Dáil debates
Thursday, 2 April 2009
Priority Questions
Job Protection.
3:00 pm
Fergus O'Dowd (Louth, Fine Gael)
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Question 1: To ask the Minister for Transport the contact he had with the Dublin Airport Authority regarding the future of a company (details supplied) at Dublin Airport; if there was information in his Department that the company was selling back leases on hangers at Dublin Airport; his views on whether an aircraft maintenance facility at Dublin Airport is critical for the future of the aviation industry here; the action he has taken to protect jobs at the company's facility at Dublin Airport; and if he will make a statement on the matter. [14019/09]
Noel Dempsey (Meath West, Fianna Fail)
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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.
Fergus O'Dowd (Louth, Fine Gael)
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I thank the Minister for his reply. It seems from what he is saying that, in 2007, it was known something was happening although its extent was not clear. Given that the industry is so important and employs more than 1,130 people, could more not have been done? Clearly, the Minister informed the Department at the time in question. However, is it a sufficient defence for the Dublin Airport Authority to state the discussions were secret and that it could not have told the Minister about them, even though it did? More could have been done by the Government, particularly by the employment creating Ministries, to save these jobs. What proposals, if any, has the Government to save them? Six hundred jobs are to go to the wall tomorrow.
Noel Dempsey (Meath West, Fianna Fail)
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No more could have been done. The IDA was in direct contact with the company. As late as January of this year, local management was talking directly to SR Technics about an additional up-skilling programme for workers to try to ensure the company would have a viable future. Local management did not seem to be aware at that stage of the overall plans for the parent company. The IDA, for which I am not here to answer, entered those discussions in good faith. In light of my having made my first contact in 2007, I just warned that if the Aer Lingus contract were lost, jobs could be at risk. There was engagement between the IDA and SR Technics subsequent to that. The IDA was hearing from local management that it wanted to restructure, up-skill the workforce and put the company on a viable footing. The IDA was operating on that basis until January, at which time the news was announced.
Fergus O'Dowd (Louth, Fine Gael)
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The key point concerns the reporting to the Department by the Dublin Airport Authority. This is where the communication did not take place. The authority is under the aegis of the Department. It is somewhat like the case in Shannon, in respect of which the Minister was not told the details directly. In this case, the fact is that there will be a very serious impact on the future of jobs in the aerospace industry. The jobs are extremely important and the staff are very highly qualified. No man or woman who will walk the line tomorrow and lose his or her job would ever have believed such an incredible amount of knowledge would be leaving this country. If it goes, it may never be replaced.
Does the Minister believe it satisfactory that he was not told what was taking place by the Dublin Airport Authority? Is this credible given the critical loss of the plant, as now appears to be the outcome? Is it acceptable that this fact was not reported to the Minister, notwithstanding all the other issues he raised. There is no point in being in Government if one does not know the full facts.
Noel Dempsey (Meath West, Fianna Fail)
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The parent company of SR Technics insisted on confidentiality. It probably could be said the Dublin Airport Authority breached confidentiality even by indicating talks were taking place. The decision to close the Dublin facility was conveyed to the IDA by SR Technics at a meeting with the Tánaiste on 11 February. I received an e-mail directly from the IDA that states it was aware for some months before that date, both from information that my Department passed to the Department of Enterprise, Trade and Employment and its own sources, that the company was engaged in a major review of group operations that would have consequences for the Dublin facility. It was in this context that local management asked the IDA for help in putting in place a package that could be given to the parent company. The loss of jobs will be considerable.
The Deputy asked me what the Government was doing. It continues in its efforts. The Tánaiste, through her agencies, has been meeting anybody who has expressed a reasonable interest in saving any or all of the jobs. There are ongoing talks in this regard. The relevant State agencies should be allowed to get on with this. The less heat generated in respect of this matter over the next few days, the better all round.
Tommy Broughan (Dublin North East, Labour)
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On a point of order, will the Minister withdraw a comment he made yesterday? It is on the record of the House.
Brendan Howlin (Wexford, Labour)
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That is not strictly a point of order.
Noel Dempsey (Meath West, Fianna Fail)
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The Deputy will be aware that I made my explanation yesterday and that the Ceann Comhairle accepted it.
Tommy Broughan (Dublin North East, Labour)
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The Ceann Comhairle did not accept it.
Noel Dempsey (Meath West, Fianna Fail)
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If the Deputy is prepared to say he misunderstood the matter or was misinformed and that he was not lying, I will accept that and withdraw the remark.
Brendan Howlin (Wexford, Labour)
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I do not want, and certainly I cannot facilitate, a debate on the matter now. As I stated this morning, if the Deputy feels strongly about this issue it is open to him to table a motion for the House to consider in proper debate.
Tommy Broughan (Dublin North East, Labour)
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We have to do business here on a range of matters affecting the transport portfolio and I have to ask questions. I want to be able to do my business. I received information which I reported in good faith. The Minister used an abusive term with regard to parliamentary democracy. I ask him to withdraw it.
Brendan Howlin (Wexford, Labour)
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The Deputy has made that point and the Chair can do no more. If the Deputy wishes to take the avenue I suggested——
Tommy Broughan (Dublin North East, Labour)
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Will the Minister show a bit of decency and graciousness?
Brendan Howlin (Wexford, Labour)
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Certainly it is not up to me to review decisions made yesterday. I am anxious to move on with business.
Tommy Broughan (Dublin North East, Labour)
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The Minister wants to talk.
Noel Dempsey (Meath West, Fianna Fail)
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I do not want to be in dispute with Deputy Broughan. Yesterday morning, Deputy Gilmore made the point that——
Tommy Broughan (Dublin North East, Labour)
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I ask the Leas-Cheann Comhairle to let the Minister finish.
Noel Dempsey (Meath West, Fianna Fail)
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I am trying to be helpful.
Noel Dempsey (Meath West, Fianna Fail)
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I will try. Deputy Gilmore stated that I had not communicated with the Department of Enterprise, Trade and Employment or the IDA and he based this on a statement made by Deputy Broughan, I presume on radio or in a briefing. This is untrue. I did and if the Deputy accepts this I will withdraw——
Tommy Broughan (Dublin North East, Labour)
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I accept that the Minister has a different interpretation of information which I have and which his colleague gave me also.
Brendan Howlin (Wexford, Labour)
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I am afraid I must bring this——
Brendan Howlin (Wexford, Labour)
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——particular debate to a conclusion and move on to Priority Question No. 2.
Tommy Broughan (Dublin North East, Labour)
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I accept the Minister was reporting in good faith if he withdraws his term.
Noel Dempsey (Meath West, Fianna Fail)
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I will withdraw the term as long as the Deputy realises that he was misinformed or misunderstood what he was told because I checked it with the IDA executive.
Tommy Broughan (Dublin North East, Labour)
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We will have a question later.