Deputy Joan Burton asked the Tánaiste and Minister for Enterprise, Trade and Employment the action she will take in view of the implications for employment and the economy in Dublin north and west of the announcement by a company, SR Technics, that it is to sell certain of its assets at Dublin Airport; the consultation she plans to have with the industrial development agencies to ensure the preservation of the maximum number of jobs possible; her assessment of the prospect of saving jobs; and if she will make a statement on the matter.

Tánaiste and Minister for Enterprise, Trade and Employment (Deputy Mary Coughlan): I have noted with serious concern yesterday’s announcement by SR Technics regarding the proposed sale of certain assets on their facility in Dublin airport. I have had extensive contacts with SR Technics over the past number of months and am extremely disappointed at this development. The firm has indicated that the bids received for its Dublin operations, which were supported by IDA Ireland and Enterprise Ireland, were what was described as “well below” their assessment of the current market value of the assets there.

The company has said that it has reached a provisional agreement with a bidder for the sale of the APU and landing gear assets. As part of this process, it has agreed not to disclose the bidder’s identity or any details pertaining to the details of the sale agreement until the transaction has been completed. The company has also said that it is still open to bids in any of the remaining parts of the business, including base maintenance, line maintenance, garage and the remaining tooling and equipment not included in the APU and landing gear transaction. I understand that SR Technics will accept bids up until next Friday, 22 May for base maintenance and Wednesday, 27 May for line maintenance or garage.

Without the key assets and equipment in place, the location of Dublin Airport is less attractive for companies to start an APU and-or landing gear maintenance shop. The skills base of the former employees will, however, remain an attraction for a short time. The line maintenance and garage division continues to employ over 200 people and a ten year contract is in place between SR Technics and Aer Lingus for the line maintenance of the Aer Lingus fleet.

Following the announcement by SR Technics on 12 February 2009, I established a team comprising IDA Ireland and Enterprise Ireland to work with SR Technics and interested parties to find the best possible solution. We also hired outside expertise on the aviation sector to help secure the best possible outcome. IDA Ireland and Enterprise Ireland established a team to market the operation internationally through their overseas office network and received over 16 expressions of interest in the facility. The team contacted the companies to evaluate their level of interest in the operation and encourage them to bring forward investment proposals to take over all or part of the operation. In all, SR Technics received over 30 expressions of interest and five bids from interested parties for parts of the business and carried out its assessment of these bids. The plan was that, following the assessment process, SR Technics would select a successful bidder, following which the State agencies, IDA Ireland and Enterprise Ireland, would evaluate the proposals to ascertain if they could support the proposals submitted. It is clear that SR Technics has moved to accept a bid for part of the business that was not among those expressions of interest received by the IDA Ireland and Enterprise Ireland team. Notwithstanding this move, I intend to continue to work with IDA Ireland, Enterprise Ireland and the Dublin Airport Authority, as well as the remaining bidders and any other interested parties, to maximise employment opportunities at the plant, in addition to the 250 plus jobs which remain in line maintenance and design.

Deputy Joan Burton: I thank the Tánaiste and Minister for Enterprise, Trade and Employment for her reply which strongly suggests she is throwing in the towel on the survival of an operating facility in Dublin for anything more than one quarter of the current workforce at SR Technics. She seems to accept as a reality that SR Technics can asset-strip key equipment from the Dublin facility, thus disabling SR Technics Dublin’s potential to restart operations and thereby compete with the revamped SR Technics operation in Geneva. Is she throwing in the towel and saying all that is salvageable are 250 of the line maintenance jobs because of the nature of these jobs and the maintenance of aircraft on the ground in the vicinity of Dublin Airport which is the home of the Aer Lingus fleet? The stripping of critical equipment is like the action of someone in a colony who when the country gains independence ups sticks and takes equipment with the result that the highly qualified, crème de la crème of industrial employees left behind are prevented from exercising their skills.

Deputy Mary Coughlan: Far from throwing in the towel, we have re-engaged with the unsuccessful bidders and any other potential and interested parties, one of whom I will meet this evening when the House rises. We will work with these bidders to see if they continue to have an interest in starting an APU and-or landing gear maintenance shop over and above the existing line maintenance operation that is part of the negotiations between Aer Lingus and SR Technics. I have indicated that it may be less attractive for these companies without the key assets and equipment but it is not for us to suppose until we ascertain from the unsuccessful bidders whether they are continuing to pursue the setting up of an APU and-or landing gear maintenance shop. We will continue with the bidders and other interested parties to discuss the possibility of a start-up operation and-or including the two other tenders that I mentioned.