IDA-backed multinationals created 1,350 net new jobs last year, agency figures show

IDA Ireland-backed multinationals created 1,350 net new jobs last year, according to figures released by the development agency.

The IDA’s interim statement for 2010, published yesterday, shows that multinational companies that the agency supports created 10,897 new jobs last year.

The organisation’s chief executive, Barry O’Leary, noted that as about 9,545 jobs were lost in multinationals in 2010, the net gain was 1,352.

He added that some of the job losses were the result of closures announced in 2009. These included high-profile casualties such as computer manufacturer Dell and aircraft maintenance specialist SR Technics.

The IDA’s chairman, former CRH chief executive Liam O’Mahony, argued that achieving “any net gain” in a global recession should be regarded as a strong performance.

Mr O’Leary said the total number of jobs created by agency-backed companies in 2010 was well ahead of the 4,615 achieved in 2009 and of the 7,000 target the IDA set itself for last year.

The IDA’s main responsibility is to attract multinational investors to the Republic. This year it hopes to bring in projects that will lead to the creation of 10,000 new jobs.

Mr O’Leary said that, in light of its performance in 2010 and its current pipeline of projects, it should reach this target.

In the longer term, the IDA aims to bring in 640 investments, creating 62,000 new jobs, by 2014. Mr O’Leary said every three jobs created by a multinational resulted in the establishment of two new jobs in the wider economy. As a result, creating 62,000 jobs in the multinational sector would result in 105,000 new jobs overall in the State over the period.

The agency also wants to be in a position where 50 per cent of investors are going to locations outside Cork and Dublin by 2014.

A key part of IDA Ireland’s remit is to sell the Republic as a centre for research and development to the multinational sector. The figures it released yesterday show that multinationals committed €500 million to such projects in the Republic during 2010.

These included United Technologies, which is spending €20 million on an energy research centre in Cork, technology giant IBM, HP and consultancy firm Accenture.

A number of existing investors committed to expanding their presence in the State during last year, including the dominant internet search player, Google, whose European headquarters is in Dublin, as well as networking sites Facebook and Linkedin, and gaming specialists EA and Riot.

The agency also brought in a number of new investors to the Republic, including pharmaceutical player Warner Chilcott, business information specialist Dun Bradstreet and global executive search firm Spencer Stuart.

The agency gives grants to support investments in the border, midlands west region and for strategic activities, but it does subvent every multinational that sets up or expands in the Republic.

The agency did not reveal how much it paid out in 2010. This figure will not be finalised until it publishes its annual report later in the year. Mr O’Leary estimated it at between €80 and €90 million.

In 2009, it distributed grants worth €81 million. The amount it pays out in a given year does not necessarily relate to the actual jobs created during that period, as it only makes the payments once companies have met agreed targets.

IDA-backed companies account for €110 billion, or 75 per cent, of all exports from the Republic, employ about 240,000 people directly and indirectly and pay 60 per cent of all corporation tax.

Minister for Enterprise, Trade and Innovation Batt O’Keeffe pointed out yesterday that the Government had made it clear that it remains committed to maintaining the Republic’s 12.5 per cent corporation tax rate, which is one of the main reasons that multinationals establish bases here.