 2012; and if she will make a statement on the matter. [44912/09]

Enterprise Ireland is the lead Government agency responsible for the development of indigenous enterprise. The fundamental objective of the current Enterprise Ireland strategy is to drive export growth momentum and internationalisation in what is an increasingly challenging and competitive environment for companies. Enterprise Ireland's strategy, Transforming Irish Industry 2008-2010, identified four key strategic targets for the three year period. In 2008, despite the unprecedented downturn in the global economy, Enterprise Ireland met or exceeded its yearly targets. As stated in Enterprise Ireland's annual report 2008, agency client companies created 10,522 jobs last year.

Given the global economic turmoil, 2009 was a tough year for foreign direct investment, FDI, but IDA Ireland continued to win projects and, to date in 2009, there have been 47 IDA announcements with the potential to create more than 2,500 jobs. The IDA's focus continues to be on transformation, minimising losses as well as creating new jobs. The IDA is working with its existing client base to deepen and further embed their investments in Ireland. The agency has an active programme of engagement with clients to identify and target new investment opportunities from these clients. IDA client companies employ in excess of 136,000 full-time workers at present. The IDA continues to encourage and assist its client companies to move up the value chain in terms of both carrying out higher skilled operations and expanding their presence in Ireland. The aim is to retain existing clients, to improve the quality of employment opportunities in Ireland and to increase the positive economic impact. Ireland is now seen by the global business environment as a prime location for research, development and innovation functions. The IDA has played a key role in establishing this competitive advantage for Ireland and is heavily involved with all stakeholders to capitalise on this aspect.

The role of the county enterprise boards is to support the micro-enterprise sector in the start-up and expansion phases, to develop indigenous micro-enterprise potential and to stimulate entrepreneurship at local level. The overall priority for capital expenditure by the boards is on the development of sustainable growth-orientated micro-enterprises which, over time, can develop into strong export entities. The boards have a successful job creation record to date with the creation of more than 33,000 jobs in CEB assisted businesses throughout the country since the inception of the boards in 1993. In the current economic climate the expectation is that the demand for the services of the boards will increase as a greater number of people look to self-employment as an alternative to unemployment.

What question was the Minister answering? It was not the question I asked.

I answered the question the Deputy asked.

I asked for the job predictions for the next three years. That is the information I am seeking. I am trying to be helpful and to work on this.

None of those agencies prophesises the future.

That is very strange because they always prophesised the future previously. Enterprise Ireland and the other bodies always gave predictions for job creation in the years ahead.

No. The annual report showed the number of jobs created.

No, Minister. Its representatives used to come to Oireachtas committee meetings and give a rough estimate of the jobs they hoped to create. I hope the Minister is wrong and that they have plans to create jobs in the years ahead. If the Minister of State cannot tell me about them today, perhaps he will undertake to find out what their predictions are for job creation for the next couple of years. When unemployment is at more than 400,000 they surely must have some idea of what jobs they expect to create in the future. That is the least we can seek. If these agencies do not have plans, what plans do the Ministers have? If they do not have plans, I ask them to do me a favour and look at our document, New Era.

The Tánaiste should not interrupt.

Perhaps the Minister of State would comment on it. We believe it is a good document that is well thought out and well costed. It is a good initiative and we believe it will create more than 100,000 jobs over the next four years. In the absence of plans for job creation from these Ministers and their agencies, perhaps they will examine ours. If the Minister thinks it is wrong, she should tell us where and we can change it. However, they should work with us on it. The Minister of State must reply to me with some predictions.

Send the Minister of State a copy.

I do not know if that document has been widely read but we had a look at it. If there are any good proposals, we will certainly examine them. In the broader context, the IDA does not say how many jobs it will create in a year.

No, it does not.

Allow the Minister of State to answer the question.

The IDA is charged with the function of creating as many jobs as possible. Its purpose is to attract foreign direct investment and to support companies locating in this country. The reverse is the case with Enterprise Ireland, whose purpose and function is to promote and sustain as many jobs as possible, as opposed to having particular targets. Its purpose is to establish companies in Ireland, bring them up the value chain and assist them in accessing markets internationally. The idea that on 1 January of any year they would state they will create a certain number of jobs in that year would not be operational. What we are doing on a continuous basis is supporting employment and the number of jobs that flow from that as a consequence. Take the example of the 47 announcements by the IDA this year and the 10,500 jobs created with the assistance of Enterprise Ireland. At the start of 2008, however, the agencies did not specifically state they would create X number of jobs. That would be a very foolish way to operate.

