Pat Carey (Dublin North West, Fianna Fail)

I have heard Deputy Ring make these assertions before. During the 13 year period from 1997, there were net increases in jobs in nine of these years and decreases in four years. During that time, Údarás na Gaeltachta has replaced jobs in traditional manufacturing sectors such as textiles, knitwear and engineering sub-supply with jobs in the modern economy - media, information technology, natural resource-based companies such as aquaculture and internationally traded and tradeable services - in the face of stiff competition from more advantaged areas in Ireland and competing areas in Britain.

The vast bulk of job losses occurred during the 2001 to 2003 period, when many of the international manufacturing companies, based predominantly in Gaoth Dobhair, scaled down their operations or transferred to low cost economies. Údarás na Gaeltachta responded by attracting and supporting new companies such as Arán Pita Teo. of Largo Foods, Euroflex, RA Pacáistí Teo. and the VHI, which continue to expand and increase their workforces.

The other major decrease in employment occurred in 2009, commensurate with the overall decrease in employment nationwide resulting from the downturn in the economy. The job performance in the environment in which Údarás na Gaeltachta operates has been more than satisfactory in my view. The average lifespan of a job in an údarás-supported project is approximately eight years. Typically, Exchequer investment is repaid on average in approximately three years. An average of 12% of jobs in Údarás na Gaeltachta client companies are lost as a normal part of the business cycle as sectoral trends change, enterprises restructure and companies streamline to improve their competitiveness. It is important to point out that the employment base in the Gaeltacht is providing good value for money for the taxpayer. Results from the annual business survey carried out by Forfás on the IDA, Enterprise Ireland, Shannon Development and Údarás na Gaeltachta highlight the significant impact that Údarás has had on the Gaeltacht and the national economy. The 2008 results for Údarás, which are the most recent, showed annual sales of €834 million, of which €400 million or 47.6% was in exports, which was an increase of 9.4% on the previous year. The annual total gross pay was approximately €266 million of which €220 million was net pay or direct local economic impact.

Based on these figures, the annual total tax PRSI paid to Revenue annually by Údarás client companies is €75 million, which is the most accurate reflection of value for money to the taxpayer. A total of 43.5% of Gaeltacht companies are engaged in research and development activities, with a spend of approximately €17 million. By any measure, these figures relating to economic impact demonstrate the exponential return the State has received from investment by Údarás na Gaeltachta in job creation in the Gaeltacht over the past number of years.

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