Jim Walsh (Fianna Fail)

I move:

That Seanad Éireann welcomes Government initiatives to support the further development of sustainable information and communications technologies in Ireland with a view towards creating sustainable economic opportunities in new information and communications technologies sectors.

Cuirim fáilte roimh an Aire Stáit agus molaim an rún atá os ár gcomhair anocht. In proposing the motion from the Government benches, I note it concentrates on an area that will be critical to our economic well-being in the future. I am disappointed by the amendment that has been put down. I am sure my esteemed colleague opposite, Senator O'Reilly, for whom I have the highest regard, was not instrumental in the wording of the amendment. That amendment in a critical way homes in on a narrow aspect of this issue, namely, the roll-out of the broadband network, which is obviously very important but is only one part of the overall thrust of what the proposal is about.

We are in interesting economic times and there are many challenges across the global economy to various states in regard to ensuring that the economic basis they have built will survive the current recession. In addition, the challenge for Ireland is to ensure we position ourselves in the right areas in order to advance the unprecedented economic growth which we have seen here in the past ten to 15 years, which brought us almost full employment and one of the highest GDPs in the Western world. While we are taking a cold shower at present with the global downturn, at the same time we must focus in a positive way on ensuring not only that we meet the current challenges but that we lay the foundation stones for our future economic well-being.

It is fair to note that our expertise in the area of information and communication technology and the pharmaceutical industry was a significant part of the fuelling of the growing economy we enjoyed in the past decade or two. This came about through investment in research and education going back to the 1960s, when we laid heavy emphasis on secondary education in particular, as well as the taxation policies which were a driver of so much of the foreign direct investment we saw coming into Ireland. The fact we were members of the EU was also critical to the attraction of that foreign direct investment.

In the past, Ireland would have been noted for its emigrants and for how well they worked, often in unskilled areas because they had little education. Much of Britain and the United States was built on the toil, effort and commitment of those workers. Today, I see a more educated cohort of young people who work extremely diligently and over long hours, applying themselves to their duties and responsibilities. This gives me confidence as we move forward and will provide a significant impetus to restoring our economic fortunes and building on them in the future.

It is important to acknowledge that the factors which helped us in the past to achieve the success we achieved may not altogether be sufficient to deliver the vision of the knowledge economy we are now targeting. Competition within the area is fierce and many developed economies share the same vision. Therefore, we should continue to focus our investment in the areas of research and development and higher education. They will be essential in attracting new enterprises and laying good, solid foundations in future. We have also targeted the green agenda and renewable energies which are fundamental to future success. There is a link between information and communication technologies, ICT, and renewable energy and it is critical to marry these areas. There would be potential benefits from such a move.

Our over-dependence on fossil fuels must be reduced because it is affecting greenhouse gas emissions which is a significant factor but not the only one. There is a body of evidence which shows clearly that fossil fuels are a finite resource and will not be with us past the end of the century. Therefore, there is a compelling force, not only on us, but on all developed economies, to ensure alternatives are available.

The White Paper on energy in 2007 set ambitious targets for the development of sources of renewable energy in Ireland. A range of Government actions, including the ocean energy strategy published in 2008, form a very important part of the plan. Opportunities taken will raise Ireland's profile in this area. The emphasis on research will make it attractive for companies and corporations to view Ireland as a location for research and development and other high technology developments. Hopefully this will not only apply to overseas companies and we can develop our own entrepreneurial spirit within the country. It is important to ensure an indigenous presence in this developing area as well. We have developed this area very successfully, especially in the last tranche in which we laid such emphasis on the whole area of computer technology. There is an onus on us to develop a lower carbon economy and mobile communications.

Every day we read in the newspapers and see on television examples of the current doom and gloom and sometimes we loose sight of the many success stories here. There is in the order of 210 foreign-owned ICT companies in Ireland, including some of the major world players such as Microsoft, Intel, IBM, Dell, Google and many others. However, there are also 660 indigenous software companies from a wide variety of sectors including financial services, security, animation, health care, education and so on. Turnover in this sector in Ireland is approaching €55 billion, which is substantial. The ICT industry accounts for half of all Irish business investment in research and development. The Government allocated €8.2 billion in 2006 for research for the period 2006 to 2013. There will also be a significant sum spent on sustainable energy and research. It is important to ensure enough money is spent on research and development, which is fundamental to positioning ourselves properly to avail of this area in future.

However, the mobility of multinational companies and their ability to move from one jurisdiction to another is something of which we must be mindful. While many companies carry out research and development here because of financial supports, the taxation system, our educated workforce and to avail of our expertise in these areas, it is crucial that we hold the subsequent downstream development arising from the successes to ensure it generates employment here. This is a separate challenge for us and this is why restoring and regaining our competitiveness is of such crucial importance.

I have stated many times in the Chamber that our wages are exceptionally high and I am concerned about the level compared to other countries. We must ensure we can meet the competition from abroad as it positions itself to attract such industry.

The impact of information and communication technology on emissions reduction is at the embryonic stage. The calculation of our greenhouse gas emissions reductions using ICT has involved the OECD, the EU and other bodies. It is imperative that this marriage is successful. If we can position ourselves as one of the primary drivers in this area on the global stage I have no doubt the fruits of the investment and the vision will become apparent. I wish the Government well and I hope all sides of the House will support its thrust in this regard.