Northern Ireland Assembly Flax Flower Logo

Northern Ireland Assembly

Monday 1 October 2001 (continued)

Sir Reg Empey:

I am acutely aware that Maydown Precision Engineering Ltd is one of those downstream companies. That company found itself with no market, but it took the skills and the equipment that it possessed and reinvented itself. It acquired and achieved skill levels that had hitherto been absent in that area. There was no tradition of those skills in that area. I have visited the plant and seen the amount of effort that is put into what they do and the positive change that has taken place.

The situation that Molins Tobacco Machinery Ltd faced several years ago is similar to the present one. In such circumstances, local effort can result in long-term sustainability in an alternative market. However, the same criteria will apply to any company in the north-west that is affected as are applied to companies elsewhere. My Colleague Dr Farren will shortly make that clear. There would be no difference in approach, although there may be a difference in scale. We must look at each case on its merits in order to see what steps should be taken. It is too early to tell what the downstream effects will be because we do know how long the deferments and deliveries will take.

There may be other angles to consider. The type of aircraft that is in demand may change. There could be an increase in demand for corporate jet aircraft, rather than for the airliners that Bombardier Shorts make, as companies may feel more comfortable if their executives fly under their own control. The demand for the smaller regional airliner that Bombardier Shorts specialises in might be less damaged in the long term than that for the large intercontinental airliners. We do not yet know what the full effect of the crisis will be. Therefore, it is premature to write off any of the downstream suppliers. Both the skill base and the area in which those companies specialise are fundamentally sound. The issue is long- term survival.

Mr Wells:

The Minister will not be surprised that I wish to raise the issue of B/E Aerospace in Kilkeel. As he is aware, I led a deputation of four vice-presidents from that company to meet the Minister on Friday evening. They emerged from the meeting heartened and encouraged by the positive response from IDB officials and yourself. Does the Minister accept that that company in Kilkeel is more exposed than others to any downturn in the domestic airline market in the United States? More than half of the company's production is for companies such as Northwest Airlines and American Airlines, both of which were directly affected by the terrible events of 11 September 2001. Does he accept that the loss of 320 jobs in Kilkeel would be a disaster for the town, and that it would be even more significant than the terrible loss of several thousand jobs in Belfast?

1.00 pm

Can he assure me that his officials will do everything in their power to support the suggested package, which may save Kilkeel from such an outcome? Will he also ensure that, if money for the aerospace industry is forthcoming from the Prime Minister, B/E Aerospace will receive funding from that package? The company is in a very difficult position.

Sir Reg Empey:

I am acutely aware of the significance of B/E Aerospace to the community that Mr Wells represents. There is no doubt that the 320 jobs provided by the company in Kilkeel make a huge contribution to the local economy. I had a meeting with the company on Friday evening and they are seized of the urgency of the situation. There have been large-scale deferments on its order book - on a similar scale to Bombardier Shorts's.

The Member will understand that I cannot go into the details of the meeting, but I can assure him that no effort will be spared should my Department be invited to assist in any corporate reorganisation that the company might propose. I assure him that we will make any response within a short space of time; my officials have already been instructed accordingly. We will make every effort to do what we can, because a lack of action could have tremendous consequences for the company.

Fundamentally, B/E Aerospace is an excellent company. It makes an excellent world-class product and, for a long time, it has followed the advice of Government agencies. It has moved upmarket and upgraded its skills; it is export- orientated and has achieved a worldwide reputation. All the fundamentals of the business are in place.

Some cynics might say that we are only minnows, that there is nothing that we can do, or that the Prime Minister cannot do certain things. However, the Lord helps those who help themselves. We can, and should, do something. Mr Wells has focused on one thing that we can do, and I assure him that should an opportunity arise to resolve the difficulties of the company, we will do everything possible.

Mr J Kelly:

Go raibh maith agat, a Cheann Comhairle. I thank the Minister for his comprehensive statement of concern in regard to the bleak economic outlook. He was correct to point out that the downturn existed before the tragic events of 11 September 2001 - those events accelerated and increased the downturn.

