Mary White (Fianna Fail) | Oireachtas source

I welcome the Minister of State and wish him continued success with his most interesting portfolio.

Fianna Fáil established Science Foundation Ireland in 2003. It was initially headed up by Dr. Bill Harris, a visionary dedicated to driving much-needed scientific progress and innovation in Ireland. I wish to focus on the importance of innovation in the context of indigenous companies and the contribution they make to creating employment. At a very interesting meeting of the Committee of Public Accounts last week, the chief executive of Enterprise Ireland, Mr. Frank Ryan, referred to the fact that the indigenous companies being established now are different from those which preceded them. He stated "we understand that in a small economy, exports sustain and create jobs". Last year, this country's total exports amounted to ¤15.2 billion. Clients of Enterprise Ireland exported more in 2011 than at any time in the history of the State. The support and promotion of in-company research and development and innovation, as well as collaborative innovation with others, is central to the development of Enterprise Ireland-supported indigenous companies.

From my experience in establishing Lir Chocolates, I am aware that innovation lies at the heart of entrepreneurship, be it in a high-potential start-up company turning knowledge into solutions or in established companies that are continually improving their products and processes and thus their ability to compete and win sales overseas.

An interesting issue which has arisen is the banks' lack of ability and capacity to support modern high-tech companies. Mr. Niall O'Donnellan is responsible for dealing with the banks on behalf of Enterprise Ireland. When asked about the banks and their relationship with the new companies to which I refer at last week's meeting of the Committee of Public Accounts, he stated that Enterprise Ireland established a banking relations department in 2008 in response to the credit crunch. Mr. O'Donnellan also indicated that the immediate issue in this regard was access to credit for the companies with which Enterprise Ireland was dealing and which were under considerable pressure at the time. Furthermore, he said that Enterprise Ireland established relationships with the three primary banks, namely, AIB, Bank of Ireland and Ulster Bank. He went on to indicate that when it became involved in discussions with the banks, Enterprise Ireland realised that the Irish banking system was not fit for purpose for the modern SME export sector in particular.

Mr. O'Donnellan pointed out to the committee that there were three aspects in this regard. The first of these related to the fact that the banking system here had not become familiar with the modern technology economy "so software, for example, was a sector that Irish banks would have very little involvement in up to that period of time". It is fascinating that the banks were incapable of helping indigenous high-tech companies to develop their businesses. Mr. O'Donnellan stated that Enterprise Ireland set up workshops with the three main banks "in terms of educating them about the kinds of companies we work with and introducing them to various groups of companies: the Irish Software Association; the IMDA - the med-tech association, and so on." His colleague, Mr. Frank Ryan, also informed the Committee of Public Accounts that Ireland is now viewed differently than was the case previously. Mr. Ryan stated that in the past Sweden, Switzerland and so on were perceived to be high-tech countries and that Ireland has now entered that league.

There has been a dramatic change in the quality of the products being produced here. Ireland is no longer the equivalent of low-cost company, rather it is a high-tech developed economy which can compete abroad. I am aware, from personal experience, that innovation is the lifeblood of any company. The Bill before the House will allow Science Foundation Ireland to add lifeblood to the growing number of superb indigenous companies operating in the high-tech area here. Companies must innovate, relentlessly and on a daily basis, if they are to compete.

I congratulate the departmental officials and all involved in the evolution of Science Foundation Ireland. Anecdotal evidence indicates that Dr. Bill Harris used to fly in from the United States and go straight to work. This meant that staff had to open the offices of Science Foundation Ireland at 5 a.m. on certain days. This is the new Ireland. I wish everybody involved continued success.

I used to deliver Lir chocolates by hand. I recall taking the cheapest means of travel to destinations abroad in order to do so. I was obliged to travel over and return on the same day because I could not afford an overnight stay. Those involved in the high-tech sector cannot operate in that way. They require access to cash and credit in order that they might expand their businesses and travel abroad to meet their customers.