Dáil debates

Tuesday, 23 October 2007

6:00 pm

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)

That is disingenuous. Deputy Burton knows the pre-budget Estimates were not designed to deal with a detailed scheme under the aegis of one Department. We should not use this process as an opportunity for propaganda. What is of primary concern within this framework is the outcome, which is about looking after those most vulnerable and disadvantaged. This is the focus we wish to develop.

I welcome the publication of the 2008 Pre-budget Estimate for the Department of Enterprise, Trade and Employment, which amounts to more than €1.522 billion in Exchequer funding. This represents an increase of €28.68 million on the 2007 allocation. In addition to the Exchequer allocation, the national training fund, NRF, will contribute more than €402 million to my Department for the training and upskilling of the labour force. The combined Exchequer and NTF allocations will allow my Department and its agencies to continue to focus on the delivery of key services that will support Ireland's competitiveness.

Improving our competitiveness is vital if Ireland is to maintain economic growth in the years ahead. It is all the more important in the context of an ever-changing global environment and an increasing number of aspiring competitors in the global market place. To improve our competitiveness, we must anticipate and adapt to international challenges. The strategy for science, technology and innovation, which was published last year, represents a vision to make Ireland renowned for the excellence of its research and innovation. It is an integral part of the national development plan and adopts a whole-of-Government approach to transforming further the State's research and development base.

For 2008, investment in science, technology and innovation programmes under my Department's Vote will amount to more than €289 million. This funding will allow Ireland to continue to build its science base and ensure that we have the capacity to attract foreign direct investment and improve competitiveness through innovative products. Although it is early days in the delivery of the Government's science strategy, substantial progress is already being recorded. Science Foundation Ireland, SFI, made a total of 832 awards across all of its programmes to the end of 2005. By the end of 2008, it is projected this will have almost trebled, to a total of 2,401 awards. In 2008, SFI will continue to fund the existing eight centres for science, technology and engineering, or CSETS. To support and develop programmes with commercial potential, 155 projects will be supported under Enterprise Ireland's commercialisation fund. More than 50 research and development projects will be supported by the IDA in 2008.

People have raised the legitimate question of whether the STI strategy is delivering for Ireland. Total research and development spending across all sectors of the economy reached about €2.33 billion in 2006, up more than 14% on 2005. Gross expenditure on research and development has increased by 26% in nominal terms between 2004 and 2006. Research and development spending in the business sector rose by more than 17% in 2006 compared to the previous year, to reach €1.56 billion.

Expenditure in excess of €2 million in research and development activity by Enterprise Ireland assisted companies rose from a base of 21 companies in 2003 to 40 in 2006, with such progress expected to continue throughout 2008. It is in line with the target set for 2013 that 100 will achieve this level of spend. Enterprise Ireland client companies spending €100,000 or more on research and development rose from 462 in 2003 to 620 in 2007, with such progress expected to continue throughout 2008. It is also in line with the target set for 2013 of 1,050 companies spending €100,000 or more on research and development projects.

Separately, 54 research and development projects were supported by the IDA in 2006, with about 50 to be supported in 2007 and 2008. Some 140 projects were approved in 2005 under Enterprise Ireland's commercialisation fund, which rose to 155 in 2006. That progress is expected to continue throughout 2008. We have more licensing between third level institutions and industry, and there is also patenting etc. under Enterprise Ireland schemes.

A host of companies, such as Lucent Technologies, Wyeth Biotech, Guidant, Cisco, GlaxoSmithKline, Pepsico, Intel, IBM, Bristol-Myers Squibb, Servier, Merrill Lynch, Merck Sharp & Dohme, Dawn Farm Foods and others, such as Bell Labs and Georgia Tech, are now choosing Ireland as a home for their research activity. That would have been unthinkable in the past, so we are making the transformation to a knowledge-based economy, and one that is looking to create Ireland as a very significant and attractive location for investment in science and technology.

Parallel with this is the key target of upskilling the labour force. Last year we published the national skills strategy, which set ambitious targets for upskilling the population. The national training fund will provide €402.9 million in 2008 for the training and upskilling of the labour force, directed at a range of activities, such as Skillnets and FÁS. FÁS will also receive substantial Exchequer investment for an extensive range of programmes addressing the needs of both individuals and companies. In total, the body will receive more than €1 billion in 2008 from the national training fund and the Exchequer.

In addition to upskilling those already in the workforce, FÁS funding will provide training and support for people seeking employment including people with disabilities. Funding for specific employment and training programmes for people with disabilities will amount to €77 million in 2008. People with disabilities can also avail of mainline FÁS programmes and services. Funding for FÁS employment programmes, including community employment and jobs initiatives will total €419.5 million in 2008.

The promotion of appropriate strategies to encourage a competitive economy is balanced, in my Department's pre-budget Estimates, with the protection afforded to consumers and workers. The establishment of the National Consumer Agency on a statutory basis this year was a watershed in the drive to protect consumer rights. Funding for the agency has been increased by €2 million in the 2008 pre-budget Estimates, to €10.397 million, an increase of 24% in the 2007 allocation.

The increased allocation to the NCA for 2008 will allow the agency to deliver on its mandate, particularly in areas such as consumer advocacy, research, information, enforcement, education and awareness. It will champion the cause of the consumer while working with businesses to help them understand and comply with their regulatory obligations.

Funding for the National Employment Rights Authority has been increased in 2008 by more than €1 million, or 12%, to €9.6 million. This increase takes account of the recruitment of additional staff which has been ongoing in 2007. The establishment of the National Employment Rights Authority was a key element of the social partnership agreement, Towards 2016. The agreement provided for a trebling of the number of labour inspectors to 90 by the end of 2007 and for associated legal accounting administrative support staff. The labour inspectors will be based in Dublin, Cork, Shannon and Sligo, as well as the new head office of the authority in Carlow, which opened in July. That was a good example of successful decentralisation.

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