Fears allayed that it will be subsumed into Enterprise Ireland
SHANNON Development will not be subsumed into Enterprise Ireland, Dr Vincent Cunnane, chief executive, told a press conference in Limerick this week. “Bord Snip has been set up to cut exchequer expenses but Shannon Development is a self-financing organisation – we only get less than one million from the government
– we are a 30million euro organisation and if the Snip’s focus is on reducing exchequer funding, we should not be on their radar.
“We have dropped from 190 employees to 130 and have lost some of our mandate but our role is to deliver for the regional areas, while the national agencies deliver for the bigger urban areas. We will continue to be effective for the region and for its tourism, for the delivery of broadband, etc”.
Stressing that the company has a mandate, Dr Cunnane said:
“Our aim is to make this region the place to work in, live in and be happy in. Last year,k 576 new jobs were delivered, we lost 368 jobs , leaving 208 jobs. 32 tourism deals were achieved, which brought in a 43million spend. We will be expanding the region’s tourism motivation platform and also we will support Limerick in a more public way. We are working with the regeneration programme which is vital to the city.
“While the economy is a big challenge, Shannon Development can meet this head on,” he said.
Asked about the progress to-date of the Task Force set up, following the haemorrhage of jobs from Dell, he said that on July 2, Shannon Development presented their interim report to the Tanaiste, Mary Coughlan.
“I believe it will go before the government shortly and I also believe that it should be published – in the aftermath of Dell, this should be a priority”.
Asked about the company’s relationship with the Tanaiste and Minister for Enterprise, Trade and Employment, Mary Coughlan, the SFADCO chief replied:
“The Tanaiste is from Donegal and the Taoiseach from Offaly – these key decision makers are non- Dublin and are aware of how difficult it is to bring development to the regions. We are a very strong organisation and unique in how we operate and this will save SFADCO – we operate in different sectors to generate regional benefits that cannot be delivered under the traditional centralised, single sector approach to economic development”.
Asked why Limerick gained just over 100 new jobs last year, compared to higher gains in other areas of the region, Dr Cunnane said that all regions had been challenged.
“There was growth in jobs at Plassey Technological Park, despite loss of jobs at Thomsons, but yes, some of the jobs gained were generated by the IDA”.
Asked about the likelihood of a 15 per cent pay cut, he responded:
“If we can get productivity up, we can continue to pay good wages and perhaps increase wages but if not, then there will be cuts”.
This year the company celebrate its 50th anniversary and pledging to “position the region to become a leader in building the country’s “smart economy,” John Brassil, chairman of Shannon Development, told the gathering that staff and management are committed to integrated regional development as a driving force for growth”.
