Written answers

Thursday, 2 April 2009

Department of Transport

Company Closures

5:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 112: To ask the Minister for Transport the date he was informed by the Dublin Airport Authority that a company (details supplied) was negotiating with the DAA to sell back its leases on six hangars at Dublin Airport; when he informed the Department of Enterprise, Trade and Employment and the Industrial Development Authority Ireland of this development; the action taken by him when he was first informed of the company's plans to withdraw from Dublin Airport in order to protect and maintain the 1,200 jobs and the centre of aircraft maintenance and engineering at Dublin Airport; his views on the importance of maintaining an aviation engineering industry for air transport here; and if he will make a statement on the matter. [13929/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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At the outset I would like to emphasise that as Minister for Transport my focus is on ensuring that viable and sustainable air transport services operate from Irish airports. This will continue to have the potential to generate aviation related job creation, whether in aircraft maintenance or other spin-off activities in and around our airports.

As regards the Deputy's specific questions in relation to SR Technics, in mid January my Department was 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.

As regards contacts with the Department of Enterprise, Trade and Employment, once it became clear in November 2007 that the Aer Lingus maintenance contracts were being put out to tender, my Department alerted the Department of Enterprise, Trade and Employment to the potential implications for employment in the event that SR Technics were not successful in the tender competition. Since then there has been ongoing contact with that Department, including contact between the Tánaiste and myself, in the context of the threat to jobs.

As already indicated to the House, 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 continuing to work 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.

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