Thomas Byrne (Fianna Fail)

It is a fair point. The Minister of State with responsibility for European affairs has an important role and there is an argument for it to be elevated to a Cabinet position. Fianna Fáil attempted this, albeit unsuccessfully, in 1997.

It is also important the incumbent has a deep commitment to European issues. Deputy Lucinda Creighton follows on from the former Minister of State, Dick Roche, who had a deep commitment to European affairs both at national and party level. Another important aspect of the position is to promote the country abroad among our political groupings on the wider European stage.

The European Union, with its various institutions and agencies, has a huge capacity to aid Ireland in supporting enterprise, instilling innovative attitude and ultimately creating new jobs for our citizens. This often seems to be in grand strategies for the future rather than in dealing with the serious problems we face now.

We are lucky that Máire Geoghegan-Quinn was appointed to the position of Commissioner for Research, Innovation and Science. The Commissioner has a great deal of money to disburse at present. The Minister of State - as has been the case with other Ministers at different fora - referred to repairing Ireland's damaged reputation. She then stated that Ireland is punching above its weight in the context of the grants being allocated. That is a tribute not particularly to Commissioner Geoghegan-Quinn - who cannot favour one country above others - but rather to the reputation of this country and to that of the individual entrepreneurs and innovators who operate here. We have an ally in Europe with the Commissioner and I hope the Government will work with her in order to ensure that the country benefits from this link. Judging by the Minister of State's comments, that is already happening.

Commissioner Geoghegan-Quinn launched the flagship initiative "Innovation Union", which forms part of the EU's 2020 strategy. I have a difficulty with such strategies. The Lisbon strategy was not entirely successful and we have now been presented with the 2020 strategy, which relates to smart, sustainable and inclusive growth. Does the latter strategy contain an answer to our current unemployment strategy? I accept that we want to make Europe more competitive and base its future development on knowledge and innovation. We also want to promote sustainable growth and thereby encouraging the development of an efficient, greener and more competitive economy. Furthermore, we are seeking to achieve social cohesion.

The European Union has a number of initiatives to facilitate these developments. However, a senior economist suggested to me last week that the officials of the Commission and those of European institutions in general would be far better to down tools in respect of these strategies and concentrate instead on the crisis in hand. The headline targets relating to the Europe 2020 strategy include items such as raising the employment rate of the working population from 69% to 75% and achieving the GDP targets in respect of research and development. The European Union has dropped back with regard to the percentage of GDP invested in research and development in recent years. It will be important to ensure that this will be reversed.

There have been a number of developments on the pharmaceutical front in this country in the past week or so. While these will primarily be of benefit to those who require particular medicines, they also have a secondary and major role to play in respect of the creation of employment in the pharmaceutical industry.

When discussing jobs, innovation, competitiveness and economic growth, it is important not to lose sight of the fact that we are not just concerned with creating wealth. We must also reduce poverty and improve levels of social cohesion. The latter is an important part of the strategy and it is vital that we should not lose sight of this.

The Minister referred to Irish companies drawing down €270 million from the innovation fund. That is excellent because it shows these companies are able to mix it with the multinationals. I understand the Commissioner reckons that we are well on target to draw down €600 million by the end of 2013. Irish companies are proportionately more successful than their European counterparts. That should give the country in general and consumers in particular a degree of confidence. We must get the message across that Irish companies are punching above their weight and doing well.

While I would be the first to acknowledge that the country's reputation has taken a battering, I do not subscribe to the notion that it has been badly damaged, destroyed or ruined. It was pointed out to me last week that there is record demand for popular Irish stocks and shares such as those of Kerry Group, etc. This is reflective of the fact that there are some very good companies in this country which are assisting in restoring its good reputation. It is important the Government and the European Union should do everything possible to cultivate that. Dublin has been selected as European city of enterprise. Dublin-based enterprises and small and medium-sized businesses throughout the country should use this as a basis to expand their research and innovation in order to capitalise on any opportunities which might arise.

The "Innovation Union" flagship initiative and the Europe 2020 strategy of which it is part provide a good basis on which to build our innovation and research capabilities. The flagship initiative contains lofty and ambitious goals which all of us support. However, this is not the first occasion on which the European Union has drawn up strategies of this nature. The Lisbon growth and jobs strategy, which was launched in 2005, contained many of the same goals as the Europe 2020 strategy and it did not work as envisaged. The proportion of GDP we spend on research and innovation dropped below 2%, well below the EU's 3% target. Forward thinking and strategic planning for the future are essential. However, we can sometimes think too much about the future and forget the challenges we face today.

The EU should take a step back and consider what it can do now to encourage job creation on a pan-European basis. It should then invest the requisite resources accordingly. That is already happening to an extent, particularly in the context of Commissioner Geoghegan-Quinn's portfolio. I am of the view that the taxpayers of Europe will warmly welcome this. I am also of the view that it will enhance the reputation of Europe among its citizens in general to a greater extent than would lofty strategies, which are important but which do not always work out or present answers.

I hope the Europe 2020 strategy works. As a country with an open economy, Ireland badly needs it to work. Our future, in economic terms, is focused on exports. The Minister of State indicated that exports to Germany increased by 47% in the past year. Again, this is reflective of the good reputation enjoyed by Irish companies and their staff. It also reflects the fact that the country has a reputation as a place which can attract outside companies which can then export goods from here. The notion that our reputation has been terminally damaged or that massive work must be done to restore it is not entirely accurate.

Exports are driving our economy. We do not export shoes or many other basic products. We do, however, export products that are derived from innovation or in respect of which innovation is an essential aspect. We need to produce high-end goods and add value to them and to the economy by being competitive and customer-focused. We must also always strive for further innovation. An innovative approach underpinned by higher levels of competitiveness is one of the surest ways of distinguishing Ireland from its competitors and of ensuring that this country will be at the forefront when it comes to job creation.

I again thank the Minister of State and I look forward to her responses. I wish her well in her role, which is crucially important. I know she will do a good job.