Report says partnerships' jobs cheaper to create than State-supported ones

Jobs created under the area-based partnerships initiative are almost three times as cheap as any other form of State-supported employment creation, according to a review of the first three years of the scheme. The review finds that since the partnerships were formed in 38 disadvantaged areas, almost 4,000 people have been placed in full-time jobs at a cost of £3,700 each. Another 1,200 have secured part-time work, while more than 3,200 have started their own businesses with the assistance of the partnerships.

The partnerships have been set up under the supervision of Area Development Management Ltd, a company established by the Government with EU approval to manage the £105 million allocation for the scheme. The company also compiled the report on progress made to date, which was published yesterday by the Minister of State for local development, Mr Chris Flood.

According to the report, the partnerships have been notably successful in securing jobs for the long-term unemployed, one of ADM's main targets. Some 57 per cent of job placements went to people in that category, while for those who started businesses the proportion was 80 per cent.

The authors compare this with figures which show only one in 16 job vacancies nationally are filled by a candidate who has been long-term unemployed. The report also notes that the failure rate of businesses in the partnership areas has been low. Up to 80 per cent of businesses were still operating after three years, it says.

Examples of initiatives undertaken by the partnerships include the Tallaght NEST project, which has helped establish 63 successful small businesses in the Dublin suburb, and projects involving shellfish harvesting and specialised horticulture in south Kerry.

The Ballymun partnership has assisted the development of a company which provides luggage-handling and other services at Dublin Airport.