The Taoiseach, Mr Ahern, has called on information technology companies throughout the State to join an initiative to reduce skill shortages in the economy.

The Government is planning to spend £20 million (€25.39 million) on the Fastrack to Information Technology (FIT) programme, which involves training the long-term unemployed to enable them to fill positions in the IT sector.

Mr Ahern said 3,500 long-term unemployed people would get "well-paid jobs" as a result of the plan, which he announced yesterday with the Tanaiste, Ms Harney.

Mr Ahern complimented the companies which have agreed to take part - among them IBM, Microsoft, Corel Corporation and Oracle - but said more were needed to bring the benefits of the programme to additional people. Companies involved in FIT would offer participants jobs at the end of the scheme, he added. He said high-quality training would be provided by FAS and the Vocational Education Committees.

According to the companies who organised the plan, third-level courses are not producing sufficient numbers to fill IT vacancies. The executive summary states: "If demand continues to be unmet, the number of unfilled positions could grow as high as 7,000 to 8,000 in the next three years."

The scheme will have about 900 participants in 1999, with the remainder coming on stream during the following two years. The idea for the scheme comes from the Tramlines pilot project in Ballymun, Dublin, which provides training for the long-term unemployed and then places them with high-tech companies.

The Irish National Organisation of the Unemployed said the FIT plan "could bring real results to long-term unemployed people".