SR Technics buyout would save 900 jobs, says Gilmore

THE PROPOSED management buyout of the Dublin SR Technics plant would save 900 of the 1,200 jobs there, Labour leader Eamon Gilmore told the Dáil.

The proposed buyout would cost an estimated €25 million, he said.

“That may seem like a great deal of money,” he added. “However, if these people lose their jobs, the Government will be obliged to spend that amount next year in social welfare payments, refunding redundancy payments that will have to be made, and paying secondary benefits to people.”

In addition, said Mr Gilmore, account must be taken of the tax revenue that would be lost. He said that the Government should “get off its butt’’ and do what was required to save the jobs.

He added that the business was being transferred to Switzerland, which was hardly a low-cost economy. The equipment and hangars relating to aircraft maintenance were already in place at the Dublin plant and a great skills base had been built up among the company’s employees over the years.

Taoiseach Brian Cowen said that he did not accept that the Government, in tandem with the State agencies, was not seeking to find a solution to the problem or a viable way forward for the company in question.

“There have been some serious expressions of interest and, as the deputy is aware, our efforts in respect of the company are ongoing.

Later, Minister for Enterprise Trade and Employment Mary Coughlan confirmed that three proposals were being evaluated by the IDA for the acquisition of the plant. A confidential meeting had taken place on Friday with the companies involved.

“They were asked to revert to the IDA on Monday, and there will be further discussions with them.’’ Ms Coughlan said that some slight confusion had arisen about a number of the proposals, “but I believe that one in particular, which is perceived as a management buyout in consultation with the unions, is the proposal that everyone is discussing’’.

Ms Coughlan said that, globally, SR Technics was in financial difficulties and had made the decision to get out of baseline maintenance and to move on to the more high technology side. “This is the framework in which we are working at present.’’

Dr James Reilly (FG, Dublin North) said that the IDA might be requested to provide €25 million.

Mr Cowen said that what would keep people in employment was the objective of the Government, as well as everyone else, and to obtain and provide a viable way forward for the company.

He said that Mr Gilmore was not alone in his concern, and work had been ongoing on the matter for some months.

He presumed, he said, that Mr Gilmore did not regard the people in IDA Ireland or Enterprise Ireland as being not interested in trying to maintain employment, although he could throw his political attacks at the Government.