Peter Power (Limerick East, Fianna Fail)

I welcome the opportunity to take part in this debate on higher education. It is very timely as we are on the cusp of having a global knowledge economy. I welcome the format of the debate because it is very much like that in the Seanad, whereby one is allowed to make statements outside the context of legislation or ministerial questions. It is right that we should have a more reflective type of debate on issues which are of key importance to our economy and society.

Many people, especially in Limerick, are fond of recalling the far-sighted decision of a Government in the 1960s, taken by the then Minister for Education, Donagh O'Malley, to introduce free second level education. People often cite the decision as the basis of one the most far-reaching policies to have been implemented by a Minister for Education. It is often argued that it was the foundation and bedrock of this country's educational advances and economic development over the last 20 years. We need to consider whether future generations, when they look back in 20 or 30 years on the wider debate that is taking place at present, will believe that the decisions being made today are as far-sighted and enlightened as those made in the 1960s. We should not lose sight of our responsibility to serve the generations to come. The Lynch report of 1961 formed the basis for the decision to introduce free second level education later in the 1960s. The report, which is often forgotten, was far ahead of its time.

It is generally agreed by the Members of the House that the development of our education system has been the foundation of our economic success. The success of a nation does not relate to economic success only. It involves developing an education system, including a higher education system, that facilitates the personal fulfilment of every person who takes part in it and ensures that young people can achieve their potential, not as workers in our economy but as members of our society. It is important that we should develop our education system as a means of breaking down the traditional social and class barriers which have affected our country. The need to provide for a good education system is important for reasons which do not relate to the development of our economy over the next 20 or 30 years.

I had the honour and privilege of serving for a number of years on the governing authority of the University of Limerick, at a time when the university was focussing on the issues being discussed by the House today. I refer to issues like the movement from traditional third level education to the next level — the fourth level — of higher education, the need to invest in and focus on research and development and the development of PhD courses. The authority learned a number of lessons as it was planning the university's approach to such issues. There is a direct connection between the supply of high-quality PhD courses and foreign inward investment. Much of this country's recent inward investment related directly to the free availability of third and fourth level researchers and PhD students. That is a key factor in this debate.

During debates about research and development, people often forget to focus on the need for this country to develop a good reputation as a centre of excellence in research and development and in PhD courses. We are trying to entice world-class researchers, who tend to be quite discerning, to this country. When they are deciding whether to move to Ireland, they examine the attractions we have to offer, the availability of state-of-the-art research facilities, the quality of our graduates, the number of graduates available to assist them in their research and the role of private sector investment in research. The University of Limerick has found it is a very competitive environment. There are many universities trying to attract world-class researchers. When we draw up our plans, we have to ensure Irish universities are extremely attractive to researchers. Not only do we need to attract researchers from abroad, but we also need to create the conditions in which world-class researchers in this country stay here rather than being attracted abroad. The strategic innovation fund will have a significant role to play in creating such conditions. In that context, I welcome the investment of €300 million over five years, as part of an overall multi-annual package of €1.2 billion for the third level sector.

I would like to refer to a couple of issues on which we need to focus. There is no point in investing substantially in third level education if we do not provide for more research and development and more PhD courses. If we are to invest hundreds of million of euro, we have to put in place a plan that makes a direct connection between the benefits and results of such investment on the one hand, and our economy's skills and social needs on the other. The planned increase in funding for medical education at third level, for example, is designed to meet a skills shortage while addressing a social need. We need to ensure similar thinking is applied to research. We should support research that will lead to further investment. Traditionally, there has been a difference between the European and United States research models. Practically all research in the US has a direct correlation with economic development and job creation. We need to be very careful in that regard.

The national technological park, which is based in the University of Limerick, is a good example of the connection that needs to be made between top quality research and the knowledge-based economy. There is an ongoing roll-out at the park of incubation units and small enterprises, which take seed knowledge from the university and apply it to the practical reality of producing consumer goods and products which can be sold successfully. It is a vital cog in this wheel. The former president of the University of Limerick, Mr. Ed Walsh, who is recognised as a world-class leader, thinker and innovator in the field of higher education, understood the need to make the vital connection between the needs of the economy and the development of third level education. My constituency colleague, Deputy O'Sullivan, who was present at the university's Kemmy business school the other night, is familiar with the collaboration between third level education and the private sector that is taking place at the school. Private funding is being invested in the university to produce real results for the business community. It is not pure academic research, but academic research that is directly linked with the business community. It is another example of what I am talking about.

Deputy Coveney spoke at length about the European context, which is very important. I was interested in the recent statement of the President of the European Commission, Mr. Barroso, that he intends to develop a European institute of technology to match the world-renowned expertise of the Massachusetts Institute of Technology. It is important, within the overall framework of higher level education, fourth level education and research and development, that Ireland that should get involved in the project, which is at its inception stage. As it will be one of the European Union's biggest projects in the coming years, we need to get a slice of the action.

I have outlined some of my thoughts on the need for continued investment in third and fourth level education. I emphasise the need to link that investment to the requirements of our economy over the next 20 or 30 years.

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