Mr. Martin D. Shanahan:

As I have provided a detailed briefing note to the committee, in presenting the annual report and accounts for 2012, I will make a few introductory remarks.

Forfás is Ireland's policy advisory board for enterprise, trade, science, technology and innovation. Its primary function is to advise the Minister for Jobs, Enterprise and Innovation on the development of enterprise within the State. Forfás also has a co-ordination role with respect to Enterprise Ireland, IDA Ireland and Science Foundation Ireland. It is the statutory body in which the State's legal powers of industrial promotion and technology have been vested.

Forfás is also the legal employer of staff in Forfás, Enterprise Ireland, IDA Ireland and Science Foundation Ireland. It provides research and analysis and manages the work of a number of independent councils, including the National Competitiveness Council and the Export Group on Future Skills Needs. In addition to its primary policy advisory functions, Forfás undertakes a number of other functions. The Irish National Accreditation Board is a sub-board and division of Forfás. In 2012, Forfás provided a range of shared services to Enterprise Ireland, IDA Ireland and Science Foundation Ireland, including pensions management and properties and facilities management. In 2012, Forfás was the legal host for the Office of Chief Scientific Adviser to the Government and for the Euroscience Open Forum, which was a significant international event held in Dublin in July of last year.

In September 2011, the Minister for Jobs, Enterprise and Innovation announced his intention to integrate the policy and research capability of Forfás with the Department of Jobs, Enterprise and Innovation. Government agreement was secured in April 2013 to commence drafting legislation to provide for the dissolution of Forfás and the transfer of its staff and functions to the Department and other legal entities, as necessary. In anticipation of the dissolution of Forfás responsibility for certain functions previously undertaken by Forfás and which did not require statutory adjustment have already been transferred to other bodies, including, for example, property management, the discover science and engineering programme and the Office of Chief Scientific Adviser to the Government.

On the core function of Forfás in 2012, the agency provided advice to the Minister for Jobs, Enterprise and Innovation and Government across a wide range of policy issues, including strategies for the construction, manufacturing and social enterprise sectors, a review of the cost of doing business in Ireland, a review of Ireland's competitiveness performance, an audit of the licensing requirements for business and the proposed measures to reduce the burden; identification of the key skills requirements of enterprise; the prioritisation of State investment in research and development; analysis of tax and finance issues for business and a study to identify changes in the operation of sector regulators that would enhance cost competitiveness.

A significant focus of Forfás work in 2012, as in 2011, was the development and implementation of the Government's annual action plan for jobs. Forfás has a number of roles in this regard. It works closely with the Minister and his Department in developing the action plan and liaises closely with other Departments and stakeholders in identifying the key actions required to support enterprise and jobs growth. Forfás is a member of the committee which monitors progress on the plan on a quarterly basis. It also has lead responsibility for implementation of a significant number of the actions in 2012 and 2013. Forfás is currently working on the development of the 2014 Action Plan for Jobs.

Forfás regularly reviews enterprise and sectoral policies and, through its annual surveys, monitors Ireland's and, specifically, the enterprise agencies', performance in terms of job creation, innovation and economic impact. In 2012, we also undertook evaluations to assess the impact of individual agency programmes, as part of the ongoing programme of evaluations across the enterprise agencies. Forfás operates effectively and efficiently and has delivered a substantial work programme, particularly in the context of significant decreases in staffing resources. This is achieved through the commitment and flexibility of its staff. Forfás policy work cannot be undertaken without partnership engagement and the commitment of others, including Departments, the enterprise agencies and the wider community of stakeholders.

While the focus of this meeting is the annual accounts for 2012, Forfás has a broad ranging and challenging work programme for the current year.

We are working closely with the Department of Jobs, Enterprise and Innovation and the relevant agencies to ensure the successful integration of Forfás in the Department. I would be pleased to respond to any questions the Chairman and members may have.