3.3 million investment = 24 new jobs

Tawny

Can someone explain this to me?

I know nothing about engineering, but does an investment of £3.3 million that creates 24 new jobs make sense?

That works out at £137,500 per new employee...

http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/7724679.stm

biko

The money probably goes to more than salaries?

"WIS plans an aggressive marketing campaign in developing markets, and joint managing director John Toner said the new jobs would be highly skilled and well-paid."

aidan_walsh

R&D is not cheap.

Ginny

Is it just going on jobs?

"The money will go towards upgrading the firm's scientific research and development capabilities, and Mrs Foster said this was proof of its "dedication to ongoing product and process improvement"."

Sure Oriflame are investing €2.4 mil here for 35 jobs.

Fratton Fred

Managing Director "Give me £3.3m and I'll create 24 new jobs"
Minister "why £3.3m?"
Managing Director "That's £1m for me, £1m for you and £1.3m to pay the feckers"
Minister "Cash or Cheque"

or, which is more likely

MD "Give me £3.3m to invest, or I'll close the plant and move it to Poland making all 150 people redundant".

Minister y-y-yes sir, how would you like it paid?

Tawny

Okay its probably not all going on jobs.

But, at the moment when businesses are shutting down left right and centre I wonder about the ethics of investing public money for such a small return.

And although this is not a debate about immigration, when I worked in the office for an R&D firm we recruited nearly all our engineers from overseas as couldnt get expertise in Ireland.

Also, Invest NI have a history of backing the losing horse tbh.

e.g http://news.bbc.co.uk/2/hi/uk_news/northern_ireland/3118966.stm
http://www.niassembly.gov.uk/enterprise/2007mandate/research/ini.htm

seamus

Well, aside from me, I can count the cost of my desk (an expensive office-type affaird, probably close to €1000), my chair is about €600 worth, my computer including the software probably costs around €3k, I imagine the electricity I use works out at around €50/month, the 20 or 30 phone calls I make during the day probably cost about €10/month.....
and so on.

These things have a way of racking up. Particularly for jobs where "materials" and labs are required, such as in engineering.

lostexpectation

i think the ida have taken some money back from companies that leave sooner then they promised.

biko

Seamus and his fancy chair la-di-da

seamus

My chair rocks. That is all.

brianthebard

Fratton Fred wrote: »

Managing Director "Give me £3.3m and I'll create 24 new jobs"
Minister "why £3.3m?"
Managing Director "That's £1m for me, £1m for you and £1.3m to pay the feckers"
Minister "Cash or Cheque"

or, which is more likely

MD "Give me £3.3m to invest, or I'll close the plant and move it to Poland making all 150 people redundant".

Minister y-y-yes sir, how would you like it paid?

MD *unbuckles belt and unzips fly* Bend over boy, we've got business to take care of.

Extended your post there for you.

SimpleSam06

Tawny wrote: »

Can someone explain this to me?

I know nothing about engineering, but does an investment of £3.3 million that creates 24 new jobs make sense?

That works out at £137,500 per new employee...

If half that budget isn't going on marketing, something's not being done right. Its damn hard for a new company to make an impact without spending major shekels. And if they don't make an impact, no jobs for anyone!

Time Magazine

http://www.irishtimes.com/newspaper/breaking/2008/1112/breaking15.html?via=mr

Aldi invest €350m to make 650 new jobs, most of them crappy jobs.

"Investment" should include the cost of land, the cost of construction, stock, etc. More things create value than labour.

javaboy

seamus wrote: »

My chair rocks. That is all.

That is all? My chair goes up and down and swivels AND it rocks. And it cost way less than €600. Neh neh na neh neh! :P

phantom_lord

Tawny wrote: »

But, at the moment when businesses are shutting down left right and centre I wonder about the ethics of investing public money for such a small return.

surely they're looking for roi in terms of money and not jobs, the jobs is just an added bonus.