Dr. Seamus McGuinness:

I can have a go at that, as I lead labour market research in the institute. I am not of the view that switches in research and development tax policy would have a great impact on the labour market in terms of shortages and skills. It is important to distinguish between skill shortages, where there is a genuine lack of people with the qualifications and skills to do a particular job, and manpower shortages, which may be related to wages and poor working conditions. We do not have great information and data on those points, but using the ICT skills spectrum as an example, we produce a large number of ICT graduates in key tactical areas. The solution to these types of shortage are foresight in terms of skills planning and co-ordination with the further education and university sector. If there are market failures and the Government is to intervene, the solution is for it to intervene with firms to ensure there are subsidised training programmes in areas where there are key skill shortages. That is the general approach to the issues raised.