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Dáil Éireann debate -
Thursday, 30 Mar 1995

Vol. 451 No. 4

Adjournment Debate. - Shannon Aerospace.

I welcome the opportunity to raise this matter on the Adjournment. I have every respect for the Minister of State, Deputy Doyle, but I am disappointed that none of the three Ministers at the Department of Enterprise and Employment has seen fit to come into the House to reply to this very important issue. This is highly unprofessional. When I was in the Department there was no such lack of professionalism.

When I raised this matter on Tuesday I was told that this was a commercially sensitive matter, yet today's edition of the Irish Independent carries an interview with the Minister for Enterprise and Employment, Deputy Bruton, about Shannon Aerospace. He ends the interview by saying that he does not wish to comment further on the matter and that it would not be proper for anyone to publicly debate it. The Minister gave this exclusive interview to the Irish Independent on the basis that no one else was to refer to the matter. When I requested the Adjournment of the Dáil under Standing Order 30 this morning to discuss this matter I was told that it was not in order.

The first person to whom the characteristics of insensitivity and lack of professionalism can be applied is the Minister who chose to discuss a commercially sensitive issue in the newspapers rather than deal with it in the House. To add insult to injury, he went on to say that no one else should debate the matter publicly. Even though he said in the newspaper report that he is considering investing an extra £15 million in the company, the Minister did not accept my request to raise the matter in the House as a matter of urgency. He has treated this House with disrespect in regard to this matter.

Shannon Aerospace employs 700 people. When I visited Shannon Aerospace during my term of office in the Department of Enterprise and Employment I was very impressed by the quality of the work and the motivation and commitment of its employees. In reply to a parliamentary question the Minister said that since 1992 the State has allocated £23 million to Shannon Aerospace. This company, which has an employment potential of 800, is experiencing very grave difficulties. I understand a series of meetings are being held in Europe which will decide matters relevant to this company. Those meetings have been ill-served by the Minister for Enterprise and Employment who burst impetuously into print yesterday, and copies of the newspaper are now winging their way around various corners of the world.

Why is none of the three Ministers here to answer my question? Why was an attempt made to muzzle me on this matter when it was already in print? Will the Minister of State who is answering for the three Ministers in the Department of Enterprise and Employment give the House an account of the £23 million spent to date, the funding which is sought and an assurance that the 700 jobs in Shannon Aerospace will be maintained and consolidated?

As Minister of State at the Departments of the Taoiseach, Finance and Transport, Energy and Communications, I can assure the Deputy that, from the Taoiseach's office down, there is concern for the future of Shannon Aerospace. The matter is not sectionalised in any Department and it will take the involvement of more than one Department to resolve the difficulties in the company.

My question was addressed to the Minister for Enterprise and Employment.

I accept that, and as Minister of State at three Departments with a great interest in the outcome of this difficulty, I will respond.

Shannon Aerospace Limited is the aircraft maintenance facility jointly established by Lufthansa, Swissair and GPA. It commenced trading in 1992 from a newly constructed state-of-theart maintenance facility located at Shannon Airport. Considerable State funding has been made available by Shannon Development — SFADCo — to this firm; this funding amounts to £22.956 million comprising capital and training grants of £20 million and redeemable preference shares of £2.956 million.

The private sector shareholders, who own the company, have made a substantial investment in this facility which currently employs about 700 people in well paid skilled employment. This level of employment illustrates clearly the significance of the company in a regional, as well as national context. It has also acted as a vehicle for the transfer of technology and skills and has established a reputation for high quality work and performance.

A number of events, outside the company's control, have adversely affected its performance to date and created serious financial problems. They include, in particular, the aerospace industry recession brought about by the Gulf War and the continuing depressed market in airframe maintenance. This market, as we are well aware from the TEAM Aer Lingus difficulties, now has considerable overcapacity and competition for market share is intense. These unfavourable developments have had a serious impact on the financial performance of the company, leading to substantial losses. In short, the workload envisaged for the company on its establishment has not materialised.

The company has proposed a restructuring plan with a view to putting the facility on a viable and secure basis for the future. SFADCo has been involved in intensive discussions with the company and its shareholders on this restructuring plan which, if adopted, would involve significant additional shareholder and State investment.

My colleague, the Minister for Enterprise and Employment, Deputy Bruton, also had discussions recently with the company about its difficulties which are continuing. It would not be appropriate to make any comment on them or to bring matters under consideration to the floor of the House now.

It is only appropriate to give them to the Irish Independent,

Everything possible is being done to safeguard 700 jobs directly affected in the Shannon area. The House can rest assured that everything possible is being done at the highest level to address this problem.

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