Written answers

Thursday, 2 December 2010

Department of Enterprise, Trade and Innovation

National Recovery Plan

12:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 12: To ask the Minister for Enterprise, Trade and Innovation the way he intends to achieve the savings of €2.4 million in funding for science, technology and innovation, set out in the National Recovery Plan 2011-2014; and if he will make a statement on the matter. [45531/10]

Photo of Conor LenihanConor Lenihan (Dublin South West, Fianna Fail)
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Investment in science, technology and innovation is key to our economic recovery, growth and national competitiveness. Evidence across global economies shows that there is a clear link between investment in research and development, leading to innovation, and the expansion of that economy. For this reason the Government has provided a very significant level of funding for Science Technology and Innovation investment in the Four-year National Recovery Plan, published on 24 November, in order to restore confidence, create jobs and drive economic recovery.

A sizable public and private research capacity has been built up over the last decade and the National Recovery Plan will provide significant capital funding through IDA Ireland, Enterprise Ireland and Science Foundation Ireland over the four years 2011 to 2014, to support and augment this capacity. This increased investment will underpin the effort of enterprise agencies Enterprise Ireland and Science Foundation Ireland, working to the research and innovation agenda, that will help drive competitiveness and recovery in the domestic economy, continue to win foreign direct investments and create high quality jobs in the Smart economy. In addition, funding for IDA Ireland will be protected up to 2016. In recent years nearly half of the IDA investments were in research development and innovation, activities that are central to productivity and new business development in Ireland's multinational sector.

Irish companies have shown that, despite the downturn, they can grow exports and sustain and even grow employment levels. This has been achieved by companies that have engaged in research and innovation undertaken by highly skilled researchers collaborating with industry partners. Support for such activity will continue to be a core investment priority for the Government so as to create a competitive advantage that will be an important driver of economic recovery and growth.

In tandem with the very significant increase in capital investment provided in the National Recovery Plan, the Vote of the Department of Enterprise Trade and Innovation area will contribute savings across a range of programmes , including a savings of €2.4 million from the science, technology and innovation area.

These savings will be derived, in the main part, from reducing operating costs within Science Foundation Ireland and Enterprise Ireland and in achieving efficiencies and some programme reduction within the Department's area of operations. The Agencies will be required to achieve further reductions to their travel and IT budgets, to reduce fixed costs wherever possible, and to scale back operating costs in an intelligent way that will minimize the impact on the service they deliver. Within my Department's own budget, savings will be achieved by reducing the spending on STI evaluation exercises and by scaling back the budget of the Discover Science and Engineering programme in the order of 10%.

As in other areas of public spending, the State is seeking more from less in relation to operating and programme costs and Departments and State Agencies are working continuously to maximise efficiencies in order to make this happen. The National Recovery Plan will provide a significant increase in capital funding for the Research and innovation area and at the same time will balance the need for savings in a way that is least harmful to Ireland's commitment to research and development and to producing world class researchers – one of our biggest selling points for new Foreign Direct Investment.

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