ADJOURNMENTS MATTERS
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Scientific Research Funding
February 24th, 2000

Dr. Henry: I am glad the Minister of State is present for this debate. I am aware of his commitment to the spending of the substantial funds that were allocated for scientific research last year. The Minister of State is aware of my great delight at the announcement that these funds would be made available.

The entire scientific establishment greeted the announcement last year that the Government was allocating an unprecedented sum, £560 million, towards scientific research. However, the Minister of State must be aware that concerns have been expressed by members of the scientific community regarding newspaper reports on how this money is to be spent. I know he probably has not had time to read the ongoing discourse within the Irish Research Scientists Association, but he will have seen articles in The Irish Times in which a number of leading researchers expressed their concerns.

The Government's technology foresight report was one of the most far-reaching and powerful reviews of Irish knowledge performance ever carried out and it was good to see the Government following up so quickly by accepting the need for a major investment in knowledge and knowledge generation to ensure the country's economic future. However, as already stated, there is concern about the disbursal of these funds. It is unclear whether the Government intends to establish research institutes independent of the higher education sector. Many in that sector are concerned that the difficulties in establishing such institutes are being underestimated. They believe, and I agree, that it would be better to get the existing system working well before we embark on such expensive, long-term, stand-alone projects.

If we are to build institutes on greenfield sites, how many years will be lost before they are completed and ready for use? Will it be ten or 15 years? How much will it cost to build these institutes? Will £100 million or £200 million of the allocation of £560 million be spent on their construction?

My colleagues in the third level sector and I believe it will be difficult to attract top class researchers to these new centres. To quote Brian Sweeny who wrote the technology foresight report: "The rapid deployment of a central mass of world class researchers will have a twofold impact; it will give a clear signal to the knowledge based companies of the immediate present and future that we are serious about founding a substantial facility to meet their needs." How long does Mr. Sweeny think it will be before we can attract such a workforce? Very few people of very high calibre will come to an empty, isolated institution because their services are being sought internationally. These people are in their thirties to fifties, they will be established in top class institutions across the globe, their families will have settled in the countries in which they live and they will be aware of the difficulties involved in coming to Ireland to establish new institutions.

Mr. Sweeny appears to feel that these people would be prepared to work on short-term contracts and that they would not require security of tenure. While security of tenure is not what it was, it has not entirely disappeared. Most of the people to whom I refer are on five or ten year or even longer contracts. Many of them are on seven year roll-over contracts and their employers appear only too enthusiastic to retain their services following a peer review of their research work. We may find that we are attracting second rate people rather than the top class individuals we are seeking. The latter find it easy to obtain secure jobs.

It is difficult to know whether these new foundations will have their own research laboratories. Such laboratories are not entities in their own right; different laboratories are developed for different projects. We could end up building expensive facilities for projects that might only last two to three years and these facilities might not be capable of being converted to serve other purposes. Equipment must also be purchased. I recall reading an article in The Lancet some years ago on the value of equipment that had been bought for single projects only within a research establishment. The amount of money being spent was quite alarming.

It will also be difficult to attract people with good technical expertise. Good technicians are in great demand and they are specialists in their own right. Technicians cannot just be employed and then moved from botany to physics to gastroenterology with a great deal of ease because they acquire skill and build up expertise within their own disciplines. Ireland is considered to be extremely fortunate in terms of the technical staff available within our third level institutions.

We must realise that there could also be huge duplication in terms of the work carried out in these new research laboratories and that done in existing facilities in the third level sector. A partnership with this sector is essential for any foundation or institute but I cannot see any definite evidence of establishing such a relationship.

Will the proposed new institutes have teaching mandates? It is important that students are exposed to cutting edge research while they are being taught because they will not see such research as a further extension of where their knowledge may go. The knowledge based companies and sophisticated multinationals to which Brian Sweeny referred are much more likely to be impressed by investment that unites teaching with research. Most of the people working for those international companies will have taken that path to the positions they now hold. Incredibly successful businesses which were based on that concept have developed in this country during the past 20 years.

