Decrease in IDA backed jobs in 2007

Companies backed by the IDA created 9,216 new jobs in 2007, a reduction of about 2,000 on the previous year.

When job losses are factored in, there were 147 fewer people employed full time by IDA-backed businesses at the end of 2007 when compared with the previous year.

Statistics published by the IDA yesterday show that 136,394 people were in full-time employment last year at projects backed by the agency.

Barry O'Leary, the IDA's newly-installed chief executive, said the figures reflected a challenging global economic environment but cautioned against drawing any negative conclusions about foreign direct investments into this country.

"It's always hard to take one year in isolation," he said. "There's always been about a 7 per cent churn in our portfolio."

Mr O'Leary predicted that IDA-backed companies would create about the same number of jobs in 2008 as last year. He said the IDA had a "pretty good pipeline of projects" that would be announced in the coming months.

The State investment agency is focusing on delivering projects in the life sciences, financial services and information technology sectors, he added.

"There will be a steady flow of very good quality announcements," Mr O'Leary said.

The IDA's figures show that 114 projects were agreed in 2007. Of this, 30 were greenfield projects, 39 represented expansion by companies already located here and 45 involved research and development. The agency said €2.3 billion in capital investment over the next three to five years has been secured from its client companies.

In keeping with the IDA's strategy of enhancing regional development, 64 per cent of investments last year were located outside Dublin.

Investments secured by the IDA in 2007 included Microsoft's €360 million EMEA Data Centre in Dublin; Merck Sharpe Dohme's €200 million vaccine operations in Carlow; and a €75 million investment by healthcare company Baxter in its two facilities in Mayo.

IDA-backed companies paid €3 billion in corporation tax in 2007, accounting for 47 per cent of the state's total corporate tax take of about €6.7 billion.