Shannon Development has reported 698 net job losses for 2001, the first time in eight years that overall job numbers in companies it sponsors in the region have declined.

According to its end-of-year statement, the number of jobs supported by the regional development company declined by 3.2 per cent, from 22,049 in 2000 to 21,351 last year. Job numbers had been rising steadily, from 16,781 in 1993.

Mr Kevin Thompstone, chief executive, gave a bleak assessment of the coming year, saying that up to a third of jobs in the indigenous sector were in the vulnerable electronic engineering area, which suffered 1,726 job losses in 2000 - representing a 4.3 per cent decline.

"We are probably going to see a continuation of significant job loss announcements for a period of time to come. There is no point in burying our heads in the sand on that," he said.

The Shannon Free Zone, the flagship industrial park in Shannon, suffered total job losses of 782, or a net loss of 99. Chief among these were the cuts announced by Tellabs, the telecommunications equipment manufacturer. Last spring, the firm announced the loss of 58 permanent jobs and 98 temporary jobs.

Outlying areas within the Shannon Development region suffered disproportionately. North Tipperary experienced the greatest disproportionate loss, of 196 jobs, principally due to the closure of the Moulinex Brandt-owned kitchen appliance factory in Thurles.