The Minister was right to chide John Taylor for his snide remarks about Aer Lingus - they were unfortunate and unwelcome in the circumstances. Will the Minister take the opportunity to encourage Belfast International Airport to take up the offer by Michael O'Leary of Ryanair to provide a service from the airport? In addition, what influence can he bring to bear to ensure that, despite our dismal economic future, the 1,000 jobs at the industrial centre on the Crumlin Road will be protected?

Sir Reg Empey:

With regard to the latter point, Mr Mallon and I visited north Belfast this morning and will be having discussions with public representatives of the area later today. We are acutely aware of the severe damage that could be inflicted if the development of that complex were inhibited. We are dealing with that matter and I hope that we will have an opportunity to address many issues affecting that area.

There is a downturn, but it has not been a collapse hitherto. However, with this other matter coming on top of it, international markets and finance have a big role to play. Peter Robinson made a comment about financiers earlier. There is a lot of suspicion, and if people were following the stock market, they would have seen a very significant fall in prices the day before the incident took place. There appears to be growing evidence that some people connected with, or informed by, people close to those who carried out this attack may very well have profited as a consequence. That is the sum indication of the scale and forces with which we are confronted: a mixture of natural downturn and the specific incidents that occurred on 11 September. I can assure the Member that we are very aware of that.

Regarding the international airport, it is entirely a matter for the airport to decide which airlines it negotiates with and attracts. The Department for Regional Development is responsible for airports. Naturally, from my Department's point of view and that of the tourist, the greater the choice, and the greater the ease of getting into and out of Northern Ireland, the better. We have already referred to the fact that you can now get to more airports in London than previously - the more the merrier. More access and competition helps consumers. However, I am in no position to suggest to the international airport how it should conduct its commercial negotiations.

Mr Savage:

I concur with what most Members have said. This is the second major industry in Northern Ireland to be hit by a crisis not of its own making. I want to know what we, as an elected body, can do to help alleviate the problems. I know there is no short-term solution to this. However, what can we do to help in the long term?

Sir Reg Empey:

There are a number of things. First, we can show that we are a region that understands international business and its needs and problems, and a region that can respond to and help its investors in the bad times as well as the good. There is no point in rolling out the red carpet for investors when things are going well if you are prepared to ignore them when things are difficult. This has to be done in a sensible way.

We also have the ability to influence policy decisions in London and Brussels. The Member referred to the difficulties that the agriculture industry has faced, again, through no fault of its own. Northern Ireland has fought back from a very difficult position in agriculture. We have dealt very effectively with foot-and-mouth disease so far, and I pay tribute to my Colleague, Bríd Rodgers, for that. It is a fact that we took a much more aggressive approach than our Government in London did. That is one of the reasons we have been able to suppress the worst effects of foot-and-mouth disease on our community so far. Similarly, other diseases have arisen through no fault of our own.

The Assembly can show that as a region we understand business; that we understand its problems and its advantages and are prepared to respond to them. We need to make suggestions to both our Government and the European Union. Often it is how individual policies are dealt with in the minutiae, in the small print, on a case-by-case basis, that defines our ability to come through difficulty as strongly as one could possibly hope to.

Mr Byrne:

I commend the Minister for his statement, and I pay tribute to Bombardier Shorts for the employment that it has provided for many years. However, we must appreciate the strategic significance of Aldergrove as an international airport. Will the Minister consider meeting the management of the airport, along with the Minister for Regional Development and the Minister of Finance and Personnel, to discuss how to guarantee it a viable future?

Sir Reg Empey:

I cannot respond to that suggestion without consulting my colleagues. Belfast International Airport is part of a conglomerate that is involved in a takeover battle, in which significant commercial issues are at stake. It would not be Government policy to subsidise such an organisation. However, there are policy objectives that we wish to achieve, and I am prepared to consult my ministerial Colleagues in that regard.

Mrs I Robinson:

Despite the fact that Northern Ireland has a workforce with many specialised skills, east Belfast and my constituency of Strangford, in particular, have sustained heavy job losses in shipbuilding, textiles, farming, fishing and, now, the aerospace industry.

The Minister rightly said that we should not join the chorus of doom and gloom. However, the employees and their families face an uncertain and gloomy future. Can the Minister be specific about the number of jobs - including those of subcontractors and suppliers - that will be lost due to the knock-on effect of the axing of the 2,200 jobs at Bombardier Shorts?

