Shannon Development posts highest cost per job created

Shannon Development recorded the highest cost per job created last year among enterprise agencies under the aegis of the Department of Jobs, Enterprise and Innovation.

Figures provided by the Minister for Jobs, Enterprise and Innovation, Richard Bruton, confirm the cost per job created by Shannon Development equalled €16,139 last year.

This compared to the €14,202 cost per job created by the IDA and the €12,024 cost per job created by Enterprise Ireland.

Mr Bruton said: “For the county and city enterprise boards, the total average cost per job sustained within the county and city enterprise boards’ clientele network works out at €6,058.28.”

In response to a written Dáil question from Sinn Féin’s Jonathan O’Brien on the issue, Mr Bruton said: “The present Government will continue to champion the cause of companies that can create good jobs in sustainable activities. The enterprise development agencies will also play a vital role in contributing to the building of a strong, sustainable and innovative enterprise sector that will lead to the creation of employment and investment opportunities.”

As part of the overhaul of Shannon airport, Shannon Development is to form part of the new structure, but is to lose its job creation function.

In response to the figures yesterday, a spokeswoman for Shannon Development said: “The cost per job is a figure calculated after taking into account all the job-creating agencies’ spend. The figure is calculated on a seven-year rolling average and therefore can fluctuate on a year-to-year basis. For example, the 2010 cost per job, based on the seven-year rolling average, was the lowest of all of the enterprise agencies.”

The spokeswoman said: “406 new jobs were created at the Shannon Free Zone in 2011. While overall employment at the zone fell 3% year on year, it should be noted that almost 90% of these job loses were the result of downsizing and not closures, enabling Shannon Development to continue working with these companies to identify new market opportunities.

She said: “The company is encouraged by the slowdown in job losses, reporting a net loss of 174 jobs during the year (580 gross)... Over the past two years indigenous jobs at the Free Zone have increased by over 10% from 949 to 1,046.

&“Considerable progress was made on marketing the Zone to potential overseas investors in 2011. During the year Shannon Development succeeded in securing 19 itineraries from prospective new clients for the Shannon Free Zone, seven of which were generated in partnership with IDA Ireland.”