No jobs meltdown, says IDA chief

IDA Ireland bosses stressed the country was not facing a jobs meltdown following some high-profile plant closures this year.

Chemicals giant Pfizer is currently reviewing the future of two plants putting 480 jobs at risk. Motorola has shut its Cork plant with the loss of over 330 jobs while biopharmaceutical giant Amgen has delayed a massive investment in Carrigtwohill, Co Cork, where 1,200 jobs were promised.

In the first three months alone an estimated 2,500 jobs were lost that also included 360 jobs at Procter & Gamble in Nenagh and 200 jobs in Thompson Scientific in Limerick.

These losses were not part of an “exceptional trend” and “we need not be unnerved nationally by what is a familiar experience for the Irish economy,” said the IDA’s chairman John Dunne.

He was speaking following the launch of the IDA’s 2006 annual report yesterday which showed new jobs created last year fell marginally to 11,846 against jobs lost of 8,051 resulting in a net gain of 3,795 jobs.

The level of jobs being lost in foreign companies here has fallen steadily from 12.8% in 2001 to 5.9% last year.

IDA backed companies account for 135,000 jobs in total.

In total, the State inward investment agency backed 39 startups, assisted 32 expansions and backed 54 R&D technology and innovation projects for existing clients.

Last year multinational firms invested €2.6bn in the economy and in the key area of R&D €470m was spent against €260m in 2005 and €140m in 2004.

They also sent about €15bn on wages, materials and services and contributed an estimated €23.8bn in corporation profits tax to the Exchequer.

Mr Dunne also stressed the need for investment in infrastructure and the need for the economy to do everything possible to keep its cost base competitive.

We have met the demands set for us by the multinational sector that are such a core part of the Irish economic success story, he said.

Seán Dorgan the group’s outgoing chief executive, commented that the huge rise in R&D was crucial to the success of foreign companies based here.

“These high level activities play a strategically critical role within the parent corporation and strengthen the Irish based facility,” he said.

These Irish subsidiaries are in direct competition with sister companies based across the world for such “cutting edge investment”.