The decision by the Government, on the recommendation of Shannon Development, to approve grant support of IR£12 million to Shannon Aerospace for restructuring its operations was based on the implementation by the company of a viable business plan.
As the House is already aware, the restructuring is designed to secure the future of the company, safeguard existing employment of about 700 highly skilled workers and is projected to result in an increase in employment to 855 by the end of the decade.
The company's restructuring plan also involves large scale private investment, strengthened marketing and technical back-up support and future workload commitment. In this context, it includes substantial workload commitment by the shareholders, including Lufthansa, over the next two years as well as over the following years to the end of the decade.
The workload commitment, with projected business from the third party market and the grant and other elements of the support package, should ensure the future of the company which is recognised as being among the most efficient in Europe in the aircraft maintenance sector. Shannon Development is finalising the necessary legal documents with Shannon Aerospace and the shareholders which embody the commercial terms agreed by the parties.
As regards the Deputy's reference to the European Commission's investigation of the promised investment, the Commission sought details from the Irish authorities about the proposed aid to Shannon Aerospace to assess the aid in relation to Articles 92 and 93 of the EC Treaty which deal with State aids. This information was forwarded recently to the Commission and it was indicated that the aid was being provided under Ireland's approved existing framework of regional aids to industry. I am confident that the Commission's assessment will not adversely impact on the project.