Brian Hayes (Dublin South West, Fine Gael)
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Question 117: To ask the Tánaiste and Minister for Enterprise, Trade and Employment the details of her discussions with the unions that she met from a company (details supplied) on 19 February 2009, in connection with the potential loss of jobs in the company; the alternatives she is looking at in connection with this issue; and if she will make a statement on the matter. [7833/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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I very much regret the announced closure of the SR Technics operation at Dublin Airport. My most recent meeting on the matter was on Thursday last, 19 February, with a delegation representing the Trade Union interests in the Dublin operation, who outlined their concerns. Similar concerns have been relayed to me in the many approaches I have had from public representatives.

The Government is anxious that as many jobs as possible are 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 6 months. There are a number of expressions of interest from different parties in possibly all or part of the business and time is needed to assess these proposals. The Government is anxious that the facility and the workers will maintain their IAA approval status while the alternative proposals are being progressed.

I am conveying these points, and the widespread concern in Ireland that every effort be made to maintain the maximum number of jobs at the facility at Dublin Airport, to SR Technics at Group level, as a follow-on to my meeting with the company on 11th February, when I was accompanied by my Secretary General and the Chief Executive of IDA.

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 had explained that it had been exploring all options for its Dublin operations, including sale to another party, but had not found it possible to proceed with any of these options. The company outlined the deterioration that had taken place in its global business since mid 2008, with contracts moving to Eastern Europe, Jordan, Turkey and Malta. It 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, its current business and economic forecasts, as well as its high cost-base and over capacity at Dublin airport, had made 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 had indicated that it hoped to assign this and other smaller operations to another operator, offering the potential of saving up to 200 jobs. 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.

In the light of the announced closure of the Dublin plant, FÁS has been at the forefront in providing intervention and support to employees facing redundancy. It 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.

As regards efforts to save some or all of the jobs involved, actual involvement by IDA Ireland or Enterprise Ireland in providing financial or other supports 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. In the meantime IDA Ireland are actively exploring options with interest parties.