IDA bullish on prospects for 2004

IDA Ireland is extremely upbeat about this year's job creation prospects and believes its focus on the research and development (R&D) sector, in particular, will soon pay dividends. The sector is seen as important to economic growth as although it does not provide jobs in very high numbers, they are key posts which help to underpin existing multinational employment.

In addition, at least one multinational is expected to locate its European headquarters here, creating 100 jobs before the end of the year, IDA chief executive Mr Seán Dorgan said yesterday.

Speaking after the agency had launched its annual report for 2003, he said that the tax incentives for Irish-located corporate headquarters created in the last Budget had attracted interest from overseas companies.

Mr Dorgan said the projects involved around 100 jobs. At least one is expected to confirm its intention to establish operations here in the near future.

The IDA also hopes to make at least one significant jobs announcement next week. Earlier this week, Elan revealed that it intended to create 120 jobs here in a new €35 million sterile plant in Athlone, Co Westmeath.

Speaking yesterday, Mr Dorgan said it was clear that the Republic had weathered the downturn of the last three years very well.

"It proves that there is an enormous amount of flexibility in the Irish economy," he argued. "During the boom, Irish managers had been looking at ways of extending their companies' mandates, and that helped to differentiate us from our competitors.

"There will be good foreign direct investment (FDI) this year and we are expecting good amounts of it," he said. However, Mr Dorgan added that the agency was not interested in simply playing a numbers game and was focused instead on the quality of investment that it was attracting to the Republic.

IDA Ireland's annual report shows that the total number of jobs in agency-supported companies grew by almost 9,200 last year to 129,000. More than 7,000 of those new jobs stemmed from first-time investors.

It is optimistic about prospects for the rest of 2004. In a statement, it said that Intel's decision to invest €1.6 billion in a new wafer-fabrication plant at its Leixlip, Co Kildare, base was the single most important development for the agency this year.

"A number of other top quality investments negotiated by the IDA and likely to be announced over coming weeks add to the IDA's optimism that 2004 will be a strong year for FDI," the statement said. Chairman, Mr John Dunne, said international companies were beginning to lift their levels of investment.

He pointed out that in the US, the Republic's most important source of FDI, the pharmaceuticals and biotechnology sectors were expected to grow by 8-10 per cent this year, while medical technologies, another key industry, anticipated growth of 5-7 per cent. The software industry is set to expand by 6-8 per cent, Mr Dunne said.

Mr Dorgan, the agency is delivering high-quality jobs. He said 40 per cent of the new jobs announced here this year paid annual salaries above €37,000. This is the benchmark that IDA Ireland uses to define high-skilled employment.

Mr Dorgan said progress had been made in attracting and supporting research and development (R&D) projects. The Government specifically targeted this area in the National Development Plan five years ago, but has been criticised for the slow progress being made.