The recent weeks have been a disastrous time for the aviation industry. The crisis which has hit the industry following the attacks on New York and Washington will also have a huge impact on related sectors in the aviation business. The FLS plant at Dublin Airport has suffered a significant down turn in business since the events of 11 September. FLS works mainly on aircraft maintenance. Many of its customer airlines are drastically reducing their services, grounding many of their aircraft and cancelling many maintenance checks and other work. At present there is an excellent opportunity for FLS to diversify its current core business and win a substantial contract from Sikorsky to convert 12 B767 aircraft from civilian to cargo use. Winning this contract would guarantee the current jobs at FLS. However, winning the contract depends on a Government decision relating to the purchase of helicopters for search and rescue and Air Corps use.
This is a crucial issue for my constituency in north Dublin. In recent months the north side has
been devastated by a series of major job losses. Today the Minister for Public Enterprise, Deputy O'Rourke, repeated her demand that Aer Lingus should shed more than 2,000 jobs. It now appears from newspaper reports that the Government is prepared to turn its back on 1,500 FLS workers.
Three companies have bid for the Department of Defence helicopter contract. As part of its bid, Sikorsky included a number of offset deals. This is an investment the company is willing to direct towards companies in Ireland on foot of winning the contract. Offset deals are also known as industrial participation programmes. These are common features among our EU neighbours. As part of its bid for the Air Corps contract, Sikorsky outlined its investment commitments not only to FLS but to Pratt & Whitney in Baldonnel and Dell computers in Limerick. It is a win win situation for Irish industry, workers and the Department of Defence. Yet, incredibly, it appears the Department will not consider the offset aspect of Sikorsky's bid because it failed to include this criteria in its original tender documents.
I welcome the Minister to the House this evening. I want him to explain to the House why this marvellous opportunity for high technology Irish companies to win substantial new business was ignored in drawing up the tender documents for the Air Corps helicopter contract. Industrial participation programmes are not sweeteners, as some have tried to portray them. They are an integral part of defence procurement across the EU and they ensure the State and the economy get the best value possible from a substantial investment in military equipment. It is nothing short of scandalous that the Minister allowed the tender documents to issue without reference to industrial participation programmes. At best the Minister is guilty of gross incompetence. Did he know about the practice of industrial participation but fail to appreciate the critical importance of this mechanism for companies, such as FLS?
Opinion in Irish industry cannot believe the Government will spend up to £100 million on a helicopter contract and turn down the opportunity to secure benefits for companies in Ireland as a result. We are putting ourselves at a huge competitive disadvantage compared to our EU colleagues. I am aware that ICTU and IBEC, which are not natural bed fellows, have lobbied the Taoiseach about the added value of the Sikorsky bid. They joined the FLS workers who have expressed their views to me and other public representatives in north Dublin that this is the way forward.
Is the Minister deaf to this cry for common sense to prevail? Does he have the courage to understand he is responsible for an enormous error which could undermine jobs in FLS and deprive other Irish companies of much needed investment? Does he have the dignity to recognise this error and call a halt to the current tendering process and re-issue the documents with an industrial participation clause if he cannot proceed as I have outlined this evening? The Minister's handling of this contract has not been in the best interests of all concerned. Will he give serious consideration to re-evaluating the terms of the contract documents to ensure it is in the best interests of the country and the employees of FLS and other companies?