More than 3,200 new jobs were created in the Shannon region last year, according to Shannon Development's annual statement.

The State agency's target - to create 23,000 jobs between 1995 and 2000 - now looks like being met. However, it warned that shortfalls with infrastructure in the region could endanger future job growth. Traffic congestion was also becoming a major problem.

In particular it said the road and rail network in the area needed new investment and services at Shannon airport may have to expand further.

This year the company will be seeking to join with other interests along the western seaboard to develop a regional transportation plan for the area, it said.

Shannon Development itself spent more than £11 million (#13.9 million) on infrastructure in the region in 1998, refurbishing industrial estates, upgrading enterprise centres and constructing new industrial units.

However, it said the infrastructural difficulties would not hamper job growth in the short term. Chief executive Mr Paul Sheane said: "Given that each of these 3,200 jobs yields at least one additional indirect job in the wider services and support sector, this means that 6,400 people were employed in the region in 1998."

Of the 3,200 jobs, 1,200 were in indigenous industry, about 1,000 were in the tourism sector, with the rest in overseas companies settling here.

Mr Sheane said because future growth was dependent on investment, Shannon Development would be investing £42 million (#53.3 million) in new buildings and infrastructure, starting this year. He added that much of this finance would be sourced in the private sector.

In 1998 Shannon Development made £1.7 million (#2.5 million) of equity investments in 12 companies in the region. The company's current investment portfolio now amounts to more than £13.2 million (#16.7 million) in 41 companies throughout the region.

Shannon Development has been expanding its land holdings during the year in Ennis, Co Clare; Tralee, Co Kerry and Limerick city. Mr Sheane said serviced land was "instrumental in attracting new projects to the region and facilitating the expansion of existing projects".

It secured almost £17.5 million during the year through the Operational Programme for Tourism and used the funds to support 62 new tourism projects.

In terms of the tourism market, Mr Sheane said domestic visitors continued to be the most important group and he expected the spending by them in 1998 to be in excess of £92 million.

The company is assuming the responsibilities of Enterprise Ireland in the area and said it would "soon be in a position to offer a fully integrated service to its indigenous industry clients".

While the outlook for the year was positive, Mr Sheane said the company was aware that any slowdown in the global economy could have a negative impact on the region.