Jimmy Devins (Sligo-North Leitrim, Fianna Fail)

There can be very few people who are unaware of the difficult circumstances facing the Irish economy. This Government has had the unenviable task over the past weeks of taking some very hard decisions and making some very stark choices. We have remained resolute to our task and it has taken both courage and conviction to devise the package of reforms that has been presented in yesterday's budget. While the announcements contained in the budget include strong medicine, we are today in a much better position in that the diagnosis has been made of the ills of the economy and the prescription written. The economy has been put on the road that will, in time, lead to recovery.

While tackling the budget the emphasis has been on fairness, economic renewal and building a better future. In this context, the elements of the budget covering science, technology and innovation have sought to provide a proper balance between the scarceness of resources available and the need to keep up the effort to develop an innovation-driven economy that will allow Irish enterprise achieve competitive advantage and increase productivity and jobs in the future. This has been delivered. Funding has been concentrated in the areas where greatest economic benefit can be achieved speedily. In a difficult economic environment, the science and technology subhead of the Department of Enterprise, Trade and Employment Vote has been kept at a level above the level of spend in this area in 2008. What is being done is to hold the line in terms of the level of support provided to allow the consolidation of the investment made over recent years in the area of research, development and innovation.

I particularly welcome the introduction of a scheme of tax relief for the acquisition of intangible assets, including intellectual property. The details of the scheme remain to be worked out by the Department of Finance in conjunction with the Revenue Commissioners. This measure will help to attract high quality employment to this economy.

The expenditure provision for science, technology and innovation provided in the 2009 budget of my Department is €311 million, which is €2 million more than was spent under this heading in 2008. In addition, a further €6 million will be made available as capital carried over from the 2008 budget allocation, allowing for a total science, technology and innovation budget of €317 million for 2009, which is a 2.6% increase on last year's spend. The fund of €317 million will be used by the development agencies Enterprise Ireland and Science Foundation Ireland, and supplemented with IDA funding to do the following: provide an important support to Irish business in their efforts to be innovative and stay competitive by increasing in-company research and development; assist IDA Ireland in winning research investments for Ireland; promote the commercialisation of research and bring the outputs of Ireland's research base to the marketplace; and strengthen collaboration between industry and the education sector, and consolidate the investment made in Ireland's third-level research base.

Enterprise Ireland will receive a science, technology and innovation budget of €133.7 million. This, together with a capital carryover sum of €500,000, will give a fund which is a 3.5% increase over the 2008 spend. This funding will enable the agency to provide all-important supports to industry with a sharp focus on identified industry needs, and seeking to create a real impact in terms of the commercial spin-off from research and development. This level of support provided in the budget will drive industry-led research, enhance collaborations between third-level institutes and companies, and maximise the commercial potential of publicly-funded research. The development of a dynamic and innovative enterprise sector will be a key factor in creating and maintaining employment in these difficult times.

Enterprise Ireland will continue to promote and foster start-up companies with the potential to develop new products and services and create high-value jobs. Through its suite of research and development programmes, Enterprise Ireland is ideally placed to provide financial support and advisory assistance on the ground for young and innovative companies. This investment will stimulate growth of more competitive companies and ultimately create long-term sustainable employment.

Enterprise Ireland has adopted a lead role in driving the effective commercialisation of research in Ireland through stimulating collaboration between industry and the third-level institutes. Through its commercialisation fund, Enterprise Ireland will secure the commercial potential of the output from our investment in the Irish research community to the benefit of Irish companies. By encouraging greater collaboration between industry and third-level research through initiatives such as innovation vouchers and innovation partnership, Enterprise Ireland will further the development of an innovation culture among small and medium enterprises.

Science Foundation Ireland funding will be €170.5 million. In addition, a sum of €5.5 million in capital carryover will be available, giving a total budget of €176 million, which is a 3.2% increase on last year's spend. This allocation will enable SFI to continue to build a critical mass of internationally competitive research teams in the sciences and engineering underpinning biotechnology, information and communication technologies and energy. This funding will primarily assist SFI to continue to support and grow its centres for science, engineering and technology, known as CSETs, and the strategic research clusters, SRC, programmes. SFI currently supports a total of 26 centres with a number of new CSET and SRC awards anticipated later this year. It is through these industry-embedded research groups, which are formally linked to more than 150 multinational and small to medium high-tech enterprises in Ireland, that SFI supports the retention of employment of more than 60,000 people in high-value jobs here.

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