Dáil debates

Wednesday, 25 March 2009

9:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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I wish to share time with Deputy Shortall.

The Minister for Transport must come clean on when his Department was informed that SR Technics planned to pull out of its Dublin Airport operation. On the basis of meetings held between the Oireachtas transport committee, the SR Technics workforce and local management and the Dublin Airport Authority, DAA, in recent days, it is clear the Department of Transport was aware that SR Technics was leaving Dublin from early November 2008.

At that time the company's corporate management approached the DAA to negotiate the sale back to the authority of the leases on the six hangars and 34 acres of the SRT facility at Dublin Airport. The lease on hangars 1 to 5 was to run to 2059 and the lease on the large hangar 6 was to conclude in 2060. The authority refused to disclose to the Oireachtas transport committee the value of buying back the leases, citing a confidentiality contract with the company. DAA management, however, rightly decided to protect the ownership of key national assets and carried out its duty to inform the Department of the proposed return of the leases and the departure of SRT with the loss of almost 1,200 jobs.

Earlier, on the Order of Business, I asked the Taoiseach when the Minister for Transport reported to him and the Cabinet that SR Technics was leaving. I also asked him what measures were taken almost five months ago to protect the 1,200 jobs and make arrangements, if necessary, to request the IDA to prepare to replace the company with a successor aviation engineering company. The Taoiseach failed to respond but it is now obvious the Minister for Transport has serious questions to answer on this matter. The DAA also told me and my colleague Senator Brendan Ryan, and other colleagues from Fianna Fáil and Fine Gael, last week that the State enterprise would not be found wanting in "supporting any measures to continue the SRT operation by any interested party". While this view is welcome the Minister should comment on some issues connected with the leases. Is it the case, for example, that Ryanair and Aer Lingus have different types of liens or restrictions on at least two of the hangars concerned, given their line maintenance operations in the airport? The Departments of Transport and Enterprise, Trade and Employment could and should have addressed the appalling redundancy and pension terms now facing SR Technics workers much earlier, especially if the Minister for Transport knew of SR Technics' intentions more than five months ago. Why did the Minister for Transport and the Government not ensure that all funding released from the DAA, confidentiality clause or not, be included in redundancies and pension funds?

The ball is in the court of the Minister for Enterprise, Trade and Employment, the Taoiseach, and the Minister for Transport. These Ministers must come into the Dáil and explain where exactly is the IDA's evaluation of the expressions of interest and what stage they have reached in moves to protect the entitlements of the SR Technics workforce, their jobs, and if necessary, to install a successor business.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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I appreciate Deputy Broughan sharing time with me. It is regrettable that the Minister for Transport chose to slip out of this Chamber after the vote a few minutes ago and was not prepared to stay and respond to this debate. I welcome the presence of the Minister of State at the Department of Transport, Deputy Noel Ahern, tonight.

The 1,100 workers in SR Technics were devastated when they were told last month that they were to lose their livelihoods. The very least they deserve from the Minister for Transport is respect, basic information and answers to their questions. Workers have posed four straight questions to the Minister and they deserve straight answers:

When were you, as Minister for Transport, made aware of the fact that the D.A.A. management were in negotiation with SR Technics Group Management for the return of the leases on the Hangars at Dublin Airport?

Is the D.A.A. complicit in the closure of SR Technics to allow for the future development of Dublin Airport?

As 25% stakeholder in Aer Lingus are you aware of any part Senior Management of that company played in assisting this closure?

How is the D.A.A. paying Mubadala Development Company (SR Technics AG) for the leases of the hangars at Dublin Airport?

Workers are entitled to know the answers to those questions and what, if anything, the Government is prepared to do to save this company. The Minister for Finance, and three Ministers of State, Deputies Noel Ahern, Pat Carey and Trevor Sargent all represent the north side of Dublin yet nothing is being done to save this viable company. Some 1,100 jobs are going down the Swanee and it seems no action is being taken to save them.

