Damien English (Meath West, Fine Gael)
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Question 35: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the actions she is taking to ensure the survival of an avionics and aircraft maintenance industry at Dublin Airport; the actions she is taking to ensure that employees of a company (details supplied) are not short changed in terms of pensions or redundancy payments; and if she will make a statement on the matter. [13513/09]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 46: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the correspondence she has had with a company (details supplied); and if she will make a statement on the matter. [13398/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 35 and 46 together.

The Government is anxious that as many jobs as possible be secured at Dublin Airport. We would like to see the SR Technics Group do what it can to facilitate this, such as helping to promote the capabilities and skills available at the Dublin facility, agreeing to an orderly wind down of the facility to give IDA Ireland an opportunity to promote the location to interested parties and maintaining assets and equipment at the site for at least six months. I have conveyed these points, and the widespread concern that every effort be made to maintain the maximum number of jobs at the facility at Dublin Airport, to SR Technics at group level.

IDA Ireland and Enterprise Ireland, EI, have formed a project team to promote the operation through the IDA overseas network of offices and to meet with and assess expressions of interest. A number of parties have expressed interest in acquiring at least elements of the business and both IDA Ireland and EI are exploring options with them. IDA Ireland and EI are continuing to examine proposals. Actual involvement by both in providing financial or other supports will be dependent on a company or companies submitting commercially viable proposals for consideration and seeking approval for State support in the normal way.

Regulatory responsibility for the oversight of pensions funding is the responsibility of the Pensions Board under the auspices of the Department of Social and Family Affairs. The Government is conscious of the pressures on scheme trustees and employers sponsoring pension schemes arising from the significant losses incurred by pension funds in the past year. While measures were announced last December to ease the funding pressures on pension schemes, the Government is considering a comprehensive framework for future pensions to set out a new model that will aim to secure the future of social welfare, private, occupational and public service pensions.

The services of the State's industrial relations machinery have been made available to assist in resolving the issues in dispute. All-day conciliation talks were held in the Labour Relations Commission on Tuesday, 24 March. However, a resolution to the issues in dispute could not be agreed and the issues involved were referred to the Labour Court. A Labour Court hearing was held on the morning of Monday, 30 March, and the court issued its recommendation yesterday. I understand this covers increased ex gratia redundancy payments and full funding of the pension schemes by the company. I hope the recommendation will be accepted by all parties to the dispute.

It should be recalled that the State provides free of charge the industrial relations dispute settlement machinery to assist this process which, in line with the general principles of industrial relations in Ireland, is voluntary in nature. Responsibility for the resolution of trade disputes is a matter for the parties involved.

The State agencies will continue to engage with all groups, indigenous and overseas, interested in building commercially viable and sustainable operations to secure as many of the jobs as possible at Dublin Airport.

James Reilly (Dublin North, Fine Gael)
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I thank my colleagues for allowing me to contribute on this matter of importance to Dublin North and the whole of the region. A rebate of €15 million is due to the company. It was due some €20 million from the Dublin Airport Authority, DAA, for the return of the hangar and the lease on same. The Tánaiste should correct me if my figures are wrong, but they were given to me by a trade union official not one hour ago.

IDA Ireland may be requested to provide €25 million for the most interested party that wants to retain SR Technics as a going concern. If the company goes to the wall in the first year, it will cost the taxpayer €50 million. We can exercise a certain amount of muscle with the company. Did someone say something?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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Not on this side of the House.

James Reilly (Dublin North, Fine Gael)
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I apologise, as I believed I heard someone talking.

John O'Donoghue (Kerry South, Ceann Comhairle)
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A foreign channel.

James Reilly (Dublin North, Fine Gael)
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An bhfuil sé as Béarla nó Gaeilge? On Friday, 600 people will be let go; which 600 is not known. One hour ago, I was told via telephone that the SR Technics Group has refused to abide by the Labour Court recommendation and that the workers are meeting among Dublin Airport's hangars to discuss their future as we sit in the Chamber. In this light, what assistance can the Government provide them? Without breaching EU law, will it undertake to make funds available to IDA Ireland in order that it can sustain a takeover of the company and retain the jobs?

On Friday, 600 people will lose their jobs. If they are dispersed, knowledge and expertise will be lost to us forever, which we cannot afford. Recently, the Government's thrust has been in respect of creating and retaining jobs. This situation is an acid test and one I hope the Government will pass, given how much hangs on it.