Sir Reg Empey:

The Member is correct to say that there have been a series of setbacks in that area over the past two years. Nonetheless, we have had some impact on the effects on the heavy engineering and textiles industries, and recovery is beginning to show.

The company has now given notice to 1,500 or 1,600 people. I do not know precisely where those jobs are, but the employees will be aware of the company's intentions. Sadly, when the news broke at the end of last week, all the families were under the sword of Damocles. Nobody knew which families would be affected. One can envisage the situation in those homes: people did not know whether they would be able to buy their children what they would like for Christmas, or whether they would have a job in the new year. The company has now identified the individuals affected and has embarked on a consultation process with the trade unions. I plan to meet the trade unions - tomorrow, I think - for a general discussion.

In addition to the 1,500 identified staff at Bombardier Shorts, approximately 300 subcontractors ceased operations on 21 September. There are also individuals on short- term contracts and other subcontractors, and that will bring the total to approximately 500 non-core employees directly affected by the decisions taken by Bombardier Aerospace. Other companies also have difficulties. I am not at liberty to identify them now; it is too early.

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Bombardier Shorts feeds out much of its work to subcontractors. It is not yet clear whether it will repatriate some of that work to itself or whether it will go on reduced work programmes. We also must bear in mind that some companies in the aerospace industry have accumulated work from other sources and may therefore be able to switch within their own order books. That will be very much on a case-by-case basis.

We now have approximately 1,500 identified individuals who will be entering the consultation processes. They are core Bombardier Shorts workers. In addition, there are approximately 500 people who are either on short-term contracts or are subcontractors working for Shorts, some of whom have already had their contracts terminated. Around 300 of those 500 had their contracts terminated on 21 September. That is the most accurate information that I can give the Member at this stage.

Mr Kennedy:

I welcome the Minister's strong commitment to the local economy and to those affected by the current crisis. On a more general issue, will the Minister undertake to reinforce the message to Her Majesty's Government, and the Prime Minister in particular, that international terrorism - be it Islamic or Irish - is not acceptable, and that that also includes groups of so-called freedom fighters? Will he also take the opportunity to condemn outright the anti-American rhetoric espoused by members of Sinn Féin and its mouthpieces?

Sir Reg Empey:

I told the Member that I had last week written to the Prime Minister. I did so because of the recognition that this issue was on a scale that could not be confined to a local level. The Prime Minister and other world leaders are undertaking a campaign against terrorism, and measures have been taken in London designed to attack the financial base of some terrorist organisations. It would be hollow to do that and yet allow some of our key strategic industries to be destroyed by terrorism. That could happen if adequate demand is not quickly re-established. I am acutely aware of the necessity to re-establish demand.

I can assure the Member that I will be in touch with the Prime Minister's office over the next few days. I will also be in touch with the Secretary of State for Trade and Industry, who has a specific role in the provision of launch aid for aerospace projects and in encouraging the development of "soft" finance schemes to enable the airlines to buy products at reduced rates of interest. The creation of demand is the key.

On the second point, we are getting into false definitions. There is no difference, in my view, between what happened to the World Trade Centre and what happened at Canary Wharf, for example, except in scale. There is no practical difference. People are talking about their freedom; this action is reducing the freedom of people to earn a living for their families. It is reducing the freedom of a community to live in peace and to prosper. Some of the mental and political contortions that people were able to do at the weekend were, therefore, perhaps nothing short of a condition needing the professional services that a person such as you could provide, Mr Speaker.

Dr McDonnell:

I compliment the Minister on his statement. It is reassuring to know that we are, as far as is possible, on top of the situation. That is vitally important.

Part of my question, about the interest, management or political overlordship of the airports, has been asked by my Colleague, Joe Byrne. I am concerned about air traffic. While Short Bros plc and various other industries are being affected, it is tragic for those directly involved. The problem with the shutdown of airports or air connections is that everyone is affected, and our ability to generate alternative jobs is further restricted due to the lack of air access. While this may not be acute in the short term, in the long term it is much more damaging.

