Between 1997 and 2001, there was a marked increase in the number of third-level students taking courses in computing and information technology (IT).

This expansion was fuelled, to a large extent, by perceptions of high rates of growth in the IT sector and consequent strong employment prospects. However, in the past year, this trend has reversed as students and their parents started to question the viability of the sector.

The number of applications for admission to engineering and technology degree courses has fallen from 9,423 in 2001 to 7,223 this year. This migration of students away from IT could have serious long-term implications for the Irish economy.

The apparent loss of confidence in the sector by students is not reflected by multinational corporations, which continue to invest in and expand their Irish operations.

There is little question that 2001 was a difficult year for the global IT industry but it did provide an opportunity for careful examination of operations, consolidation and review of growth strategy after several years of rampant expansion. The restructuring process is likely to continue in the coming year and may be expected to increase the efficiency and competitiveness of the software and electronics industry.

The Republic needs to be part of this revitalised industry but, if students do not have confidence in the industry and do not commit to careers in the sector, there is likely to be a crippling skills deficit that will take many years to address.

According to ICT Ireland, the IT skills gap in Europe is widening and is expected to reach 1.7 million by the end of 2003. This means that the Republic's pool of IT talent will be vulnerable to predation by companies in other EU member-states and, if our resource is already depleted as a result of declining numbers of graduating students, our local industries will be disadvantaged. The likely consequence is that our investor pool will also be tapped by those economies that can offer a skilled work force and this will result in an overall loss of jobs from the State.

The situation is serious and action is required to avert the impending crisis. All who are concerned about the issue must consider how to restore the confidence and interest of our students in IT.

Irish industry and, particularly the IT sector, needs to be proactive in attracting students to the industry and assuring them of bright career prospects. The sectoral downsizing, which dominated headlines in 2001, caused leaving certificate students to vote with their feet and they walked away from considerable employment opportunities in the future.

The IT and electronics industries continue to offer competitive salaries and excellent job security. The sector employs 100,000 people and the recent highly publicised spate of layoffs, although traumatic for those affected, barely grazed this figure.

Third-level institutions in the Republic offer a wide range of courses in technological disciplines. The links between industry and third-level institutes are reasonably good but much more could be done to establish strong relationships between industry and second-level schools. Initiatives such as support of IT projects in schools, visits by schools to high-tech manufacturing facilities, student internships during holidays, sponsorship of career days in schools, talks to school audiences by business people and distribution of attractive, informative publications are some ways in which a more effective dialogue could be established.

Perhaps it is even time for industry to invest in research that examines the way in which technology is taught in our schools. Most importantly, we must all ensure that the message delivered to our students is one of hope, optimism and enthusiasm for the future of the industry.

This is a message that can be delivered with confidence because, in spite of a rough 18 months, the information age is here to stay and nothing will stop its global growth.

The industry has established strong roots in the Republic but, unless it is provided with the people who are its most essential resource, there is cause for concern about long-term survival and sustained growth in the expanding global market.

Dr Roger G. H. Downer is president of the University of Limerick