Widespread local disappointment has greeted the decision by a US technology company to defer indefinitely an 800-job investment in Co Cavan.
The announcement by Teradyne Inc to defer its arrival at a 94-acre site on the outskirts of Cavan town came days after planning permission for the development on a greenfield site was granted after a long delay.
A spokeswoman for Teradyne, which supplies equipment to the telecommunications industry, said the company was not now proceeding with the purchase of the site. Some 760 jobs were to have been created over five years, said the IDA.
Teradyne made the decision following losses of more than $50 million in the third quarter of this year. The company last year announced its investment in Cavan "due to the boom in the internet and electronics industries across Europe".
Almost exactly a year later, the company said in a statement: "Business conditions are extremely difficult at this time and future visibility is limited. The significant global downturn in the internet and electronics industries, which the company supports, make it difficult to commit to a major expansion at this time".
The Tβnaiste, Ms Harney, called the announcement a "huge blow". A spokesman for the IDA said it had been involved in extensive talks with the company over the past week, but the IDA believed it would be at least a year before a company such as Teradyne would again be in a position to invest.
The company employs 250 people in Dublin and had already taken on 42 employees at an advance factory in Cavan. The deferral "was not a surprise as such", said Mr Brian Johnston, county manager, Cavan County Council. "You could see the indicators from looking at the recent trends in the technology sector."
He said the facility would have been the first major inward investment in the county in decades. It would also have given "a new feeling of hope" for employment in the region, which he says has not really benefited from the economic dimension of the peace process. Attracting inward investment was, he added, "beyond the capabilities of Cavan County Council".
Mr Andrew Boylan, Fine Gael TD for Cavan-Monaghan, said last week's "devastating" announcement was a "serious body blow" for the town, which had been excited about the arrival of the industry.
Teradyne moved into an advance factory and local developers planned further housing in the area, said Mr Boylan.
Sources have stressed Teradyne had only deferred rather than abandoned its arrival.
People in Cavan were "quite anxiously awaiting" the investment, said Mr Seβn Roche, north east regional manager, F┴S. One particular advantage of the investment was the mix of jobs, between technical and general operative, which were due to be available.
The Border region, which has IDA priority status, needs the jobs. According to figures for August 2001, 1,903 people were on the live register in Cavan, a drop of just 11 from the same time last year, Mr Roche said.
One-third of the jobs were to go to graduates, said Mr Vincent Reynolds, the chief executive of Cavan County Enterprise Board, adding that Cavan had an influx of "a couple of thousand" young people at the weekend, who travelled elsewhere for work.
According to the IDA, the company said there were no factors particular to Cavan which influenced its decision. It regretted its decision not to invest further in the county. The IDA has said the logic of choosing Cavan as a location remains, but the world market has significantly altered.
Cavan's location, as local politicians and business people readily acknowledge, has been a problem for its development. Lack of confidence due to violence in the North, no inward investment and low levels of business start-ups were all impediments for the region's development.
A spokesman for the IDA said the facility would have been perfectly in line with its plans for the region. This strategy had two tiers: the attraction of a good manufacturing industry, such as Teradyne, and then the development of high-end services.
Mr Reynolds said the first phase of a £2.5 million Cavan Innovation and Technology Centre was almost finished. It will house the headquarters of the IDA for the Border region and the County Enterprise Board, among others.