Údarás na Gaeltachta has defended its financial support of companies based on the east side of Galway City and Claregalway.

It comes after the regional authority responsible for economic, social and cultural development of the Gaeltacht was criticised for supporting companies in predominantly English-speaking areas of Parkmore Business Estate and Claregalway.

Kevin O’Hara, a Sinn Féin representative in Conamara, said the State agency should not support companies in Claregalway or Parkmore on the city’s east side. He suggested Enterprise Ireland or the IDA should support those companies rather than An tÚdarás, even though they were technically situated within the Gaeltacht.

Speaking on Adhmaidin on RTÉ Raidió na Gaeltacht, he questioned what benefit the Conamara Gaeltacht reaped by Údarás na Gaeltachta supporting enterprises in Parkmore or Claregalway.

Instead, Mr O’Hara said Údarás should focus on supporting jobs from Knocknacarra westwards, in Gaeltacht Conamara, and in particular in Casla, where it was badly needed.

He said it did not make sense for it to be spending money on client companies in Parkmore or Claregalway, and instead it should be focused on where it would be more valuable to the language and Gaeltacht areas, in South Conamara.

The controversy arose after Údarás announced its end-of-year statement for 2022, which highlighted how its client companies in the Galway Gaeltacht had shed jobs last year.

There were a total of 3,222 jobs in Údarás client companies in Galway at the end of last year.

Some 278 new jobs were created in these companies, but 331 jobs were lost, meaning a net loss of 53 jobs.

Údarás said the previous year, 2021, was “exceptional” for job creation.

In a statement to the Tribune, Údarás said it “does not currently support any companies in the Parkmore Business Estate”.

“We offer qualifying businesses and companies from various sectors a range of incentives and supports to start up, develop, expand or locate throughout the Gaeltacht regions, as defined by statute,” it added.

The fall in Galway Gaeltacht employment, it said, was “associated with the closure of some large companies on the eastern edge of the Gaeltacht” – which is understood to be in Parkmore.

“Most of the new jobs were created in companies operating in the medical devices, science and engineering sectors, including Aran Biomedical and Micron Clean in An Spidéal, and ÉireComposites in Indreabhán.

“In addition, there was an increase in employment in niche manufacturing companies as well as in the community services, education and language sectors,” the review said.

In the coming year, job creation will mainly be in the food and drink, biotechnology, audiovisual, aquaculture and services sectors, it said.

Údarás said 2022 was challenging for its client companies due to rising costs, particularly energy, and an uncertain international trading environment due to geopolitical unrest.

“It is clear that some of these challenges will still be with us in 2023. But Gaeltacht companies have shown stability and resilience, driven by constant innovation,” it added.

Language plans were being implemented in eight of the ten Language Planning Areas identified for the Galway Gaeltacht at the end of 2022, with total funding of €1.3m per year.

Implementation of the language plans will begin in the other two Language Planning Areas, An tEachréidh (Claregalway) and Bearna and Cnoc na Cathrach in early 2023.