Dáil debates

Thursday, 2 May 2013

Industrial Development (Science Foundation Ireland) (Amendment) Bill 2012 [Seanad]: Second Stage (Resumed)

 

11:40 am

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy John Perry, to the House. Like my colleagues, I also welcome the opportunity to discuss the major role research and innovation services play in contributing to the knowledge economy. I am pleased to note that pupils from St. Mary's national school, Edgeworthstown, one of the largest schools in County Longford, along with their principal, Ms Helen O'Gorman, and Ms Anne Belton O'Reilly, are present in the Gallery. Ms O'Reilly's family has had associations with this House since the foundation of the State, including the period when semi-State companies such as Bord na Móna and the ESB were established. These companies did the country proud by helping to build the foundations of the State before we lost the run of ourselves during the Celtic tiger years.

Last year, the Government announced that it would redirect spending to 14 areas that would create the maximum number of jobs, with a strong focus on information technology and innovation in manufacturing services, business and life sciences. At the time, I expressed some concern about expenditure on stem cell research. However, we have since been given clarity on the issue, which is welcome.

This is an important Bill which, when enacted, will provide for the extension of the remit of Science Foundation Ireland to allow it to fund research which has the greatest potential to create and deliver jobs and growth and will reap maximum benefits from research funded projects by bringing them closer to the market. A powerful and well functioning research or innovation system has long been recognised as central to regional and county economic development and the foundations of a dynamic and diverse economy. It is, therefore, vital that the Shannon and midlands region, particularly counties Longford and Westmeath, maximise its research and innovation capacity and draws on the knowledge and research intensive services that will become available as a result of the legislation. This is especially needed in the current challenging economic climate.

In 2011, the knowledge intensive services, KIS, funded the development of the research and innovation project under the INTERREG Atlantic area programme through the BMW region where I live. This was to update the 2004 audit of innovation and extend the analysis to the knowledge intensive services sector comprising of research and development, information and communications technology and management support services. For the first time, knowledge intensive services innovation and technology and knowledge transfer providers from both the private and public sectors were surveyed in the BMW region. The project also gave the region new insights into the supply for knowledge intensive services and the current status of the innovation supports system as well as the impact of the innovation supports provided by the lead national agencies at regional and county levels.

A report produced as part of the project made a number of key findings on knowledge intensive services and innovation capacity in the region. While knowledge transfer and innovation support activities are a priority in the region, funding limitations pose challenges. Moreover, although knowledge transfer and innovation support activities, such as incubation centres, are emerging as strategic priorities for higher education institutions, the lack of core funding for these services is a major barrier and limits their capacity to sustain delivery of knowledge intensive services to business. Internal culture also remains a serious barrier to engaging in technology and research continues to prevail over industry linkages in terms of the priorities for higher educational institutions, as identified in the earlier 2004 audit.

The report also notes that there remain few and limited incentives for staff to engage and limited processes to facilitate engagement, in particular in the institutes of technology sector. Other problems encountered were barriers to accessing knowledge intensive service providers, a lack of awareness about available funding and difficulties in accessing appropriate sources of funding. The same barriers can no doubt be found at national level.

In discussions with stakeholders, including both businesses and the staff of higher education institutions, repeated calls were made for a one stop shop or an appropriate agency to act as an intermediary between business and knowledge intensive experts in academia. The agency should be staffed with qualified well experienced and appropriate people. I hope the Bill will go some way to highlighting and resolving this matter.

We urgently need innovative proposals to counteract the neglect of smaller counties such as Longford by State agencies, particularly the IDA, especially given the increasing number of people on the live register and the loss of economic stability in the region arising from the closure of several industries and businesses.

According to the most recent live register figures, the number of people signing on in County Longford stands at 5,064 or 1.8% of the total number of those who are unemployed. The corresponding figure for County Westmeath is 10,302 or 2.4% of the total number of individuals on the live register. This is the position in the aftermath of a number of closures that were massive blows to the economic viability of the midlands. I refer, for example, to the ill-thought out closure of Army barracks, small schools, rural Garda stations etc., which has given rise to the removal of a large number of full-time Sate-supported jobs from the local economy. The type of job losses to which I refer in the Longford-Westmeath area are equivalent to the loss of three major industries. They occurred at a time when the Midlands is receiving less than its fair share of job announcements. I hope this will change.

There there is a history of Government neglect of the midlands which dates back over ten years. The Longford and Mullingar areas were shamefully disregarded in respect of the natural gas scheme and companies operating in the midlands have been left on the hind tit in respect of important facilities. Ten or 12 years ago when gas was being brought from the west coast to Dublin, there was a proposal that the route should run through Longford and Mullingar. However, following political intervention, the gas was brought via Athlone. While I have no difficulty with the latter, I am of the view that a spur line could have been put in place to Longford and Mullingar. The gas line was also run through a place called Clara in County Offaly, the home village of a former Taoiseach. That was political opportunism at its worst.

Science Foundation Ireland's current remit is to fund oriented research teams to carry out basic research in institutions and individual research teams which carry out high quality research. While the Bill includes a function for Science Foundation Ireland to promote the study of education in and awareness and understanding of science, technology, engineering and mathematics and to foster a greater public understanding of the physical sciences, engineering and mathematics and their value to society, its main focus must be about jobs, transforming Ireland and getting people back to work. In my opinion, most sections of the Bill have been prepared with a view to maximising growth, encouraging job creation and facilitating the transformation and modernisation of our systems. The Bill sets out further steps on how we plan to grow the economy and eliminate waste. The latter will enable us to adhere to our promise to keep income tax low. The Bill also flushes out the core elements of our policy platform which was set out in the programme for Government in February 2011 via the NewERA investment plan.

