The numbers employed in Udar as na Gaeltachta-supported companies reached an all-time high last year but the development agency for the Gaeltacht has complained of a shortage of suitable sites for projects.

Udaras na Gaeltachta said yesterday that overall employment increased by more than 5 per cent last year and now stands at 7,854. New jobs created totalled 1,073. However, when job losses are taken subtracted there was an overall gain of 415 jobs. The figure is slightly down on the previous two years.

Udaras chief executive Mr Ruan O Bric said the availability of industrial space is a major issue in some Gaeltacht areas. He said although there was an increase of 50 per cent last year in the Exchequer allocation for building, most of this had been targeted on specific projects.

"In itself this is a healthy trend, but we continue to be unable to make any major inroads into the overall lack of space through, for instance, returning to a programme of advance factory units," Mr O Bric said.

He said in real terms only about 3 per cent of overall factory space is available for immediate occupancy.

"This shortage can be a significant contributory factor to slowing down the rate at which job approvals can be converted into jobs on the ground," he said. He also said that an additional challenge facing new and expanding businesses is sourcing suitable staff. "Last year, some companies in a number of sectors, in Donegal and Galway in particular, experienced difficulties in this regard."

Mr O Bric said Udaras had taken several steps to address the difficulties. This included commissioning the ESRI to assess the labour force available. The study will be available shortly.

A campaign to attract people to jobs in the Gaeltacht is also being undertaken.

"We are also examining the development, in association with education specialists and other institutions, of more conversion training programmes that will address specific skills needs and shortages within companies and sector," Mr O Bric said.

In 1997 a total of 1,700 new jobs were approved. Some have already come on-stream, but many are still due to be created. Approximately 40 per cent of the employment increases can be attributed to new companies.

The 1,700 jobs approved will involved a total investment of £66 million. This will include State assistance of £24.3 million. An additional £20.5 million was approved in respect of Udaras na Gaeltachta's capital programme. Last year's jobs were created in a variety of sectors, including technology, mariculture and fish processing, which now employs almost 300 people, and the audio visual sector. Udaras said the latter continues to be a major contributor to jobs. Full-time employment grew to 243 jobs and there are now 200 people employed part time in the industry.

It said many Gaeltacht TV producers have had an extremely successful year.

The average cost per job in 1997 was £10,400. This compares to £8,100 in 1996 and £9,700 in 1995.