More jobs lost than created last year among IDA-supported firms
By Caroline O’Doherty
Thursday, July 09, 2009
MORE jobs have been lost by state-assisted foreign companies here than were created by them for the second year running.
IDA Ireland, the state agency responsible for attracting foreign direct investment (FDI), reported the creation of 8,837 jobs in new and existing companies in 2008 but also revealed that 10,044 were lost.
The situation this year is worse again, with just 2,300 new jobs being created while around 6,000 have been lost. Both the agency and Enterprise Minister Mary Coughlan put a brave face on the figures, insisting the willingness of overseas companies to keep investing here was a good sign.
But IDA chief executive Barry O’Leary also said further pay cuts, perhaps by 15%, would be needed to keep foreign firms interested in the Irish workforce.
"Competitiveness is a key factor in attracting FDI. Positive improvements in cost competitiveness have taken place in many areas, including land, building, rent, energy and labour costs," he said.
"A strong focus on further improvements in overall competitiveness will position Ireland to take advantage of the eventual global economic recovery."
Last year was not without its flagship moments, notably Coca Cola’s €220 million investment in a new flavour manufacturing facility in Wexford, the creation of 315 jobs at Microsoft’s newly expanded facility in Clare and a €50m investment by medical devices manufacturer, Zimmer, leading to 250 jobs.
This year has also seen high profile investment announcements from the likes of Hewlett Packard and IBM which between them are promising 600 new jobs. "The level and calibre of investments demonstrates clearly that Ireland retains its reputation as a leading location for FDI," said Ms Coughlan.
Fine Gael said the net job losses were a result of the government’s failure to tackle the costs of doing business here. "Ireland’s energy costs are the highest in Europe for large businesses while the cost of refuse, financial services, telecommunications and particularly government controlled prices remains excessive," said the party’s labour affairs spokesman, Damien English.
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This appeared in the printed version of the Irish Examiner Thursday, July 09, 2009