These are very difficult times for our people and the decisions taken in respect of recent budgets were very difficult. This Government has focused on budget cuts rather than job-destroying tax increases. We have favoured more savings as against fewer taxation measures. Specifically, we have not introduced any hikes in income tax or in taxes on jobs - for example, employers' PRSI - and we have protected the 12.5% rate of corporation tax. At the same time, we have protected old age State pensions and other social welfare care payments and set about tackling the massive levels of administrative costs and fraud.

There is an issue which I have raised on many previous occasions at various fora and which I am going to raise again now in the context of the Bill before the House. I am strongly of the view that we should, for several reasons, consider developing the computer technology and Internet skills of the unemployed by encouraging them to take after-school classes. This would greatly benefit them and their communities and would provide them with a sense of worth and of belonging to those communities. Both of the latter are extremely important for people who, through no fault of their own, have lost their jobs. I would like the Minister to take on board my suggestion in this regard. I am disappointed that the subject of computer skills is still not included on the leaving certificate examination curriculum. I would be delighted if the Minister of State could use his good offices to urge the Minister for Education and Skills to see to it that it is included. Perhaps this matter might be discussed by the Cabinet in the not too distant future.

We have a highly educated, highly skilled and highly trained work force in the midlands, the members of which are more than willing and able to meet the requirements of Science Foundation Ireland in order that it might fund research projects before proceeding with them on a wider geographical basis. People in the Longford-Westmeath area are keen to attract high-tech foreign manufacturers and foreign investment research projects, particularly as the level of unemployment in the midlands is at an unprecedented level. Thousands of those on the live register in Longford and Westmeath are crying out for urgently needed jobs. There are huge numbers of well educated young people in the area who, like their parents, are frustrated at the thought that they will be obliged to emigrate as a result of a lack of job opportunities. I want the position in this regard to change quickly.

Section 5 of the Bill gives Science Foundation Ireland the legal power to extend its activities beyond the borders of the State. This will allow it to provide direct funding to institutions in Northern Ireland and beyond. I would appreciate some clarity in respect of the Minister's and the Government's intentions in this regard. While I do not want to place obstacles in the way of the Bill in the context of funding projects in Northern Ireland and elsewhere, I am of the view that we cannot ignore what is happening in this regard. It is essential that the Government does its homework with regard to its proposals for the midlands. My job, as a representative for the Longford-Westmeath constituency, is to ensure that any Bill relating to industrial development benefits both my constituency and the midlands in general.

In 2009 my party's economic team held a number of meetings with business leaders who work at the coalface in the midlands and outlined Fine Gael's policy approach to the economic crisis. The business people who were in attendance also shared their ideas and plans for economic recovery and job creation in the midlands. A crucial meeting was held in the town in which I live under the banner "Working Together". At that meeting, which was chaired by none other than former Deputy George Lee, we pooled ideas and aired our views in respect of the future economic viability and development of the midlands. I urge the Minister to get cracking on the plans and ideas for job creation Others present at the meeting - and at a similar meeting that was held in Athlone - were the Taoiseach, Deputy Enda Kenny, the Minister for Jobs, Enterprise and Innovation, Deputy Bruton, the Minister for Transport, Tourism and Sport, Deputy Varadkar, and the Minister for Agriculture, Food and the Marine, Deputy Coveney. All of these individuals are now in control of various areas of responsibility and they must seek to be the driving force in supporting job creation and business development in the midlands. I want to see a more visible presence on the international stage in the context of efforts to seek job contracts for the midlands, particularly the Longford-Westmeath area.

As I have done since it took up office, I demand that the Government and the Department of Jobs, Enterprise and Innovation prioritise the area for job creation and provide assistance to existing industries and companies, particularly in the Longford-Westmeath constituency, where my bedrock of support as a representative lies. The Department needs to set up an inter-agency group or task force, one with teeth, to develop the area. What was promised in 2009 must be delivered. I was shocked to learn that IDA Ireland had brought no foreign delegations to County Longford in the past eight years. Government members should exert more political clout and work together to address this problem.

Proposals have been made regarding wind energy in the midlands. It is a topical issue in many communities and poses a problem for the midlands. A number of companies are holding discussions with farmers. It is important that seminars be set up to inform people in the midlands of how wind energy is to be promoted and developed. People want their properties safeguarded. One solution is to provide turbines in cutaway bogs. It is important that there be proper guidelines to safeguard communities.

Deputy Clare Daly referred to wave energy, a sector that we have an opportunity to develop. When I spoke with the German energy Minister last year, he told me that if the Continent had Ireland's location, it would have developed wave energy a long time ago. We need to work on this area. I hope that the Bill will be broadened to incorporate the development of wave energy, our location for which is ideal. Not only could we supply Ireland with sufficient energy, thereby attracting industry, etc., but we could be the leading light in Europe and export our energy to the UK, France and other European countries in the same fashion that we export cattle and other products.

I thank the Leas-Cheann Comhairle for my time. I am pleased my colleague from Sligo-North Leitrim, the Minister of State, Deputy Perry, is in the Chamber. A capable man, he will take note of my concerns regarding Longford-Westmeath. I hope that action will be taken sooner rather than later.

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