More than 200 new jobs are likely to be created over the next three years in five Irish-owned companies in Co Donegal. The total investment is £8 million (#10.1 million) and is being supported by Enterprise Ireland.

The Tanaiste, Ms Harney, who made the announcements in Donegal yesterday, also visited the site of a new £2.1 million business centre in Letterkenny. The Enterprise Fund Business Centre, due to open in October, will provide office, technology and light industrial space.

Speaking about the five companies located in Carndonagh, Moville and Letterkenny, Ms Harney said some of them were located in the most peripheral regions not just of Ireland, but of Europe.

She said she believed the future for many towns in Donegal was in investments in small to medium-sized companies rather than an over-dependence on one very large company. This has been the lesson learned from Fruit of the Loom.

Most of the jobs are expected to be created at a software company in Moville. Iontas, which began operations last year, already employs 11 people and plans to increase this by more than 100 over the next three years.

Managing director Mr Martin McCreesh said he expected employment to reach 25 by the end of the year. He said the current downturn in the US would actually help his company because it developed software designed to help companies reduce costs and improve staff efficiency.

Two of the companies are in the clothing sector, Hamel Clothing in Letterkenny which is to increase employment from 26 to 41 over the next two years, and Moville Clothing where 17 new jobs have already been created.

Some 45 jobs are expected to be created over the next three years at Atlanfish, in Moville, which processes shellfish for the European retail and catering sectors. Donegal Meats hopes to create 40 new jobs over two years in Letterkenny.

The Donegal county manager, Mr Michael McLoone, said a seven-year development strategy was in place since the Donegal Employment Initiative Task Force published its report.