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Aviation Industry.

Dáil Éireann Debate, Tuesday - 2 February 2010

Tuesday, 2 February 2010

Questions (101)

Richard Bruton

Question:

185 Deputy Richard Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress made to date in 2010 in finding opportunities to retain the skill base at a company (details supplied) in new or revived enterprises; when she will report the progress; and her views on the attitude of the European Commission to the projects involved. [4854/10]

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Written answers

On September 2nd 2009, I announced the establishment of Dublin Aerospace Ltd, a new aviation maintenance provider supported by Government through Enterprise Ireland. Dublin Aerospace Ltd. aims to establish a best-in-class Maintenance, Repair and Overhaul (MRO) facility at Dublin Airport, servicing APUs, Landing Gear, Base Maintenance and Training. The company has commenced operations with 70 initial employees recruited. This number is anticipated to grow to 226 jobs.

The Garage business unit of SR Technics has been taken over by the M50 Truck and Van Centre who were successful in securing the airside vehicle maintenance contract from SR Technics. Aer Lingus have decided to undertake line maintenance operations previously contracted to SRT. A number of employees will transfer from SRT to the new line maintenance operation at Aer lingus. These new arrangements operate within the parameters of EU Single Market and State Aid rules, and are not subject to specific consultation with the EU Commission.

While the decision of SR Technics to move operations from Ireland is regrettable, the relocation of companies, and with them jobs, is a reality of the modern global economic environment for a highly developed economy such as Ireland. This shift in the structure of international trade poses challenges to economic policy makers in all developed countries, not just Ireland. It must be remembered that Ireland also experiences the benefits resulting from globalisation as new markets and business opportunities open up for Irish companies.

The Government, through IDA Ireland, is committed to continued marketing of Ireland as a location for companies interested in establishing aircraft maintenance and aviation engineering businesses. State agencies such as FÁS and Enterprise Ireland have made, and continue to make, the full range of their employment, training, guidance and advisory services available to workers made redundant at SR Technics.

Last October, my Department submitted a provisional application to the European Commission for co-financing support from the European Globalisation Adjustment Fund (EGF) towards the cost of a personalized package of training, educational and entrepreneurial services to workers made redundant at SR Technics. The Commission has sought additional information in relation to the application which my Department is currently preparing.

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