Finian McGrath (Dublin North Central, Independent)
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Question 255: To ask the Minister for Transport if he will respond to a query regarding a company (details supplied). [12964/09]

Charlie O'Connor (Dublin South West, Fianna Fail)
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Question 261: To ask the Minister for Transport his dealings in respect of the challenges for the workers at a company (details supplied); the position regarding same; and if he will make a statement on the matter. [13368/09]

Noel Dempsey (Meath West, Fianna Fail)
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I propose to take Questions Nos. 255 and 261 together.

In mid January the Department were informed by the DAA 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. I was informed of these developments at the time. The Department and I 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 they had signed a strict confidentiality agreement with SR Technics, they were therefore precluded from providing the Department with details of the discussions at that stage.

Subsequently, in late December the Department were advised by the DAA 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 would like to make it clear that both the Department and the DAA have at all times been sensitive to the employment implications of SR Technics closure. 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. I have instructed the Department to maintain contact with the Department of Enterprise Trade and Employment, IDA and Enterprise Ireland to ensure that any viable proposals can be facilitated

As regards the position of Aer Lingus, the company awarded the maintenance contracts to other providers following a competitive tender process in which SR Technics played a full part. It is not open to the Government to intervene in commercial matters of Aer Lingus and the Company has to be allowed the freedom to make such decisions in the interests of its shareholders. It should also be noted that under EU rules the airline would have had to put the maintenance contracts out to tender even if it was still under State ownership.