The chairman of the Industrial Development Authority (IDA), Mr Kieran McGowan, made a timely plea yesterday for more planning to deal with a rapidly emerging skills shortage in crucial areas of the economy. He spoke as the IDA issued its annual report, which estimates that the major multinational companies here are responsible for an estimated 40 per cent of the growth in employment. Although Ireland fares well in international comparisons on the availability of skills for industry, the sheer pace of economic growth and the conviction that high technology development is essential if growth is to be sustained, underline the urgent need for more coordinated planning to match the supply and demand for skilled lab our.
The realisation that economic growth is creating substantially new employment and reducing the jobless figures has only recently entered popular consciousness. Looking ahead towards skills shortages underlines the fact that growth is here to stay and will need a qualitatively different level of preparedness in educational and manpower planning. The IDA has a fine record over the last 30 years in targeting emerging high technology industries and companies that would suit Ireland's resources and capacities, including educational and training investment. A skilled and adaptable lab our supply has been a crucial component of economic development. The expansion of third level and technical educational facilities has more or less matched it; but this has too often been haphazard, not based on advance planning.
The IDA argues that the time has come to lift the issues of skills availability on to a new plane. It will require short term concentration on conversion courses, based on close cooperation between companies and colleges and medium term work by government, industry and educational institutions to plan courses, provide more facilities and remove skill bottlenecks. There is a substantial regional component involved. Unless the problem is tackled effectively, further investment could go elsewhere because of the non availability of labour or substantially higher levels of pay caused by wage drift arising from lab our shortages.
The IDA's warning should also serve to remind all concerned, not least today's incoming Government, that much more long term attention to investment in scientific and technical research and development, as well as in training, will be necessary if a high technology economy is to be sustained. Despite progress made in recent years, the issue needs to be given a much higher priority and greater resources by the Government, by Irish and multinational industry and by educational institutions. Although there has been a substantial growth of linkages between multinational and Irish firms, most research and development functions are carried out abroad. Levels of investment in research and training among Irish owned industry are often lamentably low. The IDA report quotes a perceptive passage from a recent National Economic and Social Council report on strategy for the next century. It points out that "non hightech activities will remain competitive in the long run only if they are characterised by superior organisation, innovation, reputation or strategic assets - all of which are dependent on ever increasing skills and education".