One cannot suddenly become a researcher if one has no idea what it involves. How long will it be before the institutes to which I refer are up and running properly - ten, 15 or 20 years? In my opinion we will have to wait too long for trained researchers to emerge from these institutes, particularly when one considers the rapid changes taking place in biotechnology and information technology.

We are ignoring the excellent institutions which already exist in this country. If the £560 million was invested in those institutions we could proceed with our plans immediately. I obtained a great deal of my information on research in this country from the Irish Research Scientists Association to which I am most grateful. However, it is not just the association which has been expressing concern. Many leading scientists from various disciplines have expressed their views in articles in The Irish Times.

The Irish Research Scientists Association has developed a proposal which I consider good and which might cover what is being sought by the various Departments and members of the scientific community. I refer to the establishment of a virtual research foundation. To quote from one of the association's recent documents:

The virtual research foundation exists in the sum of the participants rather than in a particular building. It represents a compromise between the need to establish a foundation and attaining the best possible value for investment in research.

The foundation could have its headquarters in a prestigious public building and it would function rather like the Wellcome Trust which, before the advent of this great windfall, was more generous in the past to Irish researchers than the Government.

The researchers in this foundation would be teachers in third level institutions, many of whom are already internationally renowned. We should not underestimate the work of the National Microelectronics Institute in Cork. There are four major projects in train at present in the EU and that institute is the only one in Europe which is involved in all four. Contracts for such projects are not easily obtained. When we have places like this we must be very careful that we do not suck good people out of them and into these new institutes. That would diminish their potential while at the same time these greenfield institutes might not be as good as one would hope.

No one will return here to do medical research unless they can be assured of consultant posts and, possibly, professorships in our major hospitals and universities. Has this been checked with the Minister for Health and Children and the Minister for Education and Science? People will not return here from prestigious positions abroad unless they can get equivalent positions here. The only reason people who returned here in the past did not stay was that they were not properly funded. That will not occur now that we have the money.

We are so behind the economies with which we compete in the areas of long-term fellowships, project and programme grants and money for the overheads involved in running departments that it would take years to get institutes up and running. We have an existing research infrastructure. All the Minister of State need do is put flesh on the bones of these institutions. This would give him exactly what he wants and the research foundation would be an all-embracing body to cover all the various institutes.

Mr. Treacy: I am delighted to have the opportunity to outline for Senators the Government's substantial seven year investment programme for research, technological development and innovation, RTDI. Senator Henry is referring to the £560 million earmarked by us for the new technology foresight fund, but before dealing specifically with this issue it should first be put into context.

The proposals set out in the National Development Plan 2000-2006 put RTDI investment at the heart of national economic policy for the first time. This is manifested in the overall allocation within the plan of £1.95 billion for RTDI over the seven years of the national plan. This unprecedented level of investment, which represents almost 5% of the total funding set out in the plan, is profound evidence of the high priority the Government attaches to the role RTDI plays in stimulating our economic growth.

The £1.95 billion will be used to continue and develop the vital support in key areas where public investment remains fundamentally necessary to sustain our economic growth, and to encourage Ireland's transition to an economy which is based on knowledge and new technologies. This allocation brings us to the threshold of a new era where we will be able to invest substantially in the RTDI activities which are critical to competitiveness, employment and the enhancement of society.

The RTDI investment includes a major provision of £560 million for a technology foresight fund and for investment in key technologies which are strategic to long-term national development. Following an extensive consultation process with the science and technology community in industry, academia and the State sector, the Tánaiste and I have prepared proposals for Government on the most appropriate mechanism to administer such a fund.

