Austin Deasy
Question:71 Mr. Deasy asked the Minister for Enterprise and Employment the estimated cost to the taxpayer of creating a job in the manufacturing industry.
Written Answers. - Job Creation Costs.
I understand from Forfás that the grant cost per job created and sustained in companies grant aided by the former IDA in the period 1987-93 was £12,783. This figure is based on the sum of all IDA grant payments over a seven year period, divided by the number of first time jobs created and still in existence at the end of that period.
For the purpose of this calculation, a first time job is defined as the increase in employment in a company over and above the peak employment level in the previous five years and related to a specific investment programme agreed with the IDA, or Forbairt and IDA Ireland as it is now.
All grants paid by the IDA are incorporated in the calculations including capital, leasing, training, employment, interest subsidies, rent reduction, research and development, technology acquisition, management development, and feasibility grants, as well as loan guarantees and equity.
Tax reliefs which are allowed by the State are not included in the calculations, nor are tax revenues accruing to the Exchequer from the companies involved.