Micheál Martin (Cork South Central, Fianna Fail)

Without high-level research we cannot hope to be a success in the future. We have been world class at exploiting new ideas but we must also become world class in generating those ideas. This is why we have prioritised research and development policy consistently during our time in office. This has never been a substantial item on the Opposition's agenda and it has required major resources from the Government to be allocated in the face of many other more prominent demands but this has been the right policy.

If Deputy Varadkar were to take the time to check the record, he would see that we created every single element of today's research support infrastructure. When I was Minister for Education and Science, I was able to end the situation where the total research funding in that Department was zero. When I announced details of a dedicated fund for science and technology in education, the response of the then spokesman, Deputy Richard Bruton, on behalf of Fine Gael was first that we were proposing too much and then that we were proposing too little. This failure to credibly engage with the Government on research policy has continued to today. To challenge the Government on this shows the overall lack of credibility or substance in Fine Gael's addiction to attack-led policy making. I established the programme for research in third level institutions, PRTLI, which made an enduring impact on the Irish landscape.

The recent publication of world university rankings by the prestigious The Times Higher Education Supplement shows universities here are reaping the benefit of the increased investment from PRTLI, SFI and other funding sources. Trinity College has moved up to 53rd place, while UCD has broken into the elite 200 for the first time, at 177th. UCC and DCU have risen more than 100 places into the top 300.

All objective reports show that Ireland has been making dramatic strides forward in supporting research activity and preparing it to have a substantial economic impact. The strategy for science, technology and innovation published this year is a significant roadmap to a knowledge economy. Over €8 billion is earmarked for this area, representing a trebling of funding on the previous six years.

In the field of education, the Minister and the Department of Education and Science are implementing many radical changes. Through the strategic innovation fund, our universities are being rewarded with funding based on quality rather than quantity for the first time. The expansion of over 30% in student numbers, which we have supported in third level participation, is being underpinned by dramatic investment in the range and quality of courses and infrastructure.

Each of the agencies under my Department is playing a significant part in prompting and supporting the rapid expansion of world class research. The work of SFI is a great example in this regard. Last month, I announced the result of funding competitions for groundbreaking industry and academic projects. The groups funded will be co-operating with a total of 48 distinct companies and have captured the interest of both multinational corporations and indigenous companies. As a result of this investment in these new research clusters, approximately 490 highly qualified personnel, including principal investigators, post doctoral students and PhD students, will participate in cutting edge research projects.

SFI has shown how we have created funding programmes which combine support for the highest international academic standards and industrial collaboration. To date, over 400 different companies are collaborating with scientists supported by SFI. Commissioner Potocnik and other international guests at the recent SFI science summit talked about Ireland's growing reputation as a centre of advanced research. This was not mentioned by Fine Gael in its opening to this debate because it has shown no interest in the work of researchers and institutions which are providing the foundation for our future competitiveness.

We are fully conscious of the need to ensure that research is integrated into our economy and our enterprise sector. To that end, it is my intention that we will take initiatives to develop sustainable career paths for researchers and improve the ability of enterprise to employ the PhDs emerging from the increased investment in world class research. These initiatives help shape a situation where approximately 70% of PhD output will find employment in enterprise and industry.

Progress is not confined to SFI or schemes funded by the Department of Education and Science. IDA Ireland is actively encouraging companies already here to undertake research and development activities in Ireland. A total of 54 research and development investment projects, involving a total investment of almost €500 million, were supported by IDA Ireland in 2006. These investments will create the jobs for highly skilled people and many of the companies are working with SFI-supported researchers in higher level institutions. Recent indicators, both national and international, show that we are clearly moving in the right direction and that significant investment is beginning to have an impact. The total research and development spend across all sectors of the economy increased by 14.3% to over €2.2 billion in 2006.

Realising the commercial potential of Irish-based research and development is a major priority for the Government. Our aim is to accelerate the commercialisation of research by stimulating and facilitating interaction between industry and the research infrastructure. Under Enterprise Ireland's commercialisation fund, 155 projects to support and develop programmes with commercial potential were approved last year.

We have also taken a special approach to smaller companies, which are, in terms of numbers, the backbone of our enterprise economy. Earlier this year we established the innovation voucher initiative, specifically for micro-enterprises, on the recommendation from the Small Business Forum. Already, 350 companies have been awarded innovation vouchers, which they can use to explore business opportunities or problems with institutes of technology or universities. It is my intention that we will move to expand scope and level of support relating to this initiative.

European Commission approval of the State aids element of the revised IDA Ireland and Enterprise Ireland research and development scheme has recently been secured. The newly designed schemes will be launched early in the new year. It is intended that the more streamlined schemes, with enhanced budgets proposed, will facilitate more companies to take a step forward in competitiveness through innovation.

It is a simple fact that no European country has ever gone so far so fast in respect of developing its research capacity. Starting from an incredibly low base, we are now getting places. One small example of this can be seen in the critical area of immunology, where the most recent survey shows that Irish scientists ranked second in the world for citations in international journals. Developing and using knowledge is core to our competitiveness and we are on the right track in this regard.

While advanced research is key to competitiveness, so too is the challenge of helping all people to achieve and renew a high level of skills. Labour markets are changing at an increasingly fast pace. We can either ignore these changes or support people and businesses in responding to them. This is why labour market programmes will continue to receive a high level of support.

Fundamentally, our human resources are at the centre of our competitive advantage. It was because of the importance of education and skills for our economic development that I launched a national skills strategy. The latter sets out clear objectives for developing Ireland's human capital, through upskilling, training and education, for the period to 2020. It is estimated that 1.4 million people in our workforce today will still be there in 2020. The majority of these, in excess of 300,000, currently do not possess a leaving certificate or equivalent qualification. Our strategy will see an additional 500,000 employees being upskilled by at least one level on the national framework of qualifications by 2020. Resources allocated to this area have, in only three years, increased by almost 900%. As a result, this year 55,000 people in employment will be supported in upskilling by FÁS and Skillsnet. Under the national development plan, we will invest approximately €2.8 billion on upskilling Ireland's workforce. This policy is being supported by funding and it is delivering action.

The competitiveness of the economy also requires the significant upgrading of our physical infrastructure. This is happening at an unprecedented rate. The completion of the projects funded under the NDP will significantly raise the productive capacity of our economy and are already having a positive impact. We are investing close to three times the EU average on physical infrastructure. We are coming, in historical terms, from a much lower base than our European counterparts in this regard. However, when travelling from Cork to Dublin I have noticed the difference. The world does not begin and end in Dublin but there have been significant changes here. Throughout the country one can see the manifestation of the investment on physical infrastructure. The plan for the period up to 2010 is also in place.

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