I am very nervous for the future given that the Minister of State tells me he has no predictions, aims or targets to create jobs.

That is what I asked about in the question. With respect, it is true that Enterprise Ireland makes predictions. Its representatives appeared before an Oireachtas committee two years ago and predicted it would create 10,000 jobs. It makes predictions and the Minister should not try to tell me I am wrong about that. It is its job to do that. If the Minister does not have that information today, I ask him for the last time to come back to the House in the next couple of weeks with the predictions so we can work with them. At least we produced a document which we believe can create jobs, although I do not believe the Minister has read it.

We did. It is a regurgitation of the last document.

Only one member of the Government can respond on each question.

It is not. It is better than no predictions. Please come back to the House on the next Question Time with some predictions for job creation.

The Minister of State can give a brief final reply.

The country has serious problems, but the Government has no plans or targets. It is a disgrace. I cannot believe it.

That document involves the sale of many assets at a depressed time in the market but——

It involves creating jobs.

——thankfully, that is a decision the Deputy will not be making.

The fire sale of the century.

It is amazing; there are no targets.

This is very important. The smart economy document contains projections for jobs in the forthcoming years.

What are they? That is what I asked.

However, in the case of the agencies about which the Deputy asked——

All the agencies.

Yes. The agencies for whom I am replying are Enterprise Ireland, the IDA and the county enterprise boards. They do not get into the issue of specific——

They do. They should if they do not.

Let him answer the question.

He is answering the question.

He is not answering the question.

If the Minister will give way, the Deputy should not shout down the Minister of State. If he does not agree with his answer, that is the Deputy's affair but he should not shout him down in the House.

He did not give me an answer.

I am giving the Deputy the facts.

He is making a show of the House.

If the Deputy would listen, he might hear.

I have listened very carefully.

The Minister of State should conclude.

I am trying to be as helpful as possible for the Deputy. If he wishes to go elsewhere for information, that is fine. I have come to the House to give him the information I have and to assist him in any way possible.

He has no jobs policy.

The remit of the IDA is to attract foreign direct investment to this country. Enterprise Ireland is charged with supporting indigenous industry and exporting. The number of jobs created is in the annual report of Enterprise Ireland, not in projections.

The Minister of State is not answering the question.

The time for this question has expired.

Scientific and Technological Fund.

Deirdre Clune

Ceist:

37 Deputy Deirdre Clune asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce changes to the way funding is allocated under the science technology and innovation programme to ensure that resources are prioritised on the basis of expected commercial returns; and if she will make a statement on the matter. [44914/09]

The objective of the Strategy for Science, Technology and Innovation 2006-13, SSTI, and the National Development Plan 2007-13 is to make a transition to a knowledge economy to enable Ireland to compete in a highly competitive global market. In December 2008, the Government reinforced the importance of this investment in a document, entitled Building Ireland's Smart Economy — A Framework for Sustainable Economic Renewal, which prioritised continued investment in science and engineering infrastructure and research.

The infrastructure investment underpinning the SSTI is central to economic recovery. The commercialisation of our research investment and the creation of a successful track record in the area of higher education research, as well as output of quality graduates at both undergraduate and postgraduate levels, will be an important aspect of building a sustainable enterprise base underpinned by productive innovation activity across the economy.

I am confident that there have already been achievements arising from the strategy. The recently published report, Science, Technology and Innovation — Delivering the Smart Economy, confirms that, overall, substantial progress has been made in the achievement of SSTI objectives. We are building strong linkages to ensure diffusion and commercialisation of an increased flow of new ideas and knowledge to produce innovative products and services that will win export markets and create much needed sustainable employment.

Innovation, through better products, processes and business models, supported by near-to-market research and collaboration with knowledge providers, is the primary way for Ireland to gain a competitive advantage and secure export growth. With regard to the commercialisation of research, Enterprise Ireland, EI, offers a suite of supports to academics and institutions to commercialise their research and build the commercialisation system. These include funding provided through the €25 million commercialisation fund as well as funding and support for effective technology transfer offices in university campuses, commercially relevant research centres in institutes of technology and campus incubation facilities to support new technology companies in their formative years. This programme to realise the commercial potential of Ireland’s research community is supported in 2009 by a projected level of investment of €36 million. As at November 2009, the EI-supported technology transfer offices facilitated the creation of 20 start-up companies, 339 invention disclosures, 97 priority patents filed and 47 technology licence transfers between companies.

