Written answers

Thursday, 19 February 2009

Department of Enterprise, Trade and Employment

Company Closures

5:00 pm

Photo of Finian McGrathFinian McGrath (Dublin North Central, Independent)
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Question 78: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will support a matter (details supplied). [6696/09]

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 82: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the meetings or proposed meetings she has had with the management of a company (details supplied) in respect of the proposed loss of employment at the company; the results of such meetings; if she has had meetings with the Department of Transport on the matter; if she has had discussions with Aer Lingus or another airline regarding the relocation of their maintenance of aeroplanes from overseas to Dublin; her plans to provide incentives to airlines to have their maintenance carried out at Dublin; and if she will make a statement on the matter. [6819/09]

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 83: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has had or is proposing to have meetings with the EU or with fellow EU ministerial colleagues or Departments in respect of problems in the airline industry, particularly in the maintenance section in view of the employment losses at a company (details supplied) in Dublin; the results of such meetings; and if she will make a statement on the matter. [6820/09]

Photo of Mary CoughlanMary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 78, 82 and 83 together.

I very much regret the closure of the SR Technics operation at Dublin Airport. I met with the company on 11th February along with my Secretary General and the Chief Executive Officer of IDA Ireland. I should add that a number of meetings had taken place between the State, its Agencies and the company in the past year. The company explained that it had been exploring all options for its Dublin operations including sale to another party. Unfortunately, it was not possible to proceed with any of these options.

The company explained the global deterioration that had taken place in its business since mid 2008 with contracts moving to Eastern Europe, Jordan, Turkey and Malta. The company confirmed that it was putting in place a 5 year restructuring plan and that it had already reduced its worldwide workforce by 500 in the last year. The company stated that the recent loss of major contracts, current business and economic forecasts and the high cost-base and over capacity at Dublin airport make it impossible to continue a sustainable business in Dublin.

SR Technics provides line maintenance for the Aer Lingus fleet at their Dublin base. This is a long-term contract awarded by Aer Lingus in 2008 following a competitive procurement process. The Company has indicated that it hopes to assign this and other smaller operations to another operator, which offers the potential of saving up to 200 jobs. I have had no discussions with Aer Lingus or Ryanair in regard to the location of their maintenance contracts. As regards raising the matter at EU level, my Department is currently considering the possibility of support under the EU Globalisation Fund.

IDA Ireland, has had an ongoing relationship with the company over many years and approved a significant Training Grant package for the company in 2006 to assist the company in maximising efficiencies and improving competitiveness. IDA also had discussions with the company in relation to its business plan and further opportunities to assist the company with additional financial incentives such as RD&I support with the emphasis on Innovation and Process Development.

FÁS has been at the forefront in providing intervention and support to employees who have been made redundant or who are facing redundancy. FÁS is currently in contact with SR Technics Management to discuss the services available from FÁS and the potential needs of the employees. Each response will be tailored on a case-by-case basis. FÁS Services to Business Unit will also be involved in these consultations. It is important to establish how best FÁS can assist the workers. Following this initial contact, a judgement will be made in relation to the level of FÁS intervention required.

I will be meeting with Union representatives very shortly to hear their concerns and to consider any proposals which they might have, and any assistance which the State development agencies, under my auspices, might be able to provide, in addition to supporting the workers in finding new employment, including assistance to re-skill and re-train to enhance their future employment potential. Any involvement by the State Agencies, IDA Ireland or Enterprise Ireland, in regard to seeking the retention of any work currently carried out by SR Technics in Dublin, will be dependent on a company or companies submitting proposals for consideration and seeking approval for State support for an undertaking in the normal way.

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