Last year was one of the toughest years for job creation because of weakness in the global economy, the IDA said in its annual report published today. The report shows a net loss of 4,000 jobs in 2001.
Speaking at the publication of the report today, the IDA’s chief executive Mr Sean Dorgan said the ratification of the Nice Treaty will be crucial for future growth. "Business, and especially inward investment, is totally tied to our future in Europe" said Mr Dorgan.
He added that a decision by Ireland not to ratify will be seen as a withdrawal by Ireland from Europe. "If the Nice Treaty is not accepted, we are in danger of being presented – however unfairly – as unwilling to accept the challenges now posed by a larger EU, with new members joining who are less advantaged than we are, or were when we joined."
Mr Dorgan also said that competitiveness issues were a central concern for attracting foreign investment. He listed wage movements, roads and air access, energy, telecommunications, waste management and insurance costs among these issues.
The IDA said it was in favour of continued partnership arrangements but said that new approaches may be needed to cater for changed circumstances.
It suggested that the partnership might be based on commitments to deliver specific services and infrastructure rather than tax concessions, as in previous agreements.
Commenting on the current year’s activities, Mr Dorgan said "confidence is being restored and a recovery is underway in foreign direct investment (FDI) markets. We are seeing a turnaround from the slowdown of last year although it may be some time yet before a rapid pace of growth is achieved."
However, there is always a time lag between the renewal of investment and its full job creation impact. As a result, real recovery of jobs growth may not be seen until 2003, he said.
Last year 13,500 new jobs were created in IDA supported companies which was lower than the previous four years. But 17,500 jobs were also lost mainly because of the impact of the global slowdown of the IT sector, leading to the first net decline in employment in overseas companies in over ten years.
There are now 1,237 IDA supported companies in Ireland employing 138,000 people. They account for €47 billion worth of exports annually and spend €14.2 billion in the Irish economy.