The former Taoiseach, Mr Albert Reynolds, has said the planned closure of a factory in Longford town before Christmas has "everything to do with politics".
Last week it was announced that another 112 jobs are to be lost in the town when the IEC plant closes. Mr Reynolds spent most of his political life in Longford and built up a political base which made him Taoiseach.
"The truth is that I have no more political clout where it matters and the IDA and Enterprise Ireland only respond to political pressure," he said this week.
"There is an advance factory sitting idle in Longford for years now and I doubt if there is any other place in the country where this would happen. In fact, we are back where we started. My own company, C & D Foods, is once again the largest employer in the Longford town area."
He said he was using his overseas contacts to get a new tenant into the former Atlantic Mills plant, which closed earlier this year.
"For reasons of confidentiality I can say nothing but I am hopeful of some advances. Unfortunately, I have no clout where it matters any more."
He said there was no reason why service industries in the healthcare, telephone support and other areas of industry should not come to Longford.
There was an angry response by a spokesman for Enterprise Ireland to Mr Reynolds's claim that politics was involved. An IDA spokesman said it was its policy not to comment on political statements like those made by Mr Reynolds.
"However, I can say that in the last year 1,000 jobs have been lost in the midlands but most people seem to forget that we have announced the creation of 1,000 jobs as well.
"We are trying to get higher tech jobs into the area because that is what is needed there and as everyone knows there is no instant solution to the problem.
"Anyone who would care to inquire would know that we brought 30 potential overseas investors into the area last year but none of them returned."
He said what was needed in the midlands was a co-ordinated approach to job creation which would involve upgrading infrastructure.
Ms Margaret Dealy, IDA regional manager in the midlands, said what Longford needed was a "buzz" which would encourage business people to invest.
She said the jobs which had been lost were in the low-tech tradition, mobile jobs which could be carried out almost anywhere. "The competition for jobs is fierce, not only from Scotland and Wales and other countries, but from the other regions in Ireland as well. We have serious disadvantages here in the infrastructure. Our roads are bad, especially in Longford, and we need to develop the transport system because we are more than an hour from an international airport or port.
"However, I have great belief in the people of this area and I know that if they continue to develop the tourism base, which has been happening, the rest will follow.
"I think if local people create an interesting environment for people to live in, that will be picked up by visiting business people and they will invest."
She said this was evident in towns like Tullamore and Athlone where there was considerable interest by companies in investing.