A Northern Ireland Audit Office report has found that the number of jobs created by the Industrial Development Board was "significantly less than promised". The SDLP has urged the IDB to seriously rethink its investment strategies.

The report showed that of 37 projects supported by the IDB between April 1988 and March 1997, only four had actually met their job targets. The IDB achieved its annual targets for job promotion in only four of the nine years to March 1997. The four-year period from April 1992 to March 1996 was the most successful, with the level of jobs promoted showing a marked increase over the earlier years.

Overall the number of jobs created was significantly less than promised. In a survey of 37 projects, the Audit Office found that only 17 (46 per cent) were operating in March 1997 and of these only four (11 per cent) had achieved or exceeded their job targets.

On average, the peak proportion of jobs created was 40 per cent of those promoted. In March 1997, the level of actual jobs in place averaged 17 per cent of those promoted. The report concluded that "a substantial proportion of jobs promised were not, in fact, created and a significant percentage of created jobs were of limited duration".

Of the 79 companies offered assistance, 11 had subsequently ceased trading by April 1997. Nine other projects were abandoned before receiving any financial assistance from the IDB. In total, these 20 projects had promised 1,858 jobs - 12 per cent of the total jobs promoted in the nine-year period.

In that time, 41 per cent of jobs promoted and 45 per cent of total planned investment were located in disadvantaged areas. Derry District Council area was the most successful location, attracting 26 per cent by value of total planned investment and 20 per cent of jobs promised. Seven areas attracted no projects, including two areas of social need - Moyle and Strabane.

The level of IDB contribution at 65 per cent (£3.7 million) far exceeded the normal 50 per cent maximum threshold of public funds contribution. In five of the six cases examined, the IDB's test of efficiency indicated that the projects would be likely to produce net losses - ranging from £1.2 million to £14.7 million - to the British economy.