IDA spends €3.8m to generate 544 jobs for the immigrates of Ireland.
Poor response to job creation – only 544 jobs created after spending €3.8m
When the government launched an initiative to take assistance from Irish people settled abroad to create 5,000 jobs in the country only 544 new positions were generated.
IDA Ireland made a statement of paying Connect Ireland, to operate the job scheme “Succeed in Ireland”, a sum above €3.8 million.
Martin Shanahan, Chief Executive IDA, told Public Accounts Committee the Dáil that the contract to coordinate with Connect Ireland was terminated in March 2017 and there would no repetition of it. Both IDA and Connect Ireland became involved in a legal disagreement in 2016 about the scheme.
There was a claim by Connect Ireland that around 1,000 fresh jobs were created and additional 1,300 were being processed.
It criticized the IDA of blocking potential job creators wrongly, and not paying cash reward in the scheme.
He went on to say to the PAC that only 544 jobs were actually created even though the target agreed was 5,000. Most of the new positions were based in Dublin.
He also cast off any implication that IDA had treated Connect Ireland in the wrong manner.
He added that the IDA did not feel any threat because of the success of Connect Ireland. Mr. Shanahan said the IDA had attached importance to ensure that the program worked well. The initiative of Succeed in Ireland had targeted global companies and businessmen, for employment opportunities in the country, who could not be contacted, by the state agencies.
It was designed to encourage the public and the Diaspora, to introduce foreign investors to Ireland. They were awarded a cash sum for this act, which consisted of a reward of €1,500 for one job created and an amount of €150,000 when an establishment operated in the Republic.
Mr. Shanahan mentioned that €2.27 million was paid to Connect Ireland as per the terms of the contract. Additionally, a termination fee of €1.54 million linked to 398 jobs was also paid.
He added that a part of the money would be recovered if jobs were not created subsequently. IDA Ireland had behaved in a professional manner respecting the letter and the spirit of the contract.
Mr. Shanahan said that this initiative would neither be extended nor repeated. He concluded by saying that the model was not ideal.