John Gerard Hanafin (Fianna Fail)

I second the amendment outlined by Senator MacSharry. In recent years we have seen higher interest rates, higher oil prices, a depreciation of the dollar and sterling, the opening of the economies of China and India, the subsequent loss of manufacturing jobs to those countries and a slowing of growth in our trading partners. Despite all this, the only thing we have seen is a decrease in the growth of this economy.

We have a remarkably robust and well-managed economy. We are looking at 3% growth at the moment. I was delighted to hear Senator Quinn say he was asked to go to Panama to explain how a small country that is probably similar in size and population to Panama and Estonia has managed to develop. While it is always good to welcome proposals about how things can be done better, there is no doubt that in only two decades, we have escaped an invidious legacy of involuntary emigration, joblessness, inflation and high taxation while effectively doubling to considerably in excess of two million the number of people engaged in productive employment.

This transformation has delivered the standing we now enjoy as a dynamic, prosperous and high participation economy at the very vanguard of the globalisation era. Ireland is a location possessed of unrivalled attractiveness to investors and workers alike and a success story which continues to unfold as both a model for others and the envy of our international peers.

The doomsayers among journalists who said that things could go wrong were right because things can go wrong. Notwithstanding that, our economy has brushed off every challenge and has shown itself to be remarkably robust in an economic downturn. It is a well-managed economy at that.

It is clear that success brings with it new challenges and opportunities but success also equips us with the capacity and resolve to meet these new challenges and opportunities most effectively. Investment is essential to help us meet emerging challenges. The economy is very strong with gross domestic product and gross national product growth rates that are among the best in the world. The Government recognises that to remain competitive, we should increase the added value of our economic output. To achieve this, we need to focus on high technology industries which are driven by significant investment in research and development. The medical device industry is clearly one of these sectors in which future technological development can be exploited.

I welcome that the first stem cell clinic, which is an adult stem cell clinic, opened recently in Germany. It is interesting because it no longer involves research. It is an actual clinic where people can go to receive treatment. This is a very important development and I see a role for Ireland in this. A few years ago, I called for Ireland to engage more in this area because it is the future. It involves the effective use of adult stem cells which is where the proven successes have arisen to date. This country still has an opportunity to develop in this area.

The Government is committed to the development of Ireland as a world-leading knowledge economy founded on research, development, innovation and a highly developed skills base. It is delivering substantial investment in cutting-edge research, development and innovation and has put in place a number of key structures and strategies to drive our development in this area, including Science Foundation Ireland and the programme for research in third level institutions.

With the launch of the Strategy for Science, Technology and Innovation 2006-2013, the Government reiterated its commitment to the creation of a knowledge-based economy. The goal of this ambitious strategy is to position Ireland as a key player in research on the world stage. The strategy envisages significant increases in public expenditure on research and development over the next eight years. During this period, we will double the number of PhD graduates in Ireland; develop a targeted and focused programme of research activity across a range of key sectors of the economy, building on our proven expertise in information and communications technology, pharmaceuticals and biotechnology; enhance arrangements for the capture, protection and exploitation of intellectual property; further develop the opportunities for collaboration between industry and academia; and create a dynamic environment in which to attract, produce and retain world-class researchers and research projects. The clearly stated aim of the Government's strategy is that by 2013, Ireland will be renowned internationally for the excellence of its research. We will be at the forefront in generating and using new knowledge for economic and social progress within an innovation-driven culture.

It is part of what we are discussing today. It is important to mention that this Government consistently ensures the less well-off have benefited from its achievements. This was made clear by the recent budget where, again, concern was given primarily to those who are less well-off. In an economic debate, it is good to restate that.

The Government is also conscious that strategic management initiatives are essential for better quality public service delivery. Excellent public service delivery is essential on social grounds because of the importance of the service provided by the Civil Service and the public service. It is also essential for economic reasons because of the important contribution of the work of the Civil Service and public service to national competitiveness and sustainable development. The cost of the Civil Service and public service, the extent and cost of Government programmes and the combined effects of these on the economy, particularly its competitiveness, require that financial management systems be comprehensive and effective and ensure that value for money is achieved.

The principles underpinning the Government's approach are to ensure every organisation has efficient flows of financial information, vertically and horizontally, so that decision making is enhanced by the availability of up-to-date, accurate and comprehensive financial information; assist managers by providing quality financial systems and giving them sufficient flexibility in the management of resources allocated to them; provide incentives for management to achieve greater efficiency in the management of their resources; ensure financial responsibility is delegated as close as possible to the point of delivery of service so that empowerment is not just a buzz word but a reality; and ensure a balanced focus on the relationship between the outputs and the inputs required to achieve them.

The new national development plan will see a deployment of resources in supporting the productive capacity of our enterprise sector, equipping it to compete effectively in an increasingly knowledge intensive and interconnected global economy. At a point in our national development where our future prosperity has never been more dependent on unlocking the talents of each citizen, the Government is reinforcing the emphasis on skills and training to ensure adaptability to the accelerated change we face.

There is no doubt value for money is a hallmark of this Government. The ambitious plan is to ensure the national infrastructure in terms of time and costs is significant value for money. In this regard, it is a top priority during the lifetime of this Government to ensure we get value for money in respect of the moneys we spend. We are achieving this by all recognised standards.

This Government has been more than just a manager of an economy. It has been flexible and innovative. I refer in particular to the financial services sector. During 2007, the moneys under management in the Irish Financial Services Centre exceeded €1 trillion for the first time. It provides a significant income for the Government, which heretofore went to other countries, as it manages funds in this country and of other countries.

This Government is getting international recognition from people who are internationally respected. The country has become a location The Economist has described as being the best place to live and work in the world. Instead of listening to the Jonahs, we should consider the fact that despite the difficulties, we have thrown every burden off our shoulders and continued to grow and develop.