THE strong flow of inward investment has led to £120 million being allocated to IDA Ireland to help fund job creation next year. This is slightly down on this year's allocation, which is £130 million, after a recent supplementary estimate.
On November 27th, the Government had to approve a supplementary estimate of £25 million to the IDA to top up the 1996 allocation of £105 million.
The IDA is forecasting another strong year for job creation, according to Government sources.
To the end of October, the IDA had grant aided 46 new greenfield projects and 56 new projects by existing companies. The projects have a combined jobs potential of over 16,000 new jobs.
The extra money represents a 14 per cent increase on last year's Estimates. In contrast, Forbairt, the State body charged with developing indigenous industry, will see its grants to industry cut by 10 per cent. It has been allocated £49.5 million in 1997, compared to £55 million this year for this purpose.
The Estimates also contain a substantial increase in funds being allocated to Job Start. This scheme provides for a grant to employers of £80 a week when they take on someone who has been unemployed for more than three years.
The Department of Enterprise and Employment has been allocated £5 million for the Job Start scheme, up from £1 million in this year's Estimates. The scheme aims to place 5,000 people within three years.
Launched last July, only 500 applicants have been approved, with a further 100 awaiting approval. A Department spokesman said last night that the take up had been slower than expected.
A spokeswoman for the Irish National Organisation of the Unemployment, which is getting a £33,000 grant in this year's Estimates, said many unemployed people had not been aware of the scheme. She called on the Government to do more to publicise it and to show more commitment to the development of local employment services.
These are "one stop shops" for the unemployed where they can learn about what training programmes and other initiatives are available.
The 1997 Estimates provide for £7.4 million for the local employment services, up from £6 million this year. However, only £4 million was spent on these services, according to the Department of Enterprise and Employment, which admitted the take up was slow.
It is proposed to set up another four employment services - currently 14 are in existence around the State.
The Department of Enterprise and Employment has estimated that it will spend £692,587,000 next year. The figure represents a net increase of £42 million, or an increase of 6 per cent on the 1996 figures.