Address by Mr Noel Treacy, T.D., Minister for Science, Technology & Commerce at the Irish Software Association Annual Dinner Dance on 13 November 1998

I am delighted to be able to join you all again this year for what has become one of the premier IT events in the national calendar.

Ireland today boasts one of the most vibrant high-technology economies in Europe. The label "Celtic Tiger" stems from the Irish economy's vigorous growth in recent years which is due in no small part to the expansion of the information technology sector.

In particular, Ireland is home to a booming software industry which looks set to continue its rapid growth over the next decade. By the year 2,000 software will be one of the largest industries in the Irish economy.

Ireland is now the largest exporter of software, per capita, in the world. The 1997 National Software Directorate Survey recorded a 44% growth, in the number of indigenous software companies. A massive 81% of Irish software companies are exporting some or all of their many products, principally to North America and the UK, but increasingly into a growing European market.

September saw the launch of Enterprise Ireland's Incubator Network, in Silicon Valley. Designed as a one stop shop, the facility provides serviced offices and access to mentors and venture capitalists.

It is a key focal point in Silicon Valley for the growing numbers of dynamic rapidly growing Irish software companies planning to expand into the North American marketplace.

Ireland's indigenous software developers have an uniquely international focus and a strong product bias setting them apart from many of their European competitors where services account for a large proportion of software activity. More than two thirds of Irish companies are involved in either developing and/or marketing software products.

Total employment in the sector last year was almost 18,500 people, half of which were jobs created by Irish software companies and it is predicted that this will grow to over 21,000 people by the year 2,000 - from a base of no more, than a few hundred in 1980.

The sector currently comprises more than 670 companies, 80% of which are Irish owned. A thriving indigenous sector is creating a broad range of innovative products: from myriad business applications, software tools, advanced telecommunications systems, through to state-of-the-art multimedia systems.

The reasons behind this booming development include:

• the availability of a workforce, which is predominately young, skilled and well-educated, with strong technological and business skills. A recent report by the International Institute for Management Development, ranked Ireland's educational system as the best in Europe - and it is ideally geared to producing skilled employees, for the software sector.
• Ireland has an unique demographic profile - 50% under 28 years of age. A United Nations study shows that by the year 2,000, 40% of Ireland's population will be under 25 years of age, significantly ahead of all other countries in Europe.
• we also have a highly efficient and cost-effective worldwide communications infrastructure using state-of-the-art technology, and
• there is full Government support for the industry.

The Government is committed to creating an environment where such companies have access to the capital and skilled staff necessary for growth.

Last year I referred to the demands of the software sector for skilled graduates and experienced personnel. I promised that our Department would do all it could, to support your great Industry in its on-going growth and development.

The £250 million Scientific and Technological Education Investment Fund, which I talked about at that time, is now up and running. This three year Programme will develop technology education at all levels of the system, from primary schools to advanced research at third level. Already £100 million has been paid into the Fund and a further £150 million will be allocated by Government over the next two years.

To ensure that future skills needs are identified and planned for our Government have initiated several mechanisms.

One of these is the Expert Group on Future Skills Needs which recently completed an analysis of the existing and projected size, of the skills shortage and has made recommendations on further increasing the provision of places in the Universities and Institutes of Technology. The financial and logistical implications of implementing this report are at present being considered as a matter of urgency and I am hopeful that we will be able to keep up the momentum on this vital issue and ensure that suitable personnel are available for this expanding Industry.

This year in response to the Government's commitment to support the industry in its on-going growth and development, Enterprise Ireland in conjunction with the Department launched "Opportunity Ireland" - a focused campaign managed by the National Software Directorate, targeted at highlighting the type of job opportunities available to experienced, qualified personnel in both the software and electronics sectors, here in Ireland.

This remains a very important Initiative. In a recent survey of its membership, the Irish Software Association established that the availability of skilled personnel remains a crucial issue for over 80% of its membership. The "Opportunity Ireland" campaign will continue to operate in support of this vital issue. The campaign is currently gearing up for a major push over the Christmas period and the commitment is there for it to continue right through next year.

The seriousness with which this Government takes the development of the software sector can be measured by the fact that Ireland is unique in Europe as the only country with a Government-backed National Software Directorate one of whose roles is to provide the Government with the analysis which it needs to support the software sector, in a positive way.

The Government Agencies provide a wide range of supports to software companies, including feasibility studies, employment grants, research and development grants and management development and support. Enterprise Ireland also went out and successfully sourced Venture Capital Funds in partnership with the business community at a time when it was difficult for software Companies to get seed money.

The Millennium Fund is an Enterprise Ireland Initiative set up to provide early stage risk seed capital funding, to highly skilled individuals or teams, who wish to return to Ireland to set up a software business. Enterprise Ireland hopes this scheme will attract some of the brightest and best to take the step into entrepreneurship here in Ireland and add to the number of new, innovative companies successfully entering the marketplace each year.

All the elements, that have driven Ireland's rapid growth in software are accelerating - ensuring that a 'critical mass' of software activity, will be maintained well into the future.

The result of all of the hard work by the business community, the third level sector, our Department of Enterprise, Trade and Employment and its many Agencies, was the harnessing of the skills and entrepreneurial spirit of a new generation of Irish business people and the establishment of Ireland as the software capital of Europe.

I have been asked to present the Awards for Company of the Year, Marketing Achievement and New Company of the Year. This year's winners will be in good company and will join a list of prestigious and thriving companies including, Iona Technologies, Mentec, Logica Aldiscon, who announced a major expansion just recently, Trintech, and expert edge amongst many others.

I want to congratulate you all on the key role which you have each played in the continuing, phenomenal success of the software industry in Ireland, and I wish you all every personal and corporate success in the future years ahead.