EMPLOYMENT IN the Shannon Free Zone dropped by 4 per cent last year, according to Shannon Development’s annual report.
Figures show 362 jobs were created in the free zone last year, but this was outweighed by a loss of more than 600 jobs.
Shannon Development chief executive Dr Vincent Cunnane stressed that the losses were the result of downsizing of companies rather than closures.
Mr Cunnane also pointed to the fact that there were now 101 companies operating out of the free zone compared with 100 in 2009.
Some 6,600 people are employed by Shannon Free Zone companies which collectively contribute more than €600 million to the economy annually in areas such as staff payroll, material and services.
“Last year Shannon Free Zone companies generated almost €3 billion in sales,” Dr Cunnane said. “In-house research and development expenditure by Shannon Free Zone companies saw a 16 per cent increase over the previous year to €56.4 million.”
Warning about the continued threat to Ireland’s corporate tax rate, Dr Cunnane said multinationals would not consider investing abroad if they were forced to pay more for borrowings.
“This is one of the reasons why it is imperative that we continue to be vigilant about protecting our 12.5 per cent corporate tax rate which will be a vital engine for economic growth,” he said.
“Ireland’s competitive corporate tax rate is essential in safeguarding the investments we have already secured and an important selling point in helping us secure new investors. We cannot afford to become complacent on the issue,” he added.
Shannon Development owns and manages 55 technology parks, industrial estates and business parks around the Shannon region.
In its role of providing solutions to attract entrepreneurs, the tourism authority completed investments of more than €7.5 million in a range of property solutions for foreign and indigenous companies last year.
Among these was a major €3.6 million expansion at Tipperary Technology Park, opened in June 2010.
The company said yesterday that rental income for 2010 was down €2 million on the 2009 figure to €13 million.
It also said tourism businesses in the Shannon region are reporting an increase of up to 12 per cent in business for the first half of this year, compared with the same period in 2010.
Visitor figures for the Cliffs of Moher tourist attraction were up 19 per cent in the first six months of this year.
“We are encouraged by the feedback we are getting so far this year from members of the Shannon region tourism trade who are reporting increases of between 10 and 12 per cent over the same period last year,” Dr Cunnane said.
“While 2011 will continue to challenge certain tourism sectors, there are encouraging and tangible signs of growth.”
According to its 2010 annual report, Shannon Development’s tourism campaigns generated €39 million in visitor spend and more than 484,000 additional bed nights for the region.
Projects valued at more than €14 million were secured by the company in 2010 – among them a €5.7 million fund to redevelop King John’s Castle in Limerick city.
Fifty-seven jobs will be created as a result of the project, 40 during construction and 17 when work is complete in 2012. A design team to carry out the work is expected to be announced shortly, with the project due to start in September.