What process, if any, is in place to influence the loss of air connections from Belfast International Airport? Mr Byrne made a suggestion about a tripartite approach. Can the Minister detail his communications with British Airways and Aer Lingus? I am particularly concerned about the innovative transatlantic service of Aer Lingus. I am also concerned about British Airways, although we have other alternative routes to London that will pick up any spare capacity.

I am deeply concerned about the only transatlantic route we had. I am aware that when the Minister was a Belfast city councillor, the Aer Lingus connection was vital to American industrialists investing in Northern Ireland. Is there any possibly, through the North/South economic bodies or the Irish Government, of persuading Aer Lingus to hold on to that service for one or two days a week?

Sir Reg Empey:

I am acutely aware of issues of air connection and access. As a region on the western edge of Europe, there are peripheral access difficulties. Economic factors are also at play. While airports are primarily a matter for the Department for Regional Development, I have a broad interest in their operation, particularly where tourism is concerned. I have received representations from Assembly Members about those airlines. The local Member of Parliament is involved, and meetings have been held. We have communicated with Belfast International Airport, and we are very concerned.

The transatlantic aspect is a unique feature of the Aer Lingus service, although the ability to use a British Airways service, and to book across the world, is another major consideration. On Friday afternoon, I expressed my concerns about the loss of the service to Mrs O'Rourke, the Minister in Dublin, and asked if that decision had been ratified. My understanding is that an assessment is being made of all the airline's routes. Aer Lingus is dependent on the profitability of the transatlantic routes, and the significant reduction in traffic is having huge cash flow implications. Each airline has to protect its future. I hope to have further discussions, and I was promised that the Minister would reply to me this week when matters become clearer.

The problem with British Airways is more profound. The Member will be aware that some have been expecting this decision.

Mr Speaker:

The Minister's time is up.

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Bombardier Aerospace Short Bros plc

 

The Minister for Employment and Learning (Dr Farren):

This statement is intended to complement the remarks that have been made by my Colleague, the Minister of Enterprise, Trade and Investment, who has outlined the severity of the announcement made by Bombardier Aerospace last week. The actual job losses are a cruel blow to the aerospace industry in Northern Ireland and to our local economy.

I look forward to the day - and I hope it will not be too far distant - when the aerospace industry will recover from its present problems and Bombardier Aerospace, no longer threatened by the present uncertainties, will continue creating the wealth and employment opportunities that have been a central feature of its contribution to the Northern Ireland economy.

Sir Reg Empey has demonstrated his commitment and resolve in tackling the issues facing the local economy as a result of the global instabilities. I assure the House that that resolve is shared by me, my Department and the entire Executive. I hope that our collective approach on this matter will send a very clear message that the devolved Government in Northern Ireland are committed to addressing such difficulties in a responsible, flexible and shared way. That is the cornerstone of good government, and I assure Members that the Executive are acting as one body on this important issue.

It is appropriate that we are united in our aim of assisting the company in every way open to us during this difficult period. We should be mindful of the impact of the redundancies on the lives of those people whose jobs are directly involved. For that reason, my Department has been proactively engaged with Shorts's management to ensure that we give full and comprehensive support to those who are losing their jobs.

For a number of years, Shorts has participated successfully in my Department's Bridge to Employment programme. The programme helps the long-term unemployed to undertake pre-employment training in ways tailored to the needs of particular employers. Through the programme, Bombardier Shorts has supported the recruitment and training of 500 people who were previously unemployed. This is an impressive figure, which demonstrates the contribution the company has made to our economy.

I am particularly concerned about the future of the 36 Bridge to Employment trainees who are currently with the company. I will be doing everything possible to help those trainees complete their training and find employment. I am particularly grateful to the Engineering Training Council for its expertise and knowledgeable support in this matter. It is hoped that any trainees facing redundancy can be relocated with other employers.

To help support those people being made redundant, Shorts has set aside space in Interpoint for the establishment of a temporary jobcentre. However, the entire Jobcentre network will ensure that a service is available to all affected employees no matter where they live. The Training and Employment Agency (T&EA) is working with Shorts to ensure that a full range of advisory and support services are available to all who will be losing their jobs.

