The report by the development committee said that quite a number of people are leaving the country because of taxation. The Minister says they are going because they are getting high salaries. Does he not accept that the reason they are leaving is taxation on pay? Does the Minister not consider that it is unsatisfactory that the national micro-electronics research centre which was intended as a focus for joint research and development between the universities and industry depends to such an extent on the EC for its research work? In 1985, 54 per cent of its research work came from the EC. What steps does the Minister envisage to increase participation by native industry in research and development?

A small number of very qualified graduates in electronics and in pharmaceuticals leave Ireland and others come in. The movement is caused by a variety of factors. Many people like to travel when they are young. Others go for experience. Others are attracted out by lifestyle and others are attracted out by money. Taxation in individual countries is included as part of that package but it is impossible to put a figure value on it. It is something that always has to be taken into account. In the absence of radically reducing taxation, the best option is to allow companies to target key personnel in the manner in which they can now target them as a result of the stock option provisions in the recent Finance Bill.

The second question raises a very interesting matter about the level of research and development and other areas such as management and marketing in indigenous companies. As the Deputy is aware, there is now a conscious policy of developing key indigenous firms. It is a company development scheme which, among other things, would be interested in developing research and development in indigenous industry. As the Deputy rightly points out, proper research and development are the key to expansion in the future.