Local firms enjoy boom year for trade

THIS year has been one of the best years for Irish-owned companies, with sales and employment both running strongly ahead, according to the State agency Forbairt.

Its end-of-year statement reports that sales in the indigenous sector increased by 8 per cent to over £13.5 billion, up £1 billion on 1995.

Companies assisted by Forbairt also saw the biggest increase in new jobs in 10 years, with 8,800 first time jobs estimated to have been created over the 12 month period. A further 3,300 jobs were recovered across a range of companies during the year, it said yesterday.

Forbairt estimates that the total net increase in employment in the indigenous sector was 4,700.

Overall Forbairt said it committed £102 million to support Irish businesses in 1996. Around 140 of those projects employed more than 15 people.

Commenting on the 1996 result chairwoman, Ms Eileen O'Mara d'Walsh said the indicators for Irish industry were very positive. Irish companies were now broadly on target to achieve sales of £15 billion and a net increase in employment of 12,000 by the year 2,000, she said.

According to Forbairt, Irish businesses continued to spend more money on research and development and general innovation this year, a factor which it believes is driving the sector's progress.

It has estimated that companies supported by Forbairt more than doubled their total investment in research and development in 1996 to almost £160 million.

Ms O'Mara Walsh expects that this trend will continue, with its clients indicating further such investment in 1997. "Forbairt's aim to see R&D investment double by the year 2,000, is achievable" she added.

More than 114 industry and higher education linkage projects were also supported in 1996, according to the statement.

Against a background of sustained economic growth Forbairt chief executive, Mr Dan Flinter, said he believed that Irish businesses will see further growth, in sales and employment again next year.

There are clear indications that company profits as a percentage of sales is also rising, adding to future investment confidence, he stated.

Forbairt had an exceptionally busy year, Mr Flinter said, with a significant level of business proposals negotiated and agreed. The agency has also played a role in developing a final framework to provide opportunities for companies and entrepreneurs to finance the long-term development of indigenous industry.

New venture capital funds, he said have been put in place with ICC Bank, and the Smurfit Venture Fund is open for business. Further agreements will be completed shortly, said Mr Flinter.