Michael Ahern (Cork East, Fianna Fail)

The underpinning role of the social partnership process and the range of commitments agreed under Towards 2016 is also acknowledged. The National Development Plan 2007-2013 further demonstrates a level of investment and a range of measures across the policy spectrum which reinforces this strategy. The European Commission places Ireland in the first tier of member states with the strongest record and progress in pursuit of the Lisbon goals. As far as the Department of Enterprise, Trade and Employment's responsibilities are concerned, Ireland scores highly in terms of best enterprise environment due to the ease of starting a business, good access to capital and relatively low levels of administrative red tape.

The significant sums the Government proposes to spend on science, technology and innovation over the lifetime of the National Development Plan 2007-2013 will bring Ireland into line with research and development performance in leading countries and enhance the development of a knowledge-based economy. Our development agencies, particularly Enterprise Ireland, are committed to delivering on these objectives. Enterprise Ireland has achieved significant success in reaching and exceeding its own ambitious targets over 2005-07. Growth in global markets through the internationalisation of Irish companies is a core element in our strategy towards sustaining wealth and employment creation in Ireland. This process of transformation will continue to be relentlessly driven. Support for this transformation will continue to involve extensive engagement with the SME sector.

During last night's debate it was stated that the indigenous sector has been neglected. This is quite untrue. It totally misrepresents the policies that have been introduced to reflect the recommendations of the Small Business Forum. It also completely ignores the extensive reorganisation that has taken place in Enterprise Ireland and other agencies to provide more effective programmes and opportunities to the indigenous sector.

Finding new ways to compete, as well as restoring cost competitiveness, presents a major challenge and an opportunity to develop an innovation driven economy and society which maintains competitive advantage and increases productivity. Innovation has no policy borders. We will, therefore, continue to strive for consumer-driven innovative products and services as well as developing new business models, organisational structures and skills for innovation.

The services sector is an emerging area where innovation can be better exploited, for example in the area of environmental goods and services and renewable energy. New thinking on services innovation is required to adapt to new models of economic activity emerging in the globalised marketplace.

As a small open economy Ireland is particularly vulnerable to external factors which weaken its cost base. The solution lies in supporting innovation, improving the productivity of labour through balanced regulation, increasing knowledge and skills and in playing to our strengths by tapping into our innate ability as networkers and for building partnerships. Success does not depend on Government and policy alone. It requires a joint commitment by enterprise, society and Government to promote innovation in every sphere of business and public service.

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