Forfas-assisted firms cut 3,500 jobs in 2001

The number of full-time jobs in companies supported by Enterprise Ireland, IDA Ireland, Shannon Development and Údaras na Gaeltachta fell by 3,500 (1.1 per cent) in 2001, the first such decline in a decade, according to the annual report of umbrella body Forfás.

However, the agency said other countries had seen manufacturing employment levels slip much further than the Republic, with the US down 4.2 per cent while Britain shed 3.2 per cent and Japan slipped by 2.6 per cent. Forfás also said the policies being adopted in the BMW region were beginning to pay dividends with those areas accounting for 25 per cent of the gross job gains in agency-assisted companies in 2001 compared with 17.8 per cent in 1999.

Forfás chief executive Mr Martin Cronin said competitive issues and the state of the US economy were key factors that would impact on the Republic's prosperity in the future. He added a rejection of the forthcoming Nice Treaty would have serious implications for the State.

"Were we to opt out of the enlargement process it would be a clear signal to international business that we are not fully committed to international trade and not confident of our ability to prosper in an open-market environment," he said. "This would create greater challenges for us than those of EU enlargement."

Mr Cronin also said the State's continued economic success was dependent on "a common sense of purpose" from all. "This will be required to achieve slower pay and price growth so that the economy can remain robust and competitive and maintain the progress made in recent years," he said.

Direct expenditure by Irish enterprise development agencies was up in 2001 to €846 million from €786 million in 2000. The average cost per job sustained in the seven-year period to 2001 was €11,500, the lowest level recorded.