The chief executive of Shannon Development said yesterday that "hundreds of jobs" are to be announced for the Shannon Free Zone over the coming weeks.
Announcing that there is a "significant pipeline" of jobs for the industrial estate beside Shannon airport, Kevin Thompstone said: "We have had a good year, particularly in relation to the free zone, in expanding existing projects and landing new players.
Mr Thompstone declined to state how many jobs have been approved by the board, stating that it involves "hundreds of jobs". The company's end of year statement, published yesterday, found last year there was a net loss of 289 jobs in the free zone.
However, the overall results in the Shannon region in relation to Shannon Development-assisted companies shows that there was a net gain of 50 jobs, creating a total of 19,818 in the region.
The results show that last year, 1,795 new jobs were created in Shannon Development-assisted companies in the region. In relation to the free zone, 739 jobs were lost, with gains of 450.
However, under the company's new Government mandate, which has yet to be implemented and is being opposed by unions at the company, Shannon Development will no longer operate its core enterprise development functions, as they are being transferred to the IDA and Enterprise Ireland. It will retain responsibility for managing the free zone.
Shannon Development's chairman, Liam McElligott, said: "Thankfully, we are here with a clear cut mandate for the company in terms of economic development and a very strongly re-affirmed mandate in relation to tourism in our region.
Mr McElligott said that there was "an inordinate amount of pressure" on the company due to the uncertainty over its future.However, with the new mandate announced last July, Mr McElligott said: "We are looking forward to 2006, knowing what we have to do."
Asked about ongoing tension between the board and staff over the future role of the company, Mr McElligott said: "I am quite confident now that there is alignment in our thinking.
He said: "75 per cent of economic activity in this country happens in the greater Dublin area and Shannon Development has the mandate to create a counter pole to that, which we never had before. We are very happy it dovetails with Government policy."
He added: "Over the next five years, Shannon Development will invest €100 million in the Shannon region and leverage an amount in excess of that."
Mr Thompstone admitted that there will be "significant" job losses to the company as a result of the new mandate, but declined to state how many. The company's accounts for 2004 show that 75 personnel were engaged in industrial development.
Mr Thompstone said that the company has reduced its workforce by 25 per cent over the past three to four years from 200 to 150, cutting staff costs from €18-€17 million to €13-€12 million.
Shannon Development operated a loss of €1.6 million at the end of 2004 and Mr Thompstone stated that the company operated a deficit last year, with the final accounts not yet complete.
