Further Memorandum from Industrial Development
Board for Northern Ireland
INQUIRY INTO
INWARD INVESTMENT
Further to my letter of 29 October I attach
as Annexes A and B the outstanding responses to the information
requested by the Committee at the oral hearing on 16 June.
Annex A
NORTHERN IRELAND AFFAIRS COMMITTEE
QUESTION 34 OF
16 JUNE ORAL
EVIDENCE SESSION
(MR DONALDSON)
Information Sought
What has been the number of projects over say
the last 10 years that have either exceeded, met or failed to
meet their targets for permanent jobs? What percentage of forecast
jobs have been created and still exist five years later?
IDB RESPONSE
We carry out ongoing analysis of job creations
flowing from "pure" job promotion offers i.e. excluded
from the exercise are any offers which have a combination of promoted
and safeguarded jobs.
Two hundred and forty-four inward investment
"pure" job promotion projects were assisted by IDB over
the period April 1983 to March 1994. One hundred and twenty (49
per cent) have met or exceeded their initial job targets.
Ninety-six of the 244 projects were greenfield
investments and the remaining 148 were expansions by externally
owned companies.
The number of jobs anticipated from the 244
projects was 21,976. Forty-six per cent (10,145 jobs) were in
existence five years after the date of the letter of offer. The
highest employment levels in those projects was 17,641 jobs (80
per cent of anticipated figure) and these were mainly achieved
after that initial five year period.
Looking at data over a longer period of time,
the average conversion rate from job promotions to creations is
50 per cent for greenfield projects and 75 per cent for expansions
with an overall rate of 70 per cent.
Longer term job duration measurement shows that
on average three-quarters of the jobs created are still in existence
after 10 years.
Annex B
QUESTION 46 OF
16 JUNE ORAL
EVIDENCE SESSION
(MR ROBINSON)
Information Sought
Historical analysis of the jobs created by externally
owned companies compared to locally owned companies.
IDB RESPONSE
Annex A above gives information relating to
the jobs created in inward investment.
Three hundred and eighteen locally-owned "pure"
job promotion projects assisted over the same period (i.e. 1983-84
to 1993-94) anticipated 14,513 jobs of which 75 per cent (10,914)
were in existence 5 years after the date of the letter of offer.
Mr Robinson also asked about the value for money
aspect of our support to companies. One measure is cost per job
promoted/safeguarded and I have set out below data for the different
categories of project assisted over the last four years. This
latter data is about to be published in our forthcoming 1998-99
Annual Report.
| IDB Cost Per Job (£)
(i.e.amount offered dividend by number of jobs promoted/safeguarded |
| 95-96 | 96-97 | 97-98 | 98-99 |
| Inward Investment |
| New | 17,180 | 25,277 | 6,997 | 5,774 |
| Expansions and Competitiveness | 23,619 | 13,118 | 15,830 | 7,139 |
| Locally Owned Companies |
| Expansions and Reinvestments | 11,883 | 13,742 | 18,558 | 16,798 |
| Competitiveness | 4,735 | 7,137 | 3,668 | 7,407 |
| TOTAL | 18,500 | 13,642 | 13,607 | 7,890 |
5 November 1999
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