Shift of emphasis away from jobs target marks change of philosophy

IDA Ireland's claim that it had no target number of jobs it wanted to create this year marks a radical shift of emphasis. Now describing itself as an "investment and development agency", the former jobs' body says merely counting the number of positions created in a time of full-employment is no longer the best measure of success.

The agency's raison d'etre until recently was merely to create jobs, but it argues its latest move is a natural one. In other words, the focus remains on attracting investment, but projects will be judged on the quality and location of jobs created. Crucial will be links between investors and local educational and research institutions.

For the body which supported 141,258 jobs in 2000 in 1,278 firms, the change had been signalled.

A year ago, for the first time, IDA Ireland said it had reduced its job creation target - to 12,000 from a record 17,800 in 1999. As it happened, speedy growth prompted yet another record year - the agency helped create 24,717 jobs, more than twice the target. It paid £118.5 million (#150.5 million) in grants and estimated the companies it supported paid £1.3 billion in corporation tax.

IDA Ireland's chief executive, Mr Sean Dorgan, yesterday warned that job creation was likely to create 12,000 this year, though he said that was not a target per se. He attributed the likely fall to the volatile economic situation in the US and Europe.

Mr Dorgan said the agency's only target was an "internal" one, for jobs in the Border, Midlands and West region (BMW), where the agency wants to locate half of all jobs in greenfield projects.

Half of all jobs secured last year in greenfield projects were located in the BMW region, though Mr Dorgan said meeting that target this year would depend on its ability to secure a large investment there.

Part of the plan involves the transfer of 50 IDA Ireland staff from its Dublin base to offices in Athlone, Sligo and Waterford - 30 will move to Athlone with two groups of 10 moving to Sligo and Waterford.

IDA Ireland wants these projects to act as growth "magnets" for regional economic centres in areas which Mr Dorgan said were "doing less well" in the boom.