Almost 160 new jobs are to be created in the seafood processing sector as part of a new initiative announced today.

The jobs, which will be created around the country over three years, come as the State provides grant aid of €1.7 million to help businesses in the sector generate efficiencies.

Minister for Agriculture, Food and the Marine Simon Coveney said the jobs would be a huge boost to local economies, many in rural coastal communities.

Mr Coveney also announced a pilot jobs initiative for the Killybegs region, which is aimed at creating 250 jobs in the area by 2014.

The decision to implement the scheme came following an EU study on the status, development and potential diversification of Killybegs as a community dependent on fisheries.

"It is clear from this economic report that significant job creation potential exists for fisheries dependent regions like Killybegs, provided there is a focus on the natural resources that are obvious to the region," Mr Coveney said.

"I am conscious that there needs to be greater integration and 'joined up thinking' from state agencies and stakeholders in the region if this potential is to be achieved."

An expert group, which includes representatives from the Killybegs Fishermen's Organisation, Bord Iascaigh Mhara, Enterprise Ireland and local authorities, has been established to identify job creation opportunities.