I recognise that financial issues will be a major concern for all workers affected. I am therefore very pleased that the strong partnership that has been developing in recent years between the T&EA and the Social Security Agency (SSA) is very much in evidence, and I am grateful to the Department for Social Development and its Minister for the support of his staff. SSA staff who are qualified to advise people on benefit entitlements will be working alongside people who can advise on alternative employment and training opportunities. There will also be advice on redundancy payment issues and - for those who may be interested - support and advice from LEDU on self-employment and business start-up issues. I am grateful to Sir Reg Empey for his Department's involvement and support.

As details emerge on the precise numbers, phasing and geographical location of the redundancies, my Department will take the lead in ensuring that the services that I have described are available to all.

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As Members may be aware, my Department is experienced in accommodating the needs and anxieties of people who have been either made redundant or who are threatened with that prospect. Most notably, a similar situation arose in Harland and Wolff last year, and we were able to provide a suitable response at that time similar to that which I have described above. We learned from that experience and we will ensure that all support that can be provided to Bombardier Shorts will be made available.

In conclusion, I assure Members, and all workers in Bombardier Shorts, whose future at this moment appears bleak, that I will be doing everything in my power to support and help those who are losing their employment. I am sure that Members will share my hopes that the present problems in the aerospace industry will be temporary and that it will not be too long before we see the re-emergence of Shorts, and of the many other companies associated with the aerospace industry, as strong, profitable enterprises creating good quality jobs for our people.

The Executive's response to the immediate needs of those being made redundant is a clear example - albeit in circumstances that we could do without - of joined- up Government working in the best interests of all our citizens.

The Chairperson of the Committee for Employment and Learning (Dr Birnie):

The Committee for Employment and Learning shares the concerns of those sadly affected by these large-scale redundancies. As the Minister said, we can only hope that world aviation will rebound as it did after the Gulf War. We wish both Ministers, and all others involved, well in their response.

How successful was the task force that was set up in October 2000 to deal with redundancies at Harland and Wolff, and which is perhaps being seen as a model for the current response? As there is now to be a similar initiative, will anything be done differently on this occasion?

The Minister referred to people receiving training under the Bridge to Employment programme. Will he also attempt to ensure that people on modern apprenticeships with Bombardier Shorts can, as far as possible, complete their training?

Dr Farren:

Although our research has not yet been concluded on the circumstances of employees at Harland and Wolff, we can show certain trends. For example, 67% of those who were laid off found alternative employment within six months; 9% are classed as economically inactive; and 1% returned to further education and training. It may be a positive indicator for the Bombardier Shorts workforce that less than one in four of those who were laid off at Harland and Wolff were without employment after six months.

The Member will appreciate that surveys are never 100% accurate in tracking everyone affected, so we are unable to paint the full picture. Nonetheless, the trends were positive ones. The general economic circumstances then were more positive than they are now. We may not be in quite such auspicious circumstances today. Nonetheless, the model applied by the Department for Employment and Learning has proven to be successful.

There are over 100 modern apprentices and they will also be given whatever assistance is possible. The Department must contact those who will be made redundant, establish their needs and work from there. The Department will be able to assure all workers - in whatever category - that its advice, information and direction on retraining, or information for those who want to enter self-employment, will be made available.

Mrs Courtney:

I regret that Members must talk about redundancies on this scale. What services will the Department for Employment and Learning provide to employees who face such redundancies?

Dr Farren:

In my statement I attempted to detail many of the more important forms of support that will be available wherever redundancies occur. The Department will provide advice on vacancies and forms of training through local jobcentres. In conjunction with the Department for Social Development we will provide advice on redundancy payments, social security and welfare support.

Mr M Murphy:

Go raibh maith agat, a Cheann Comhairle. I welcome the Minister's statement, but I draw his attention to Kilkeel where there have already been lay-offs in the fishing industry and where the farming community is facing hardship due to the foot-and-mouth disease crisis. A crisis is now looming in the Kilkeel aerospace company, B/E Aerospace, which has trained its staff. What local retraining and job opportunities will be made available by the Department if there are to be job losses? Go raibh maith agat.

Dr Farren:

It is impossible to be precise about the nature of the retraining because much of what is required has to be identified by those who are being made redundant. The Department is attempting to respond to the needs of each individual. We want to direct those redundant workers who wish to undergo a form of retraining to the training opportunities available in the network of further education colleges and private providers in the training sector.

