A total of 734 jobs were lost in Shannon Development-backed companies last year, almost double the losses for 2001, according to the State company's annual report, which was published yesterday.

The report showed that at the end of 2002, multinational and domestic Shannon Development-supported companies employed 20,226 people. This was 734 fewer than the 20,960 employed a year earlier. The 2001 net job loss figure was 391.

Businesses supported by the regional development company created 1,393 jobs. This lagged well behind the number of losses, which came to 2,172. The biggest jobs blow was US-based telecommunications company, Tellabs, which closed with the loss of 444 jobs during the year.

Employment in the Shannon free zone was 7,373. This was a fall of 510, or more than 6 per cent, on its 2001 level of 7,883.

A spokesman blamed the tough business environment for the job losses. "They are facing a lot of difficulties in the global market, and they have to deal with domestic pressures like inflation and high insurance costs as well," he said.

In 2002, Shannon Development paid €7.8 million in grants to multinational industries in the Shannon free zone and to Irish companies in an area comprising Limerick city and county, Clare, north Tipperary, south west Offaly and north Kerry.

It also invested a total of €1.6 million in 12 Irish companies during the year.

Shannon Development had a total income of €41.9 million and an operating shortfall of €11.5 million. Its losses before tax were €3.15 million.