LAST March, the Minister for Enterprise and Employment, Mr Richard Bruton, met officials from IBM in the United States for a breakfast meeting in Dublin's Shelbourne Hotel. The meeting, over coffee and Danish pastries, had been set up by William Burgess, IBM's managing director in Ireland.

Its purpose was to demonstrate to IBM that Ireland was capable of facilitating further IBM business operations - the company already employs 800 people in the State.

The meeting lasted two hours and turned out to be part of what IDA Ireland says were probably the most complex and arduous negotiations it has ever undertaken.

Yesterday, those negotiations paid dividends, translating into 2,850 jobs, a £220m million investment and a £50 million annual wages bill. IBM will build a campus development which, says Taoiseach John Bruton, will put Ireland centre stage in the world of electronics.

IBM has been restructuring its global operations since 1993. Like other job creation agencies around the world, the IDA had known for some time that there was the possibility of winning a project from IBM.

The meeting in March was what the participants termed ban issues meeting". The details of what IBM sought began to emerge. However the IDA was keen to develop a multi project operation, rather than a single component facility.

IBM kept talking about a number of possible projects - a complicating factor which meant the scenario kept changing.

Mr Patrick Toole, senior vice president, manufacturing and development at IBM, was the key player in the negotiations. Although based in the United States, he was overseeing the re focusing of the manufacturing divisions on behalf of IBM.

He had been in Ireland several times and was well disposed towards the country. But the Republic faced intense competition from other countries keen to land IBM - the blue chip of the electronics sector.

Earlier this year, IBM began a 750 job tele services project in Blanchardstown, west Dublin. The plant employs 300 people. It took just 98 days to bring the tele services plant into operation. Such efficiency was not lost on IBM, which yesterday paid copious tribute to both local and national Government.

As the year progressed, however, and negotiations between the IDA and IBM continued there was still no guarantee that Ireland was going to clinch a deal.

Enterprise and Employment Minister, Mr Bruton said IBM put Ireland through its paces and was very questioning in its approach. He met IBM in New York on September 24th for another meeting. It was part of a six city, six day marketing blitz.

At that meeting a lot more details were discussed. The Government was keen to impress on IBM what it could offer. It was, said one participant, a meeting aimed at keeping Ireland in the frame".

Competition from other countries, including the IDA's old adversary - its counterpart in Scotland - was still intense.

Also vying for the business were several of IBM's existing plants around the world, including the US and Germany. One of the IDA's tasks was to persuade IBM to establish a greenfield site in Ireland.

At the stage the campus idea - having a number of separate plants in one location had taken firm hold. The IDA and the Government were convinced that a deal which involved manufacturing, research and development and a host of other facilities was the right one to pursue.

By October, both parties were clear on what the package would involve, including grant aid which was considerably higher than the normal £10,000-£12,000 per job created.

On November 1st another meeting took place between the IDA, the Minister Enterprise and Employment and IBM officials, again at the Shelbourne Hotel. This proved to be the pivotal meeting.

The package was put together, the final details were agreed. Assurances were given that there would be no hold ups regarding the planning process.

The IBM board signed off on the deal three weeks ago. Cabinet gave its approval on Wednesday of this week for most of the Ministers present this was the first time they had heard of the project. Yesterday the deal was officially announced.

For the IDA and the Government this project represents a considerable coup. Not only have they out manoeuvred other European job creation agencies, but they have landed one of the biggest manufacturing projects ever undertaken in Ireland.