Marian Harkin (Sligo-Leitrim, Independent)

I am pleased to have an opportunity to make a few observations on the European Council meeting. I am conscious that there are time constraints so I will deal with just one issue, the achievement of the Lisbon goals through investment in research, development and innovation. When the Taoiseach spoke about the Lisbon Agenda, he said that the European Council's conclusions focus on three particularly important issues, the first of which is investment in knowledge and innovation. All EU member states agreed to a target of investing 3% of GDP in this area by 2010. Ireland's rate of investment in research and development is a cause for grave concern, particularly when one compares Ireland's attempts to meet the targets with those of many of its European neighbours. Annexe 1 to the document on the Presidency conclusions lists the level of investment in research and development of each EU member state. Our target is just 2.5% of gross national product, not gross domestic product, and that is by 2013, not even 2010. Looking at the tables for investment in research and development for many of European neighbours, it is very apparent that we are in trouble. Of the EU 25, Ireland is exactly half way, with 12 countries above us and 12 below. Of the EU 15, we are in 11th place when it comes to investment in research and development. The comparisons are stark. At the top end of the scale are Finland and Sweden, investing over 3.5% of GDP. Then there is Germany, Austria and France with over 2%, the UK at 1.8% and the Czech Republic at 1.3% — all ahead of Ireland with 1.2%.

This is the second richest economy in Europe. We are constantly aiming to move up the value chain to higher value jobs, and yet we are not underpinning that strategy by adequate investment in research and development. This is one of the most crucial economic issues we are facing as a country and this Government is failing to invest prudently in our future. We are under constant threat of jobs moving to cheaper locations. The locating of jobs offshore and the outsourcing of production are real threats to our economic success. Counties such as Donegal felt the chill wind of this phenomenon several years ago. Now, unfortunately, the rest of the country is only too well aware of the threat. If we are to deal effectively with it, we must promote innovation and invest in research and development. We must keep ahead of the posse, but instead we trail miserably behind. It shocks me to see that even if we reach our target of 2.5% of GDP investment by 2013, in seven years' time we will still be well behind where Finland and Sweden are now.

There is plenty of money to be spent in Ireland, yet we do not invest it in research and development. As a result of this we are in danger of building on quicksand and the continued economic growth that is being predicted by so many will prove to be a mirage. This Government has played its part in creating the current positive economic situation, but unless it plans, provides for and invests in the future, the country is headed for trouble. That investment is not being made. This Government is selling off the assets of the State. The family silver is being disposed of, so that the cupboard is bare. If that money were being invested in the future, in economic growth and research and development, which would be our best guarantee of future success, then we could look forward to the future with some expectation, but that is not happening.

The Government has a responsibility to plan for our future economic prosperity and it is failing on one of the most important parts of that task. The real scandal is that even with our low levels of investment in research and development, some parts of the country fare worse than others. According to Forfás figures, the percentage spend on research and development in the Border, midland and west region was 14% of the total for 2003-04, roughly half of what the rest of the country is getting. We are being doubly discriminated against in terms of the low national level and, within that framework, the fact we are getting exactly half our fair share. In European terms that means that counties such as Sligo, Leitrim, Donegal, Mayo and Roscommon have levels of investment in research and development well the below average for Slovenia and the Czech Republic and lower than Estonia or Hungary. I do not know the Minister's view on this, but I believe we are entitled to more than that.

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