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Public Funding - What A Gem!

 

With thousands of jobs across the country on the line, should we be glad at the recent announcement that even more call centre jobs are to be created. 

Gem call centres currently employs 1,000 people and has plans to create a further 900 across its three Northern Ireland sites by 2012. The new posts will include customer service agents, sales agents, technical support and managerial positions and according to the company will generate £14m annually in salaries. 

Given that the additional 900 jobs are to be created across a three year period, what does the £14 million salary claim mean in context. The expansion in services was reported by the BBC on the 25th February 2009, to be supported by £5.5 million of public money, however over the three year period the Belfast Telegraph report the total investment to be £19.5 million.

In short, approximately £21,666.67 for every person employed, but given that many call centre posts start at national minimum wage and given the claim by the company that once all staff are in place, which is espected to be 2012, that the investment will amount to £14 million in salaries, why is Invest NI paying over one full years staffing cost, in fact paying £5.5 million over a full years staffing costs.

What A TelePerformance

French-owned firm Teleperformance, which belongs to one of the world's largest networks of contact centres is too create 610 jobs at its Newry site in County Down. The announcement made by Enterprise Minister Arlene Foster and reported by the BBC on the 26th February 2009, means that total employment at the Newry site will rise to 1,060 by 2011, with positions ranging from customer service advisor to operations management. The Minister stated: "By the time all positions are filled, Teleperformance will have almost 2,000 people based at its Newry and Bangor sites...". 

 

But again the question has to be asked, how much did Teleperformance obtain from Invest NI when they first located in Northern Ireland and how much have they received to assist with their expansion. Initial reports stated that Invest Northern Ireland was to provide £3m to assist with this expansion, but we can report that prior to the current package which will provide Teleperformance with £3,050,000 - a staggering £5000 per head, that they received a total of  £6.238,404 with another £1,626,500 in Training & Development assistance (this latter figure is awaiting confirmation). 

You decide, at a time when financial assistance has been completely withdrawn for new start-up business in Northern Ireland whether it is acceptable that Invest NI are able to offer such vast assistance to foreign companies offering what many consider to be low grade services, such as call centre work and which is often at the low end of the pay scales.

Full Editorial

Following the restoration of the Northern Ireland Assembly the people of Northern Ireland where promised vast investment, in fact it was one of the main reasons Ian Paisley was not steeping down until May. After the trade fair in the US, £100 million of investment was promised and to-date, not one penny has been spent here.

This year we have witnessed yet again our politicians go abroad seeking investment and unless the funding they have obtained in hidden in the deepest corner of some press release, they came back with nothing more than a promise of approximately £20 million. Ironically, Invest NI gave a similar amount to a single company not long before the trade mission set off and viewed within this context, whilst welcomed, is insignificant in the bigger picture.

Thus far devolution has not benefited Northern Ireland, we have gained nothing but more of the old political nonsense. The politicians we trusted to place faith in our abilities and arm us with the tools to succeed have robbed us, removing the smallest of funding to new start-ups and making what funding their is too difficult to access.

There is a clear choice facing our politicians, either provide the funding to the people of Northern Ireland and arm us with the tools to become entrepreneurs or step aside, for if working in a call centre is not good enough for your child, it's not good enough for ours!

Last Updated: 5th February 2009

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