Paul Coghlan (Fine Gael)

I welcome the Tánaiste and the Bill. The Tánaiste has outlined the background to the establishment of the SFI from its small beginnings as a sub-division of Forfás in 2000. Establishing Science Foundation Ireland on a statutory basis is a radical but very welcome departure as the country seeks to build a global knowledge-based economy. It is obvious, as the Tánaiste has pointed out, that the reason for the establishment of the SFI is that if Ireland is to maintain its recent economic success, it must continue to raise the level of excellence and quality of the industries located here. This is because Ireland can no longer compete on a cost basis with other, cheaper economies around the world. We can only compete on skills and quality. The SFI will contribute to improving standards in both areas by attracting first-class researchers to live and work in Ireland. These researchers will also support the development of a thriving ecosystem of world-class research in Ireland that will lead to new discoveries and innovations and also be attractive to industries which need these scarce skills.

In using the budget allocated to the SFI to attract a critical mass of excellent researchers to research laboratories and third level education institutions in Ireland, the SFI offers Ireland the prospect of competing and winning in the global race for knowledge in both biotechnology and information and communications technology. In recruiting these leading researchers the SFI also aids efforts to continuously raise skill levels and competencies in Ireland. This is a critical requirement if we are to have the personnel and skills required to meet the demands of the next phase of our country's development. The establishment of the SFI complements similar departures in successively legislating for the establishment of the IDA and Enterprise Ireland, organisations which have played a major role in recent times in the development of the economy and, in turn, our society. SFI activities will be complementary to the work of the IDA and Enterprise Ireland in their efforts to move Irish companies up the value chain.

The funding allocated to the SFI is a vital component of the €2.54 billion investment in research, technological development and innovation in the National Development Plan 2000-2006. The overall allocation to Science Foundation Ireland is €635 million. Most knowledge-based economies and societies, such as Finland, which has a history and population similar to our own, are built around world-class research institutions, skills and abilities. Correctly exploited and utilised, innovation and world-class research can be harnessed to the benefit of future generations in Ireland. Accordingly, the establishment of the SFI and the funding allocated to it are an investment in the future growth of the economy. If we do not follow through on these investment requirements, we may well fall behind in our efforts to establish Ireland as a leading player in the global knowledge-based economy.