Last night I was referring to the statement by the Minister for Industry, Commerce and Tourism in relation to the stock exchange facilities now available. The speculation on the stock exchange was raised by the Taoiseach in suggesting in the past few weeks that an oil find was imminent. The speculation was due to such a statement coming at that level. The position in relation to the added moneys being provided to the IDA under different headings is a very welcome development and Members on this side of the House welcome this new approach. I should like to refer to one heading under which there is an increase, maximum grant for research and development. It is significant that this heading has been picked out for an increase although it is a small one. The Minister is also aware of the importance of this area within the industrial sector.
One of the problems that has arisen in the recent past relating to the closure of factories has been that in many cases they have not been carrying out the kind of research and development which is necessary for them to maintain viability. In some cases, in the case of multinationals for example, this research and development facility is not located here. In many cases it is at their home base in their native country, wherever that might be. The increase under this heading will, I hope, encourage the improvement of research and development where it exists and the setting up of research and development sectors where they do not exist but are taking place outside the country. Members are aware of the massive increase in unemployment and the tragedy that follows in relation to people who are involved in it and their families. Anything that can relieve such pressure and improve the employment situation must be welcomed by any right-thinking person. Overall, the Industrial Development Bill is welcome. Indeed, one wonders why it was not introduced before this. The signs of erosion and contraction have been evident for some time.
The second Bill, the Industrial Development (No. 2) Bill, is of great importance. The Minister devoted three pages of his speech to it yesterday. It is of significant importance in that it broadens the base for the application of grants by the IDA to this services sector. At the moment 46 per cent of our total work force are engaged in the service industries. One might think that a high figure, but when one compares it with figures for developed countries one finds it is quite low. For example, in Sweden, Switzerland and the US upwards of 60 per cent of the total work force are engaged in the services sector. In 1965 the IDA did provide for grants for the services sector and in the last 16 years since the inception of this approach one cannot jump for glee at the success this approach has had. It does represent something in the region of 6,500 jobs which is not, in terms of the success of the IDA in other fields, a great success. In 1980 roughly 1,640 jobs were created in the sector and in the current year the target for job approvals in the sector of 1,500 has been set with current grants of £6.25 million. The Minister in the course of his statement yesterday said that the number of jobs in this sector would double in the next four years. I do not think he is over-optimistic in that provided that the assistance is given and is seen to be given, because this is an area where in developed economies the job share taken up by the services sector is much larger. Therefore, it would seem now that we can make up ground in the sector with an increase in our 46 per cent share of the job-taking at the moment.
The Minister mentioned the total concept of job creation, in other words taking into account not only the provision of jobs but the maintaining of these jobs through the application of this total business concept which he referred to, taking into account things like research, development and marketing. I have already stated that in regard to research and development there seems to be some form of gap in our industrial endeavour in this country, and it can be said with much more certainty that in relation to marketing there definitely is a lack somewhere along the line. Indeed— the Minister of State will bear me out in this — recently a multinational company operating with subsidiaries in the west decided to withdraw from this country. One of the reasons for the difficulty in which they found themselves was, I would say, that they did not have in this country a marketing sector. As far as I recall that sector was in Brussels in this case. There are many more multinationals operating their services in this country with their marketing divisions in London, Brussels, Paris, Rome, Bonn and so on. Therefore, there is a need for emphasis on the development of a marketing sector to a greater degree than has been the case up to now. I hope that this Bill will provide an incentive for the further development of marketing divisions within companies and so on in this country which will ultimately redound to the benefit of the subsidiaries here.
I would also like to mention — indeed the Minister also referred to this — the idea of availing fully of exploiting to the full the new developments based on micro-technology. There is an idea abroad in some areas that unless we are very careful — I concur to some extent — micro-technology and the microchip will cause unemployment in certain quarters and unless we take corrective action we will be the losers. It is of absolute importance that we develop an awareness of this first of all, and secondly that we develop structures in this country, consultative bodies for example, for all sectors of industry where industrialists, trade unions and the public service would be involved in investigating the best ways to exploit this new technology from the point of view of its effect on industry and business in general in the public sector. There is a committee in existence investigating the effects of new technology in the public service.
We must also develop skills that would build on the very sound foundation we now have in the hardware end of the new technology. Leading from that we come into the softwear area which the Minister referred to yesterday, and I hope that this No. 2 Bill will cater for the softwear area in new technology. Having identified the areas where development is possible, having built up a framework within which the skills can be developed to avail of this technology, we must then go about selling the skills and this technology. You can go only so far in selling hardware. There is a limit to the demand for the actual machine or computer or whatever kind of sophisticated object you are selling. There is no limit to the demand for skills, for being able to provide the software packages on film, on tape and God knows on what else in time to come. The thirst for knowledge is always there. It is insatiable and, human nature being what it is, it will always be there and on the increase. In a country like ours without the capacity to develop as large economies might, our future lies in this field to a large extent, in particular if we are to ride out the rough storm of the recession and provide the kind of jobs that young people today are calling out for. That is the one area where there is a limitless demand for a particular kind of product, in some cases not yet gone beyond some person's imagination.
That brings us back again to the educational base, to prepare people for the learning of these skills, such as science subjects and subjects directly associated with technology. One must ask if there should not be parallel legislation on education to enable the incentives provided here to be taken up by the educational sector, so that people are put on the right track and are in a position to acquire of the kind of skills which must be made available to young people.
The Minister did not specify what kind of industries might be eligible for the grant, which he says will be in the region of £4,000 to £5,000 per job. I hope that discrimination will be applied here and that areas where expansion was assured — in so far as anything can be assured nowadays — will be selected as being the most eligible. Priority should be given to ensuring that we get value for money and that the broadening of this incentive base will be used for the benefit of the country and to the best advantage possible.