Shannon Free Zone set to record net jobs gain after 325 posts announced

THE chief executive of Shannon Development said yesterday he was confident that the Shannon Free Zone will record a net jobs gain this year after two years of net losses.

Dr Vincent Cunnane was speaking after three firms in the Shannon Free Zone announced on Friday the creation of 325 jobs, which he described as “a turning point for the Free Zone”.

Last year, the Free Zone — home to over 100 companies with annual sales of €3 billion — suffered a net loss of 254 jobs, reducing the numbers employed to 6,066.

However, Dr Cunnane said: “We have done very well in the Free Zone in the sense that while we have lost jobs, we haven’t lost companies. Downsizing is what has dominated activities here, rather than companies closing.”

The Free Zone has not recorded a net jobs increase since 2008 but Dr Cunnane said: “I would be confident of the zone recording a net jobs increase this year.

“I think we are really turning a corner and I think there is a straight road ahead of it. This year, we would be very disappointed if there are not more job announcements for the Free Zone.”

Ireland’s corporate tax rate of 12.5% “is top of our agenda when we go to meet companies that are considering investing here,” he added, pointing to other potential investor attractions such as an English-speaking, well-educated work-force and attractive business environment, “but corporation tax is at the heart of our sell to new companies”.

Dr Cunnane warned that “to lose the competitive rate of corporate tax — your one distinct advantage — would set Ireland on a path from which achieving a recovery would be put back years and years — decades possibly”.