Enterprise Ireland firms commit to creating over 3,750 jobs

Companies supported by Enterprise Ireland have committed to creating 3,755 jobs so far this year, many of them in the food sector, it emerged yesterday. The commitments over the first six months, which were up 20 per cent on the same period of 2013, were made within business plans submitted to Enterprise Ireland, with such plans usually covering a three-year period.

Julie Sinnamon, chief executive of the State agency charged with helping Irish businesses to grow their exports, said the food sector is in expansion mode as it pre-empts the end of the milk quota system next year. She said this meant the "brakes were off" for many companies in the area, with a boost in activity also rooted in the likely impact of forthcoming changes to state aid rules.

Ms Sinnamon was speaking at the launch of Enterprise Ireland’s annual report for 2013, which showed that the agency’s client companies grew exports by 8 per cent to €17.1 billion last year, with the strongest increase (20 per cent) recorded in sales to the Asia/Pacific region.

Food accounted for 55 per cent of total exports in 2013, growing by 9.6 per cent, or €830 million, over the 12 months.

Ms Sinnamon described last year’s performance by Enterprise Ireland companies as “tremendous” and said Purchasing Managers’ Index data pointed to a positive outcome for this year too. The PMI was the first indicator that had suggested “things were going south” as the economy headed into recession, she said.

The 2013 report also confirmed earlier data showing that Enterprise Ireland companies created a net 5,442 jobs during 2013, the biggest increase in a decade. At the end of the year, according to the agency, its clients were supporting more than 300,000 jobs, either directly or indirectly, in the economy.

"These figures are really impressive," said Richard Bruton, the Minister for Jobs, Enterprise and Innovation at the launch, adding that the 2013 performance was "well ahead of what was happening in world markets".

Enterprise Ireland took in dividends of €3 million from companies in which it held investments over 2103, marking a 65 per cent increase on 2012. The agency had also been due to collect €2.2 million in dividends from companies that were liquidated or dissolved during the year, while some €11 million was written off on such ventures.

“As a development agency, you have to accept there will always be a level of failure in start-up,” said Ms Sinnamon, describing the total as “a low level of write-offs”. Many would argue the agency should be prepared to take greater risks with “disruptive” investments that could win or lose to a greater extent, she said.

She also said the State needs to grow its population of middle-sized companies to allow more firms to achieve scale internationally.

Enterprise Ireland data suggests that for every 10 jobs created in an Irish exporting company, 13 additional jobs are created elsewhere in the economy, through supply or service relationships. These Irish firms account for €20.28 billion in domestic spending, according to the same analysis.

The annual report details 18 minister-led trade missions organised by Enterprise Ireland last year and attendance at a further 67 international events, with more than 1,000 client companies involved. The agency opened offices in Istanbul in Turkey and in the US city of Austin, Texas.

It also brought more than 1,100 “targeted” international buyers to Ireland to meet client companies and established a new sourcing team to help clients to win a greater share of the procurement spend of multinationals operating here.