IDA Ireland client companies created more Irish jobs than they lost during 2004 for the first time in three years, the State investment agency said yesterday.
The agency reported a net gain of 197 jobs in 2004 from 70 projects, which should result in about €5 billion of investment. It signalled a positive outlook for 2005 following the economic recovery experienced this year.
The IDA also welcomed news yesterday of US healthcare group Johnson & Johnson's $25.4 billion acquisition of medical devices group Guidant. Both firms have significant operations in Ireland.
The two firms employ around 2,200 people in the State. Guidant is expanding its operations and adding a further 1,000 jobs. Johnson & Johnson is creating 330 jobs over the next five years, with subsidiary Centocor's construction of a biopharmaceutical plant at Ringaskiddy in Cork.
"This is very good news for Ireland," said an IDA spokeswoman. "Johnson & Johnson has a history of faith in the Irish economy and its people and this announcement should be good for the future development of the medical technology business in Ireland."
She said that there would be no job losses in Ireland as a result of the merger of the two companies, and the recently announced expansion of Guidant's Clonmel plant would go ahead.
IDA Ireland chief executive Mr Seán Dorgan said the quality of the investment projects attracted by the IDA had also improved in 2004. "Over 48 per cent of the new jobs in IDA supported projects that will pay salaries in excess of €37,000," he said.
"This has certainly been the best year since 2000 in terms of the quality, depth and value of the investment decisions won."
Employment at IDA client firms increased slightly overall to 128,946, reflecting 10,825 new or additional positions created at multinationals, and 10,628 job losses. Redundancies fell by 20 per cent on 2003, when 3,011 people lost their job. Mr Dorgan highlighted investments by Intel, Kellogg's, Centocor, Pfizer, Bell Labs, IBM and Guidant as big successes for the IDA and the Republic in 2004. He said the educated and professional skilled workforce ranked highest in the advantages of operating in Ireland for multinational firms.
Multinationals invested €140 million in 36 research and development projects during 2004, including a €69 million flagship investment by Lucent for a Bell Labs research headquarters.
IDA estimates that its client firms paid €2.7 billion in corporation tax during 2004 and spent €15.5 billion in the Irish economy. The multinational sector had annual sales worth €72 billion and exports worth €68 billion.
In 2003 IDA-supported companies spent €14.7 billion in the Irish economy from their annual sales of €69.3 billion and exports of €65.2 billion.
Mr Dorgan told The Irish Times yesterday that he was positive about the prospects for 2005, but that changes in the state aid rules from 2007 would make it more difficult to use grants to lure companies to regional locations.
