The internet service provider, AOL, has announced that it will create 125 jobs at its call centre in Waterford, bringing the overall number of employees at the four-year-old facility to 650.

The Tánaiste, Ms Harney, announced the employment boost during a visit to Waterford yesterday evening when she also officially opened IDA Ireland's new offices at the Waterford Technology Park.

The AOL jobs will be primarily in the technical support, sales and customer services.

The expansion makes the Waterford call centre AOL's largest facility in Europe.

Waterford-based AOL vice-president, Mr Tony Hanway, said, "Our Waterford expansion is testimony to the growth of the AOL business, the early success of our new broadband product and our commitment to providing members with the best possible customer service. It also demonstrates the dedication and performance of our existing team.

Speaking at the new IDA Ireland office, the Tánaiste said, "This high-profile office is a continuation of IDA's relocation of some of its activities to the regions and is in line with the National Development Plan's focus on balanced regional development. The strengthened IDA presence in Waterford will stimulate further economic development across the whole south-east region.

"IDA is one partner in the effort to achieve further economic development across this region and it is encouraging that various organisations are working together in this regard.

"The aim should be to provide the south-east with the critical mass necessary to attract new foreign direct investment and it is my strong recommendation that you think and act as a region, not just locally. After all, regions have to compete globally, not locally. Waterford city should be viewed as a gateway, with its seaport, airport, Institute of Technology and established infrastructure, from which benefits will spread throughout the whole region."

The new IDA office houses national development activities for three sectors - information and communications technology (ICT), engineering and consumer products - which have transferred from Dublin. It is also IDA's headquarters for the south-east region.

IDA Ireland chairman, Mr John Dunne, stressed that the agency was fully committed to attracting further new foreign direct investment to the south-east.

"We see this new office adding further impetus to our work and increasing the profile of the region as a competitive location for such investment.

"We want to see growth driven from within the region and to see it creating its own attractions for investors."