Additional information not given on the floor of the House.

Enterprise Ireland, EI, is focused on promoting and facilitating the effective transfer and commercialisation of research, which is critical to ensuring Ireland benefits from the State's investment in research. All EI supports are oriented towards securing commercially viable products processes and services for sale on international markets. EI has put in place a stringent due diligence process, including commercial and economic assessment, along with a comprehensive metric system, to monitor progress against these objectives. I will ensure that EI will maintain and intensify this focus.

Complementary to the supports provided by EI, Science Foundation Ireland, SFI, is supporting 29 world class research centres across the Irish universities and institutes of technology. The 29 centres comprise ten centres for science, engineering and technology and 19 strategic research clusters. These centres are a major magnet of attraction that significantly enhance IDA Ireland's capacity to win research-intensive investments. Through these centres and individual competitive grants, SFI-funded researchers are collaborating and interacting with in excess of 300 leading multinationals and indigenous firms. It is through this close industry engagement that SFI is supporting companies that employ more than 56,000 people in Ireland.

Notwithstanding the significant progress that has been made in recent years with regard to the commercialisation of research and development investment, I have received requests from enterprise representatives to consider, against the background of the current economic downturn, aligning SFI's activities more closely with the needs of enterprise. My Department is currently examining extending SFI's remit to enable it to fund its researchers to pursue applied research opportunities arising from their own oriented basic research and to bring concepts and ideas arising from their research to the stage where EI programmes, and indeed private industry, can take them further, resulting in new products, processes and companies and the economic benefits associated with this. This would also bring a renewed focus on applied research.

My question was on the way in which resources are allocated. I take from many of the Minister of State's comments that he is happy with the situation. The McCarthy report, the outputs of which I am looking forward to in the upcoming budget, noted that the emphasis in funding science, technology and innovation seemed to be on the publication of articles as opposed to more concrete economic measures. The report recommended a shift in emphasis to ensure commercial returns for resources over a certain period and a move away from emphasising the number of papers published, patents registered and so on. Does the Minister of State wish to comment?

There have been a number of positive outcomes and we should not be dismissive of people in universities publishing more papers. Indeed, this was the basis of many people's criticism——

I am not being dismissive, but there could be a more commercial focus for the money being spent.

It is important that the Deputy not be dismissive of people publishing or applying a cross-commercial paradigm. We need both components. We need more publications from academics and more commercially relevant research from the third level sector. It is not a question of one or the other, but this discussion is a simplification of what is being done in terms of research and development. We need cutting edge research from universities as well as more commercialisation.

The results of the trebling of spending on research and development in recent years have been good. Since 2005, there has been a trebling of the number of new patents and invention disclosures and a doubling of the number of spin-out companies from the third level sector. I am not saying this to be complacent. We have a good track record, but we need to up the ante. Deputy Clune's remarks reflect the word coming to us from the enterprise sector via our enterprise feedback group and our innovation task force. We need to squeeze more from less in the years ahead.

I want to allow Deputy Clune back in for a brief supplementary question. I want to keep the debate flowing.

Is the emphasis in the smart economy not on developing and creating jobs? If so, there must be a commercial return. I would not dismiss this outlook as being crass. Consider the amount of funding invested in science and technology. The McCarthy report outlined that, of the more than 90 schemes, some 60 involve funding towards PhDs. Has the Minister of State any plans to streamline this type of funding?

In recent months, people were shocked that the FÁS Discover Science and Engineering programme needed to be axed, but funding was spent on similar schemes across other boards. Is there a commitment to ensure that funding on science and technology is not spread across various agencies and, instead, is more focused? There is evidence that the current approach displaces private sector investment.

I agree with some aspects of the McCarthy report, but not others. Mr. Colm McCarthy suggested a further 14% cut in spending, but this might be too much. However, he made some valuable recommendations. In the context of our Estimates discussions with the Department of Finance in advance of the budget, we would support the idea of a single funding line as opposed to scattering the funding over a number of Departments. We would favour his recommendations on, as the Deputy rightly mentioned, the degree of fragmentation across agencies, not just Departments, of the delivery of the science spend, including EI, Science Foundation Ireland, IDA, the prestigious Marine Institute, Teagasc and many others. There must be consolidation and I will fight for this aspect of the McCarthy recommendations, particularly given the fact that we are facing a squeeze on the level of funding available. We must consolidate the spend to get a commercialised output and ratchet it up even further. I thank the Deputy for her comments and support.

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