Údarás struggles to hit job targets

A DROP in funding means it will be difficult for Údarás na Gaeltachta to meet its employment targets over the next few years.

In its annual report it said funding challenges will continue in 2010 as a result of further Exchequer cutbacks and the “stagnant condition of the property market”.

The Exchequer funding granted to Údarás for 2009 was €30.4 million compared to €37.6m in 2008.

An tÚdarás believes it will not be able to meet its targets as a result despite having a “healthy pipeline” of new business enquiries.

The job creation agency approved grants of more than €14 million last year, up 20% on the previous year.

More than €387,105 was approved to companies and entities associated with members of the board.

Údarás said 710 full-time jobs were created despite difficult trading conditions.

It said Gaeltacht companies were seriously affected by the economic downturn and as a result employment in Údarás supported companies fell by 721 or 8.8% from the 2008 base.

Total full-time employment in Údarás na Gaeltachta assisted companies now stands at 7,472.

The main job losses occurred as a result of Gaeltacht enterprises restructuring, downsizing or cutting costs to maintain competitiveness, it said.

“An tÚdarás believes that many of the jobs lost in the past year may be regained in due course as those companies reposition themselves and capitalise on the recovery,” it said in the report.

The lack of access to business credit, weak exchange rates and the fall-off in global markets were cited as the main difficulties for companies.

The figures show that employment in the services industries and modern manufacturing continued to increase during the year while enterprises in the construction related and traditional manufacturing sectors declined.

It said new job approvals last year had to be restricted and were down considerably from previous years to 352 jobs.

“Experience from previous years has demonstrated that close to 1,000 new jobs approvals are required to ensure that job creation targets are reached annually,” it said.

For 2010 An tÚdarás said its main focus will be on maintaining existing employment levels.