What actions will the Ministers for Transport and Enterprise, Trade and Employment take to ensure that the SR Technics workers get a fair and just severance package? What will they do about the shortfall in the SR Technics pension fund? In addition, 300 SR Technics staff are part of the Irish Airlines superannuation fund. As a stakeholder in Aer Lingus and owner of the DAA the Government is a significant contributor to this scheme which is also underfunded. What will the Minister do to ensure that SR Technics honours its responsibilities to both pension funds? How can the Minister for Transport and his Cabinet colleagues stand idly by while the mega-rich Mubadala Investment Company abdicates its responsibility to its Irish workforce? It is the job of Government to protect Irish jobs and defend the rights of Irish workers. The Minister has done neither. It is time for action. We cannot afford the cost to the economy, and particularly to the north side of Dublin, of doing nothing. SR Technics workers deserve much better than this.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The Deputies asked a lot of extra questions to which I might not have the answers. In mid-January the DAA informed the Department that as part of preparations for global restructuring SR Technics had agreed to sell certain hangars back to the DAA——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Minister of State is misleading this House.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Can the Deputy let me give my answer?

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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The Deputy must listen to the Minister of State. There are ways to deal with that later on. Will the Minister of State continue please?

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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I had better start again.

In mid-January the DAA informed the Department that as part of preparations for global restructuring SR Technics had agreed to sell certain hangars back to the DAA and had signed a letter of intent to that effect. The Minister was informed of these developments at the time.

The Department and the Minister had been made aware by the DAA in mid-November of contacts between SR Technics and the DAA about possible restructuring of SR Technics and as a consequence the possible return of hangar leases. The DAA 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.

Subsequently, in late December, the DAA advised the Department 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.

Once it became clear in November 2007 that the Aer Lingus maintenance contracts were being put out to tender, the Department of Transport alerted the Department of Enterprise, Trade and Employment to the potential implications for employment in the event that SR Technics was not successful in the tender competition.

Since then there has been ongoing contact with the Department of Enterprise, Trade and Employment, including contact between Ministers, in the context of the threat to jobs in the company. The Department and the DAA——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Minister of State is washing his hands of it.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The Deputy should hold on a second. I listened to him.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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There are 1,200 people involved.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The Department and the DAA have at all times been sensitive to the employment implications of the SR Technics closure.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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What does that mean? This is a viable company.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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I am trying to answer some of the Deputy's questions.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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The Deputies must allow the Minister of State to continue.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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I can also confirm that the IDA and Enterprise Ireland——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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This is an incredible speech. This is misleading the House.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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I have to ask the Deputy to resume his seat. That can be dealt with in another way, not by confronting the Minister of State at this point.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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He is not giving us the facts.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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The Deputy must allow the Minister of State continue.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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I am giving the exact facts, if the Deputies would only have the patience to listen.

Photo of Kathleen LynchKathleen Lynch (Cork North Central, Labour)
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The Minister of State should just continue with his speech.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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I can also confirm that the IDA and Enterprise Ireland are working intensively to ensure that any viable proposals for aviation-related projects, to retain as many jobs as possible in aircraft maintenance, are given serious consideration.

The DAA will also give serious consideration to any commercial proposal put to it as regards access to hangars for aircraft maintenance operations. The Minister for Transport has instructed the Department to maintain contact with the Department of Enterprise Trade and Employment, the IDA and Enterprise Ireland to ensure that any viable proposals can be facilitated.

We are all from the north side and we know the situation. SR Technics has been under pressure——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Minister of State knew that before we did.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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The Government could have done something about it.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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It has been under pressure since 2007. We all know that. Arguing about who knew what when and what was said when over recent months is not where it is at. It is necessary to work and establish whether viable proposals come forward with which we can work and help to try to save as many jobs as possible.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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The Government had the time and did nothing about it.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Government did nothing.

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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That is where it is at. The Deputies are allowing themselves to go down a cul-de-sac. Let us focus and concentrate on what it is all about.

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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What, if anything, did the Government do to save the company?

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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Right now that involves trying to work with any outfit that comes forward to see how many of the jobs can be saved.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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This is grotesque incompetence.