Enterprise Ireland creates net 3,000 jobs

Almost 13,000 new full-time jobs were created by companies supported by Enterprise Ireland last year, according to the State …

Almost 13,000 new full-time jobs were created by companies supported by Enterprise Ireland last year, according to the State agency's end of year report.

However, the net gain recorded was only 3,000 following poor performances in the Mid-West, North-West and Midlands regions. Almost 1,000 part-time jobs were also created.

Announcing Enterprise Ireland's end of year results, chief executive Mr Dan Flinter also outlined initiatives to promote the growth of e-business among Irish companies.

It will also target areas outside Dublin and the East. Last year, only 91 jobs were created in the Mid-West area. After job losses of 186 in the region, companies supported by Enterprise Ireland showed a net loss of 95 jobs in 1999. Of the 12,951 full-time jobs created, almost 5,000 were in the Dublin area. The South-East benefited from 1,543 new jobs, the South-West gained 1,490, the Mid-East 1,275, the West 1,197 and the North-East 1,173.

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There were also substantial job losses in Dublin at 3,554 and the Mid-East at 1,094.

According to Mr Flinter, structural changes in the economy were responsible for many of the job losses outside Dublin.

Mr Flinter said a breakdown of employment figures by sector showed the consumer sector, which includes textiles, saw job loss of 1,113 in 1999, while all other sectors saw increases.

International services saw a 2,199 net gain, food saw a 433 net gain and industrial products a 1,548 net gain.

Mr Flinter said he expected the clothing industry would suffer further job losses in the future. "We're seeing people move from some sectors to others."

He added that Enterprise Ireland was already actively promoting geographically mobile investment outside the east coast area and an increasing focus on creating a better environment for high technology start-ups would boost employment opportunities outside eastern parts of the State.

This required an emphasis on developing broadband access and road infrastructure in these areas.

In 1998, Enterprise Ireland supported almost the same number of jobs created as last year but net employment growth was 1,000 higher at 4,000.

Sales by Enterprise Ireland-related companies reached £18 billion (€22.9 billion) last year, a growth of 6.3 per cent on 1998. However, while this meets the agency's 2001 targets, announced last year, growth in exports has not kept pace with predictions.

Indications for the first six months of 1999 showed exports grew by only 4 per cent. "Exports were not as buoyant as we had hoped," said Mr Flinter.

Mr Flinter said there was clear evidence that Irish companies were investing more in research and development, both in the IT and food technology sectors. There was a 30 per cent increase in Enterprise Ireland support for companies performing R&D.

The vast majority of new startups were in the technology sector in 1999 and many of these were by second-time technology entrepreneurs, said Mr Flinter. However, only a small number of Irish companies had embraced e-business and many had failed to fully appreciate the profound implications of the Internet.