Training needs must be identified, and staff in jobcentres are expert in doing that. They will be the workers' first point of contact and will provide the information, guidance and direction based on the individual's training needs.

Mr Neeson:

I commend the Bridge to Employment programme, but in many ways it only deals with the tip of the iceberg. The serious job losses announced by Bombardier Shorts underline that. However, the Department for Employment and Learning has been active and successful in the institutes of further education in providing those courses and training for young people that reflect the needs of enterprise and industry. Will the Minister assure me that that sort of innovation will continue in his Department?

Dr Farren:

The question highlights the high level of responsiveness that local Departments can make to situations that arise in local enterprises. It was suggested earlier that we can do very little. However, my Department has responded rapidly and flexibly to training needs in tandem with the higher and further education colleges. That demonstrates how we can meet the needs of overseas or indigenous investors. We can therefore inspire local enterprises with the confidence that support is available for decisions on further investment.

In outlining those initiatives, my officials, along with those from the Department of Enterprise, Trade and Investment and from the Department for Social Development, are demonstrating their flexibility, responsiveness, and real and deep concern for the impact on the lives of the workers and their families.

Mrs Carson:

The announcement is a dire blow for the Northern Ireland aerospace industry, as are the knock-on effects that it will have on the local economy.

Are Northern Ireland plants more vulnerable because they are engaged only in the manufacturing aspect of the industry, as technological and design developments are carried out in Canada? Will that trend be irreversible if the plants are closed? We risk losing a world-class workforce. How can the Minister retain these skills so that we can benefit from them in future when the industry experiences an upturn?

Dr Farren:

The Member raises a worry that we all share when we consider the impact on local manufacturing of an international conglomerate such as Bombardier Shorts. The company may question its investment here in the longer term. The challenge is posed: can our Departments meet, in a flexible way, the needs of all the other enterprises in Northern Ireland that form part of multinationals? Can we assure investors that we can provide for their skills needs? We have been doing so with many companies, both those that are indigenous and those that form part of an international conglomerate. We have achieved that in many ways in the past two years, and, in my experience, we have done so to the considerable satisfaction of owners and investors.

We will continue to do that, because that is how we can demonstrate our desire to support investors. We have a capable and highly skilled workforce, and we work hard to ensure that it is as highly skilled as the new enterprises demand. Our efforts receive appreciation and acknowledgement from many sectors of management in the new enterprises, and I trust that that will continue. If it does, it will give confidence to potential investors that this is a place in which to locate their companies, whether local or overseas.

1.45 pm

Ms Lewsley:

The speedy response to this crisis proves the strengths of the devolved institutions and interdepartmental working. I also pay tribute to Bombardier Shorts and to its commitment to its employees. It is to be hoped that after the Fokker crisis Bombardier Shorts will become more competitive and, at the same time, prepare for the orders that have been deferred and that may come back on track later.

The issues are redundancies and the lack of employment. Considering that almost 900 jobs will be lost before Christmas and that more than 400 jobs could be lost by subcontractors of Bombardier Shorts, how will the subcontractors be helped through the crisis?

Dr Farren:

The response to the subcontractors will be the same as the response we are making to the workers of Bombardier Shorts. Local jobcentres are prepared to provide the sort of advice to workers who have been made redundant that I have described. Sir Reg Empey's Department may provide other forms of support for contractors, and for industry in general, to alleviate the crises in which they may find themselves in the immediate future.

Responsiveness, flexibility and concern are being expressed across the Government here, and the workers and management appreciate that.

Mr Shannon:

This is a difficult time for everyone, not least for those who may lose their jobs. I know that the Minister has been directly involved with the Ards Institute of Further and Higher Education, and he mentioned the Bridge to Employment scheme, which has been training people specifically for Bombardier Shorts. What will happen if these people are made redundant? How will the scheme be affected?

The Ards institute is already oversubscribed, and there are few places available for retraining schemes. With particular reference to that institute, will the Department ensure that retraining money and places are made available for those who may lose their jobs? What will be done for the subcontractors and workers from subsidiary companies?

