The Industrial Development (Amendment) and Miscellaneous Provisions Bill 2026, which I will bring forward very shortly, includes an amendment which will streamline the way in which the enterprise development agencies, IDA Ireland and Enterprise Ireland, can support enterprises in the defence, security and resilience (DSR) sphere.
The Bill amends the Science and Technology Act 1987 by deleting Section 8(5) which requires that the enterprise development agencies secure formal Government approval before they engage in, or promote, any activity of a primarily military relevance.
Ireland’s enterprise landscape is evolving in a rapidly changing European and global context. Increasingly, the Irish enterprise base needs to respond to DSR-aligned technology opportunities which are emerging. This area is evolving to include fields such as cyber defence, space domain awareness, maritime security tasks and hybrid threat monitoring. The Section 8(5) provision is broad, open to varying interpretations, and creates ongoing practical difficulties in determining when, and to what extent, enterprise agency teams - EI or the IDA - may engage with existing or prospective clients that might be considering opportunities in defence, security, or related technologies.
The decision to delete this provision of the 1987 Act reflects the need to modernise an outdated, ambiguous provision so that our enterprise agencies can operate more efficiently and dynamically, as well as responsibly, in this new environment.
Section 8(5) is a provision which originally applied to the now dissolved Eolas agency. It is outdated given the comprehensive, multilayered regulatory environment which now exists in this sphere. A framework already exists in relation to how enterprises operate in the defence and security space, a key part of which is the Control of Exports Act 2023, and this regulatory environment is not affected by the deletion of Section 8(5).
The amendment allows the agencies to support, financially or non-financially, enterprises in the DSR sphere, subject to compliance with all existing controls and legal obligations governing the sector. Every substantive safeguard that protects Ireland’s national security, reputation and international obligations remains fully in force. All the existing checks and controls remain. These include rigorous project appraisal, the Export Controls regime, international treaty obligations, Ministerial powers and Governmental oversight and Defence procurement safeguards.
A key enabler to maximising our engagement in EU funding initiatives is the capacity to utilise the competence and capability of both Enterprise Ireland and IDA Ireland. The European Union is significantly expanding the scale and scope of initiatives in these areas in relation to enterprise and innovation. These include funding mechanisms and collaborative programmes aimed at strengthening Europe’s resilience. Maximising funding from EU programmes, such as the forthcoming European Competitiveness Fund, is economically crucial as failing to fully participate would mean forfeiting potential returns on Ireland’s EU budget contributions.