The president of the Economic and Social Research Institute Sir George Quigley has called for an increase in public funding to support long-term research projects.

Speaking at the annual general meeting yesterday, Sir George said an increase in funding would "yield substantial national benefits in the medium and long term".

He also warned about the impact on the economy of the attacks on New York and Washington on September 11th. But he added the sectors in which Ireland is now strong were not ephemeral.

"Even the markets the high-tech sector exists to serve will recover, albeit severely chastened, when the adolescent phase of the new economy gives way to greater maturity."

He added that the worldwide slowdown was now causing a deceleration in activity. Against that background, the role of the institute is more than ever crucial."

According to Sir George, there are a number of significant question now facing the State. These include questions on strategic direction, vulnerability and competitiveness.

He also pointed to a wide range of other achievements for the ESRI over the past few years, particularly the development of the HERMES macro-economic model of the Irish economy.

At the same time, the institute produced the quarterly economic commentary and reported on the victims of crime as well as a study examining private practice in Irish public hospitals. A wide variety of other social topics was also addressed, he said.