This article is from page 10 of the 2006-01-10 edition of The Clare People. OCR mistakes are to be expected so download the original SWF or the rendered page 10 JPG
THE chief executive of Shannon Development said yesterday that “hundreds of jobs” are to be announced for the Shannon Free Zone over the next number of weeks.
Announcing that there is a “significant pipeline” of jobs for the Free Zone, Mr Kevin Thompstone said, “We have had a good year, particularly in relation to the Free Zone, in expanding existing projects and landing new players.”
He declined to state how many jobs have been approved, stating only that it involves hundreds. However, the company’s end-of-year statement, published yesterday, found that last year there was a net loss of 289 jobs in the Free Zone.
But overall results in the Shannon region in relation to Shannon Developmen-assisted companies shows a net gain of 50 jobs, giving a total of 19,818 in the region.
1,795 new jobs were created in Shannon Development-assisted companies in the region in 2004. In relation to the Free Zone, 739 jobs were lost, while 450 were created.
Under the company’s new 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 functions as they are being transferred to the IDA and Enterprise Ireland.
Shannon Development’s chairman, Liam McElligott, said there was an inordinate amount of pressure on the company due to the uncertainty over the company’s future. Asked about ongoing tensions 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.
“75 per cent of economic activity in this country happens in the greater Dublin area and Shannon Development now has the mandate to create a counterpoint to that with a written mandate, which we have never had before. We are very happy that our mandate dovetails with Government policy. There is a sense within the company that we’re moving on. Over the next five years, Shannon Development will invest €100 million in the Shannon Region and leverage an amount in excess of that.”
Asked will the Shannon Region lose out now that the company no longer has a role in promoting the Free Zone, Mr McElligott said, “It shouldn’t.”
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. However, the company’s accounts for 2004 show that 75 personnel were engaged in industrial development.
Mr Thompstone said that the company has already 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. On its tourism function, Mr Thompstone said that 625,000 attended visitor attractions and evening entertainments operated by Shannon Heritage which is level with the company’s 2004 performance.