THE GOVERNMENT has approved IDA support for a £20 million expansion at Dell Computer, Limerick, which will create 500 extra full time jobs and 250 contract positions.

This will bring employment at the plant to over 1,400 over the next three years, making it the largest in the region with 1,000 more than were employed at Ferenka at its peak.

The Minister for Enterprise and Employment, Mr Bruton confirmed that negotiations were at a critical stage for another major US electronics firm to come to Limerick. The company's decision is expected within the next ten days. Another major telecommunications project, expected to bring almost 500 jobs to the north east is to be considered by the Cabinet today.

Mr Bruton said Dell was a remarkable company and the announcement was a vote of confidence in Limerick and of its strong commitment to Ireland, where each job with the company leads to at least one more in the Irish economy". About half the new jobs will be for graduates, mostly in the electronics and engineering sector.

He said that, since it was opened in Limerick five years ago, Dell had spent more than £165 million in the Irish economy. This figure had grown to £60 million annually.

Mr Kieran McGowan, chief executive of IDA Ireland, said it was encouraging other companies to follow the Dell pattern.

Mr Philip Hubble, vice president of Dell Operations, said the Limerick plant was "a model for our business".