Analysis: The National Competitiveness Council (NCC) called yesterday on Minister for Finance, Mr McCreevy, to extend tax relief schemes for investing in new businesses for another three years in tomorrow's Budget.

The NCC said that the Minister should extend the Business Expansion Scheme and the Seed Capital Scheme for three years, but should ensure that they were limited to projects that would not otherwise receive financing. Both are due to end next year.

The council published its annual report yesterday. The document includes a number of proposals in the areas of enterprise and education for ensuring the economy's long-term competitiveness.

The report says that the Republic ranks 15th of 16 countries surveyed for public and private spending on education, and 13th of 16 for the percentage of its population in the 25-to-64 age group that has at least upper secondary education.

However, the Republic ranks first of 12 for the number of science and engineering graduates per 1,000 of the population aged 20 to 34, while it is third out of 15 for literacy.

Council member, Mr Peter McLoone, general secretary of the IMPACT union, warned that the current levels of investment could not maintain those standards.

The report calls on the Minister for Education and Science, Mr Dempsey, to ensure that the current review of the education system should aim to cut the number of early school leavers, ensure that primary and secondary curricula stay relevant and increase the research capacity of third level institutions.

The report also calls for tax credits for research and development (R&D) spending.

It says the Government should reverse proposed cuts in funding for R&D in third-level institutions.