Dr Farren:

The Member must appreciate that we have not yet received details about the needs of workers who are likely to be made redundant. When that information becomes available and the jobcentres assess the needs, we will be able to help people to make decisions about the kind of assistance they need.

If they need training, we will direct them to the training that they believe could be beneficial and we will ensure that it is available. We have considerable experience, through the various forms of training support, to enable us to meet the challenges. The Engineering Training Council is assisting us in identifying possible alternative placements for those on the Bridge to Employment training programme so that opportunities can be provided to enable them to complete training and to obtain employment when the training has been completed.

The Bridge to Employment scheme is only one example of how Bombardier Shorts has been working with us to provide targeted training opportunities for the long-term unemployed. It is regrettable that those on the programme are unlikely, as it now seems, to find an outlet in Shorts for the skills that they are acquiring. Every assistance is being mobilised to ensure that vacancies elsewhere will be open to them.

Mrs Nelis:

Go raibh maith agat, a Cheann Comhairle. I share the concerns of both Ministers about such large- scale redundancies at Bombardier Shorts. Those job losses could also affect my constituency of Foyle and the small enterprise of Maydown Precision Engineering Ltd. Does the Minister have any evidence that that company will be affected, and does he have a rescue package for the small firm, given that the Foyle constituency has lost well over 3,000 jobs in recent years. Does the Minister have any indication of the number of indirect job losses that there may be? What precisely can LEDU do to assist small and medium-sized enterprises?

Mr Speaker:

Before I call upon the Minister to respond, I must say that he is not necessarily responsible for LEDU. In fairness to the Minister, some of the Member's questions may have to be answered in writing by another Minister.

Dr Farren:

We do not yet have precise information on the full impact, although we have more information about the likely impact on Bombardier Shorts than elsewhere. Until that information is available, we will be unable to take precise steps. Today, I am outlining our general approach, the initiative that we are taking with Bombardier Shorts on the temporary jobcentre at Interpoint and the nature of the support through information guidance that will be made available to workers who are made redundant.

I am sure that all Members hope that the impact elsewhere will be at the lowest possible level and that there will be no impact at all on Maydown Precision Engineering Ltd. If there is an impact, we will provide the necessary information, guidance and direction for those concerned. In the event of a recovery, we will provide the service in conjunction with management to ensure that any upturn can be adequately and effectively met with the skills required.

Mr Beggs:

Research and development are important for maintaining long-term jobs in Northern Ireland. Does the Minister agree that such an instance reinforces the importance of long-term investment in research and development so that jobs are grown and sustained? Will this cause him to reassess the importance of research and development to our local economy?

Dr Farren:

We are very conscious of the significance of research and development, whether in the aerospace industry or in any other. We have worked very hard with the universities and with IRTU in the Department of Enterprise, Trade and Investment to ensure that we maximise support for research and development.

With regard to the aerospace industry, the Member may be aware that Bombardier Shorts has invested significantly in facilities and personnel for research to be conducted in such places as Queen's University, Belfast. That is a statement of its commitment to the development of research and development in aerospace in Northern Ireland.

The Member may be assured of my Department's deep concern. We have reviewed the matter of research and development, and a working party is determining how we, together with our universities and industry, can better support it. As a result of the NI Economic Council's report of last year, a co-ordinated approach is being adopted across the Government.

Dr Hendron:

I thank Bombardier Shorts for all its work and interest in Northern Ireland over the years. My constituency of West Belfast is also affected.

We all understand the impact of redundancy on the lives of those whose jobs are directly affected. I appreciate that the Minister's Department has been engaged with management at Bombardier Shorts to ensure that full and comprehensive support can be given to those who will lose their jobs. Should a temporary jobcentre be set up in Shorts?

Dr Farren:

In conjunction with Bombardier Shorts a temporary jobcentre is being established at Interpoint in the heart of the city. That will directly target the needs of those from Bombardier Shorts who become redundant. I must stress, however, that workers may not find the location convenient to plants at Newtownabbey or Dunmurry. It may be more convenient for them to use the services of staff at their local jobcentres: staff who will be just as competent and expert at dealing with their needs.

I trust that both the temporary centre and the existing network of jobcentres will provide an adequate response to the particular needs of those who seek the advice and services that are available.

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