Mary Coughlan (Donegal South West, Fianna Fail)
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Saying a number of things would be appropriate. First, several people have tabled management buy-out proposals, which are being evaluated. As I indicated to the unions today, it is important that they evaluate the proposal under discussion in the House and take on board its implications for workers. I am not referring to work practices, but to the use of redundancy funds. Second, if a viable commercial proposal is tabled to IDA Ireland or EI, we will support it. There is no two ways about that. The viability of any proposal must be examined in the normal context of EI or IDA Ireland criteria.

As I indicated, it is important that we consider the proposal's elements realistically. Unfortunately, the proposal is more complex and complicated than normally would be the case. However, we are working through it and we will do everything we can to assure people that everything possible will be done to sustain employment at Dublin Airport.

It is equally important to highlight that the companies outside of the State that have expressed an interest have not done so within the same framework as the expressions under examination. I assure people that, if a viable proposal is tabled to the Government, we will support it. It must be a business proposition and people must have the prerequisite funding to make the company a viable operation.

I have met many Opposition and Government Members regarding this issue. A number of people have been forthcoming in supporting different projects, which are being examined. I again met representatives of the IDA on this matter this afternoon. There also have been discussions today with the unions on this matter. When they met me recently, the unions were anxious that we would do all we could to sustain employment in that area and it is my clear intention to so do to the best of our ability.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Has consideration been given to nationalising the facility, at least on a temporary basis, to allow the continuation of work while the proposals the Tánaiste has just mentioned are being discussed? If the service or contracts are broken at this point, it will be extremely difficult for the plant to get back on its feet again. As a temporary measure, the State could step in for at least the three or four months in which the aforementioned proposals were discussed or their viability investigated.

Mary Coughlan (Donegal South West, Fianna Fail)
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The answer to the Deputy's question is a categoric "No". The Government cannot involve itself in line or base maintenance.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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It did so in respect of the banks.

Mary Coughlan (Donegal South West, Fianna Fail)
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It is not the Government's intention to take over SR Technics for a number of months in order that a viable proposition could be put forward. In the normal course of meetings with me, the Minister for Transport, Enterprise Ireland, the IDA and all the State agencies, there is a clear indication, when working with the unions or otherwise or with whoever comes forward, to do as much as possible to sustain jobs, employment and skills at Dublin Airport.

Leo Varadkar (Dublin West, Fine Gael)
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The Tánaiste stated she was highly committed to sustaining jobs in that part of the world.

Mary Coughlan (Donegal South West, Fianna Fail)
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At Dublin Airport.

Leo Varadkar (Dublin West, Fine Gael)
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I remind her that Members are discussing north County Dublin, which is a few miles away and not Argentina or India. It is located in Deputy Reilly's constituency at present and will be in mine quite shortly.

Billy Kelleher (Cork North Central, Fianna Fail)
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Will the Deputies still be friends?

Leo Varadkar (Dublin West, Fine Gael)
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Members should be aware that Irish jobs, located just down the road, are under discussion. What is happening at SR Technics is a scandal. While many jobs have been lost in the economy, many of the major job losses in large industries in Dublin and elsewhere have occurred in industries that were on the way out anyway as they may not have been profitable or their jobs models were of a different age. SR Technics is different because it still is viable. It still is a potentially profitable company, which should be and must be saved.

The Tánaiste has stated a few times that if a viable proposal comes forward, it will meet with the full support of the State. I took a call earlier today from a representative of the trade unions in SR Technics, in which I was informed that a viable commercial proposal for the takeover of the entire business has been made. Is this the case and if so, why will the Tánaiste not support it?

Mary Coughlan (Donegal South West, Fianna Fail)
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I must respect the confidentiality of those who have approached the IDA and Enterprise Ireland.

Leo Varadkar (Dublin West, Fine Gael)
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The Tánaiste said "if", which means such a proposal has not been made.

Mary Coughlan (Donegal South West, Fianna Fail)
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At present, three proposals are being evaluated by the IDA. A meeting took place in confidence on Friday with these companies. They were asked to revert to the IDA on Monday and there will be further discussions with them. Therefore, discussions are ongoing. Some slight confusion has arisen about a number of these proposals but I believe that one in particular, which is perceived as a management buy-out in consultation with the unions, is the proposal that everyone is discussing. While that project is being evaluated at present, the IDA has indicated that the basis on which it has been put forward warrants full examination, to ascertain what exactly is the proposal in the first place. It will be at that point that people will be able make up their minds. However, a considerable number of other entities have expressed interest in parts of the company.