The rationale underlying our approach is that in future increasing globalisation of trade and EU restrictions on both fiscal and monetary policy will intensify competition from other countries seeking to outperform Ireland as a competitive location for doing business. At the same time, industry and related international investment are becoming increasingly knowledge based as new research and technologies translate into global marketable products and services. We, therefore, need to focus now on building new sources of competitive advantage for indigenous companies and on ensuring Ireland becomes one of Europe's most attractive locations for knowledge based enterprise, both Irish and foreign owned. The outcome of this would be to achieve the greatest economic and social benefit and sustain industrial competitiveness in the long term.

We believe this investment is necessary to develop world-class research capability in strategic technologies, to underpin the future development and competitiveness of Irish owned industry, to facilitate the undertaking of research and development in this country by multinational companies, in order to support the further development of that sector in Ireland, to attract more high-tech companies to Ireland and to enhance the environment for the creation of more Irish owned high-tech start-ups. I am sure the House will appreciate that until all the details have been finalised by Government I cannot go into the specifics of how the fund might operate.

However, I want to put on record that since I was appointed Minister of State with responsibility for science, technology and commerce in late 1997 I have listened very carefully to the most senior and influential people and managers in the education and industrial sectors. Their loud and clear message to me has been to make RTDI investment an absolute priority in the future economic planning process. The national development plan and this technology foresight funding is testimony to the fact that the case has not only been made, but is being delivered upon.

The key to the success of any proposed investment will be a strong partnership with all the other main players in the research system, that is, industry, third level colleges, research institutes and other research funding bodies. The real objective, through such partnership, is to ensure Ireland reaps the rewards of the substantial increase in investment in RTDI. I have no doubt that we are at the first stage of an ambitious and exciting time for RTDI which will deliver the type of economic growth which will underpin our future competitiveness, thus making huge contributions to economic sustainability and expansion all over Ireland.

When I came into office in October 1997, there were virtually no funds for research in the third level sector and small funds in the industrial sector. In my first effort I got Government sanction for a £5 million programme for a third level research fund. The third level sector did not seem happy with that. We had put in certain conditions whereby they had to compete, collaborate and undergo a peer review to qualify for the money. They said they were dissatisfied with the amount of money available. We gave reassurances that more money would be available. The following year we made a new fund of £180 million available on the same basis and they all said, "How wonderful, you were so right last year". Later that year we topped up that fund by a further £40 million, bringing the new fund to £220 million, in addition to the original £5 million. We put £250 million into an educational technology investment fund for first and second level.

I listened with great interest to what Senator Henry said and I have read the newspaper articles. I am somewhat disappointed with the third level sector because a major campaign has been run against me, my office and our Department in regard to our efforts. We are listening. We are in a new age of partnership and competition, which is what will rule this fund. Institutes will not be handed large amounts of money and told they can do what they wish with it. These are days of performance, competition and partnership. There are 81 stand alone institutes in Germany and nine more will be created this year, giving a total of 90 institutes.

Senator Henry referred to an institute supported by State funds which has done a wonderful job and to the Wellcome Trust, which is also doing a great job. I appreciate its generosity, along with that of other companies, and the investment and resources it has given us over the years to support industrial and third level research.

I assure the Senator that the Government will take a careful, positive, measured decision. There will be opportunities for partnership, collaboration, linkage, performance, productivity and transparency. The new fund will help drive the third level sector, industry and the national economy rapidly forward to ensure this economy will be thriving after 2015 and that international companies will want to do their research and development here. We will have world class companies and research standards and we will be able to attract the best and the brightest to ensure the economy of this small island continues to grow. At the start of a new millennium, we look forward with great optimism because we are confident this economy will grow much greater than ever before on an all-island basis.

Dr. Henry: I thank the Minister of State. I know he will listen because he has listened in the past. He should not be too cross with the third level sector. It would be much worse if they were passive. It is better to have assertive people because one knows they will take action. He would be in a much more difficult situation if they constantly said that everything was fine.

Mr. Treacy: I appreciate that. However, I am disappointed that many people with time to write newspaper articles seem to think we are silly people who are unable to do our business. We are listening and we will respond positively.

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