Údarás na Gaeltachta has said Government restrictions have prevented it from providing employment for over 200 people.

It says the restrictions prevent it from signing-off on job creation projects.

The Gaeltacht agency has been prevented from spending money on new projects following a directive issued by the Department of Finance earlier this year.

The directive was sent to all State agencies and restricted new capital expenditure.

However, the restrictions are not in place for the IDA and were lifted four weeks ago from Enterprise Ireland.

Údarás na Gaeltachta said it has a number of potential projects in the pipeline and Chief Executive Pádraig Ó hAoláin said the jobs would be created over the next two to three years.

Speaking in the Dáil yesterday, Tánaiste Mary Coughlan declined to confirm when, or if, the restrictions on Údarás na Gaeltachta's spending would be lifted.