It is important to note that I must uphold the confidentiality of those who have expressed interest. Second, if the proposals put forward to the IDA are commercially viable and pass the criteria whereby they can be recommended to the respective boards, the Government of course will support them. The Government will continue to work with everyone to ensure that this happens to the best of everyone's ability. However, it will be important to achieve a balance between the workers, their rights and access to the redundancies to which they are entitled, and the creation of a new viable company.

I met representatives of this company in Zurich some time ago and have followed on with a number of meetings. Together with my officials and the IDA, I have been working with this company for a considerable number of months, on foot of the loss of the contracts with Aer Lingus, because it had a need that we were trying to meet. Unfortunately, the framework and plan that went to the company's head office in Zurich was not accepted by it on the basis that globally, SR Technics was in financial difficulties and had made the decision to get out of baseline maintenance and to move on to the more high technology side. This is the framework in which we are working at present.

Willie Penrose (Longford-Westmeath, Labour)
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As an island nation, the implications in respect of this company are national and are not limited to north Dublin. A cohort of people are highly skilled in the aeronautical and aviation industries. Does my earlier suggestion make good sense? Rather than paying 900 or 1,000 people, which will cost the guts of €20 million in social welfare payments and forgone income tax, would it not be as well to consider the proposals? I appreciate they must be evaluated in respect of viability. Workers also should get their due entitlement but that is a matter to be worked through with workers and their trade unions. They could ascertain whether another issue exists in respect of reinvestment. As this will cost €20 million in social welfare payments anyway, why not invest it to keep at work those who have the necessary skills and entrepreneurial spirit to ensure they survive?

Second, approximately 70 or 80 third and fourth year apprentices work there. Has a lesson been learned from developments at SR Technics to the effect that when a problem arises regarding job placement work, we now will ensure the institutes of technology are capable of bringing forward their third and fourth year theory components? One should ensure that apprentices do not lose out and such components should be brought forward to develop their educational acumen and skills. This should be done as I believe FÁS has done so.

Third, does Aer Lingus now regret its decision to withdraw the contract from SR Technics? Perhaps it does.

Mary Coughlan (Donegal South West, Fianna Fail)
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On the final question, I will leave it as stated. However, the decision had a direct implication on the viability of SR Technics.

Willie Penrose (Longford-Westmeath, Labour)
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My information is it may not be getting on as well at the place to which it went.

Mary Coughlan (Donegal South West, Fianna Fail)
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Moreover, the reason it still operates in Switzerland is because it is tied to SwissAir.

Second, on the question of the apprentices, the Deputy had a meeting with the Minister of State, Deputy Kelleher, and I and he is working with DCU on that issue on their behalf. It would be great, were another component company or an organisation similar to the ESB in a position to take on these people. However, we are working through this issue.

There is a simplistic view being expressed across the House that one takes the money people have as a personal entitlement and put it into the company, which then will keep going. That is not the position.

James Reilly (Dublin North, Fine Gael)
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No one suggested that.

Leo Varadkar (Dublin West, Fine Gael)
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They would have to agree to it.

Mary Coughlan (Donegal South West, Fianna Fail)
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The point is the IDA and Enterprise Ireland have the requisite resources to support an application being made to them. There is no problem in this regard. My agencies have the necessary resources and finance to support a viable strategic proposal. It is important to clarify again that there is no problem other than the viability of a business proposal must be such that it stands up. Were we to intervene on the basis of a motion, I would not want a situation to arise in which Deputies sought my resignation in six months' time, on the basis that I had made a bad business decision. I am not looking forward to such a debate and therefore——

Leo Varadkar (Dublin West, Fine Gael)
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It would be a good reason to resign

Damien English (Meath West, Fine Gael)
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The Tánaiste should be happy to get six months.

Leo Varadkar (Dublin West, Fine Gael)
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The Tánaiste is immune from accountability in that party.

Mary Coughlan (Donegal South West, Fianna Fail)
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No, I am not. However, it is important not to make a mistake when making such decisions on the basis of viability. The skills are there and the framework is in place.

James Reilly (Dublin North, Fine Gael)
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The biggest mistake would be not to move quickly and to lose these jobs.

Mary Coughlan (Donegal South West, Fianna Fail)
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It is our clear intention to do our utmost to support these people. It is important that the message is given.

Leo Varadkar (Dublin West, Fine Gael)
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If the jobs were in Donegal the Minister would move with greater speed.