GOOD NEWS FIRMS BACKED BY IDA CREATE 2,300 NEW JOBS; BAD NEWS Another 6,000 positions have been axed.

Byline: PAT FLANAGAN 

MORE than 2,300 jobs were created in IDA-backed firms last year but another 6,000 jobs had been lost, it was revealed yesterday.

And most of these were down to Dell's decision to pull out of Limerick and SR Technics at Dublin Airport.

IDA chief Barry O'Leary welcomed the recent reduction in labour costs and warned workers will have to take a 15% pay cut if the country is to be competitive.

He said: "A strong focus on further improvements in overall competitiveness will position Ireland to take advantage of the eventual global economic recovery."

The state development agency's annual report revealed 10,000 jobs were lost while 8,837 new posts were created last year as the number of foreign direct investments rose by 14% to EUR2billion.

IDA Ireland said there were 130 new ventures in the country with networking site Facebook, computer giant IBM and pharmaceutical firm Boston Scientific among the big names to expand.

Mr O'Leary added: "Despite the current economic situation, Ireland is more than capable of securing high-value, knowledge-led investments.

"Competitiveness is a key factor in attracting FDI. Positive improve-mentin cost competitiveness have taken place in many areas including land, building, rent, energy and labour costs."

The report also found 55 research and development projects were secured worth EUR420million. The business is worth EUR16billion to the economy.

Tanaiste Mary Coughlan said the IDA had exceeded its targets for last year.

She added: "The level and calibre of investments demonstrates clearly Ireland retains its reputation as a leading location for FDI.

"And this confidence in Ireland by foreign investors has continued through 2009 with a good flow of investments to date and a positive outlook for further investments in the coming months."

Some of the key global business creation in Ireland included Coca Cola's EUR220million investment at a manufacturing facility in Wexford, 250 jobs at Facebook's European HQ in Dublin, Boston Scientific's EUR91million in Galway creating 45 jobs and orthopaedic firm Zimmer's EUR50million in Shannon creating work for 250.

But Fine Gael's spokesman Damien English blamed the Government for the loss of jobs.

He said: "Fianna Fail has failed to tackle competitiveness and the enormous cost of doing business in Ireland, to the extent Barry O'Leary has now warned Ireland has priced itself out of certain markets."