Richard Bruton (Dublin North Central, Fine Gael) | Oireachtas source

Prior to this very unfortunate closure decision, I had kept in close contact with this case. In fact, I met senior company executives several times, including just before the announcement. The position is that the company has had to undertake a global review of its operations in the light of shrinking revenues and declining market opportunities. This decision was taken by the parent company on strictly commercial grounds in the face of a declining business that had also caused the closure of some of its plants in Germany.

The plant to which the Deputy refers carried out skilled maintenance on the engine casings of jet engines, which requires a particularly skilled and high value level of expertise. This work is crucial for the ongoing safety and efficiency of aircraft engines. Lufthansa has several plants worldwide engaged in this aspect of engine maintenance. However, owing to changes in the industry worldwide, including modern engines requiring less maintenance, over-capacity in the industry, increased competition from Asia and contractual obligations imposed by both aircraft and engine manufacturers, the company is facing over-capacity which necessitates the closure of several of its operations worldwide, including the plant at Rathcoole.

The Government is committed to the retention and expansion of skilled manufacturing jobs in the economy. Our new manufacturing strategy document which I launched last year sets out an ambitious target of creating an additional 20,000 jobs in the sector by 2016. Key recommendations of the strategy have been incorporated into the Action Plan for Jobs and are being pursued by my Department and the enterprise development agencies. While employment in the overall sector has increased by almost 8,000 jobs in the past year alone, parts of the aircraft maintenance sub-sector are under severe pressure owing to the changing dynamics of that industry. Nevertheless, we have several vibrant companies involved in various aspects of aircraft maintenance, employing some 4,000 staff. The strategy for the new Shannon Airport operation envisages the development of a vibrant aerospace sector at that airport. Part of that strategy has identified maintenance, repair and overhaul activities as a potential sector for development. Lufthansa's two other maintenance operations at Shannon employ a total of 770 staff.

IDA Ireland, in conjunction with Enterprise Ireland, has been actively seeking to pursue new employment opportunities for workers being made redundant by Lufthansa in Rathcoole. The agencies have been targeting and engaging with existing and prospective clients, highlighting the skills and capabilities of the Irish-based employees as a key attractor. The agencies have had ongoing engagement with the relevant education and training bodies to evaluate potential training and upskilling supports for Lufthansa employees.

The question of settling the level of redundancy payments to the former employees was considered in the Labour Court recently. Payment of the recommended terms is now a matter for the company.

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