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Dáil Éireann díospóireacht -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Written Answers. - Job Creation.

Jan O'Sullivan

Ceist:

128 Ms O'Sullivan asked the Tánaiste and Minister for Enterprise, Trade and Employment the number of jobs created to date in respect of the series of job announcements made by her on 18 April 2002, in respect of Galway, Limerick and Birr; when it is expected that the balance of the jobs will be created; and if she will make a statement on the matter. [18469/03]

On the 18 April 2002 I announced that Thomson NETg, one of the world's leading providers of learning solutions to the corporate and academic markets, was to expand its e-learning product development and innovation centre operation in Limerick with the creation of 360 new jobs, bringing total employment at Thomson NETg in Ireland to 700 by the end of 2005. As part of the expansion the company agreed with IDA Ireland that up to 80 of the new jobs created would be located in Birr, County Offaly, in addition to the key Limerick facility.

IDA Ireland has informed me that due to the current economic climate, and particularly that in the e-learning field, NETg has had to postpone its expansion plans. In December 2002, the company downsized by 50 employees, bringing its current employment to 193. NETg's operations in Limerick has stabilised with this rationalisation. IDA Ireland has indicated that the company is comfortable that it will be able to proceed with its expansion at a later date. To date NETg has not started up operations in Birr.

On the 18 April 2002 I also announced that Churchill Insurance Group plc, the fifth largest general insurance company in the UK, was to start up and create 600 new jobs over the next five years in Galway.

By November 2002, the date of the latest Forfás annual employment survey, 122 new jobs had been created. Job creation figures for 2003 will not be available until November 2003, the date of the next Forfás annual employment survey.

The number of jobs quoted in announcements frequently refer to the number of jobs, which a company expects to create over a number of years. Only a small number of jobs announced in any given year would normally be expected to be created by November of the same year – the date of the Forfás Employment Survey – as there is usually a time lag between the announcement of new jobs and the creation of those jobs. Factors, which influence this time lag, are the time taken to: locate and acquire a suitable site for the companies' operations; construction of the facility and installation of plant and machinery – in the case of manufacturing plants; and recruit and train staff.

I am confident that the strategies and policies pursued by IDA Ireland, together with the continuing commitment of the Government to enterprise attraction, growth and development will ensure that Ireland remains a competitive location for FDI.

Question No. 129 answered with Question No. 84.

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