State-supported firms not hit by US downturn

The downturn in the US economy had not affected Enterprise Ireland-supported firms, the State agency's chief executive said at the publication of its end-of-year report.

But it was likely to make it more difficult for them to raise venture capital, added Mr Dan Flinter.

"We've still had no indications from our clients that there has been a downturn in their order books from the US," he said. "Undoubtedly, the US market is going to grow more slowly and conditions are going to be tougher in coming months. Our current assessment is that the impact will be more likely felt in the form of raising venture capital from the US rather than affecting companies selling into the market place."

Mr Flinter's comments came on the back of continued strong performances by Irish-owned businesses.

Sales by Enterprise Ireland-supported companies grew by 7 per cent to £21 billion (€26.7 billion), according to Enterprise Ireland's end-of-year statement.

Exports were up by 6.5 per cent to £10 billion, with exceptionally strong performances in internationally-traded services, software, proprietary electronics products and prepared consumer foods, it said.

Almost 16,500 jobs were created by companies supported by Enterprise Ireland. But the net gain was 6,300 jobs as more than 10,000 jobs were lost in Enterprise Ireland-backed firms. Total employment in companies supported by Enterprise Ireland now stands at 146,000.

Mr Flinter said the agency was committed to balanced regional development. Nearly half of jobs created, however, were in Dublin, while the Border and midland regions experienced net losses of 316 jobs and 155 jobs respectively.

"Changing the nature of the existing industrial structure in regions such as the north-west and midlands is a priority," said Mr Flinter. A total of 240 major investment projects was agreed last year, Enterprise Ireland said. It added that 57 new high growth companies were established. Enterprise Ireland's equity portfolio yielded £80 million, with most of the money raised from the sale of stakes in technology companies Iona, Trintech and Parthus.

Eighty-two Enterprise Ireland-backed firms exported for the first time, while 66 companies established an overseas market presence, it said.

As part of Enterprise Ireland's process of helping companies develop long-term export marketing strategies, almost 500 firms participated in 30 trade missions to overseas markets and 2,500 international buyers were brought into Ireland to develop supply partnerships with Irish companies.

Mr Flinter said he anticipated a more turbulent business environment in 2001. While the US market and the British market, which alone accounts for 45 per cent of exports, will remain important, there was a need for firms to define a more balanced market portfolio, he said.

"Because of this there is a critical need for companies to actively investigate new markets," he said.