NET EMPLOYMENT in companies assisted by Údarás na Gaeltachta shrank by 8.8 per cent in 2009, despite the State agency responsible for job creation in the Gaeltacht area receiving total exchequer funding of €30.4 million.

In its 2009 review, Údarás na Gaeltachta said it had created 710 full-time jobs during the year in Gaeltacht companies. However, at the end of 2009, total full-time employment in Údarás-assisted companies stood at 7,472, down 8.8 per cent year-on-year.

“Gaeltacht companies faced challenges which mirrored those faced by other companies in the Irish economy during 2009,” the agency said, blaming factors such as the lack of access to credit and the fall-off in global markets.

Previously the agency had been able to supplement its budget through the sale of assets, it said. However, 2009 saw a “substantial” decline in such sales, due to the weak property market. When combined with exchequer cut-backs, this “greatly restricted” the capacity of Údarás to approve new projects and jobs. In 2009, total funding of €30.4 million was granted to the organisation, down from €37.6 million a year earlier.

The agency also said it will remain “very difficult” for it to meet its employment targets in the coming years. While employment in companies receiving assistance from Údarás contracted, exports by these companies grew by 9.4 per cent last year, it said.

As part of its 20-Year Strategy for the Irish Language 2010-2030, the Government has proposed that Údarás na Gaeltachta, which is currently responsible for the economic, social and cultural development in Gaeltacht areas, be restructured into a new national Irish language agency, Údarás na Gaeilge. However, last week a leading language activist, Donncha Ó hÉallaithe, warned that this proposal would have hugely damaging repercussions for the survival of Gaeltacht regions.