Noel Dempsey (Meath West, Fianna Fail)

In November 2007, which was more than 16 months ago, I became aware that Aer Lingus maintenance contracts at SR Technics were being put out to tender. It was immediately clear that, were SR Technics not to win back these important contracts from Aer Lingus, it would have major implications for employment at the Dublin plant.

Officials in my Department immediately alerted the Department of Enterprise, Trade and Employment to the potential implications of SR Technics not being successful in the tender competition. My Department has maintained contact with that Department since then.

With regard to the Deputy's specific question on SR Technics, in mid-January 2009 my Department was informed by the Dublin Airport Authority that SR Technics had agreed to return the leases on certain hangars to the authority and had signed a letter of intent to that effect. It was then clear to the authority that SR Technics' planned re-structuring would involve closing the Dublin operation, subject to the resolution of arrangements for the transfer of line maintenance for Aer Lingus. I was informed of these developments at the time and officials in my Department immediately provided their counterparts in the Department of Enterprise, Trade and Employment with this information.

In mid-November 2008, the Department had been made aware by the Dublin Airport Authority of confidential contacts between SR Technics and the authority about possible restructuring of SR Technics and, as a consequence, the possible return of hangar leases. The authority advised that, as it had signed a strict confidentiality agreement with SR Technics, it was therefore precluded from providing the Department with details of the discussions at that stage. However, it indicated that the employment implications of any restructuring were not clear at that time.

Subsequently, in late December, the Department was advised by the Dublin Airport Authority that these discussions were progressing but were still subject to a strict confidentiality agreement and that any restructuring of SR Technics could have a significant impact on employment in the Dublin operation.

I understand that, in January, the IDA and SR Technics were in direct talks regarding the provision of funding for a training and up-skilling programme in SR Technics. The IDA was involved in putting together a package for a submission to the company's headquarters in Zurich. This is only the latest contact that the IDA has had with the company. It provided training grants in 2006 for the up-skilling of workers and has had ongoing contact with the company since then.

Additional information not given on the floor of the House

While the decision to close the Dublin facility was conveyed to the IDA by SR Technics at a meeting with the Tánaiste on 11 February, the IDA was aware for some months before that date, both from information that my Department passed to the Department of Enterprise, Trade and Employment and from its own sources, that the company was engaged in a major review of group operations that would have consequences for the Dublin facility and could result in its closure. The IDA had intensified its engagement with the company with a view to assisting the Irish subsidiary to achieve the optimal outcome in the circumstances.

As already indicated to the House, both the Department and the Dublin Airport Authority have at all times been sensitive to the employment implications of SR Technics' closure, which was announced by the company on 12 February.

I can confirm that the IDA and Enterprise Ireland are continuing to work intensively to ensure any viable proposals for aviation-related projects to retain as many jobs as possible in aircraft maintenance are given serious consideration. The Dublin Airport Authority will also give serious consideration to any commercial proposal put to it as regards access to hangars for aircraft maintenance operations.

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