A pledge by a US multinational to spend over £60 million on business in Ireland if it wins a contract to supply five helicopters to the Defence Forces should be taken seriously, two Labour TDs have said.
Ms Roisin Shortall and Mr Tommy Broughan said the "wider economic benefits" offered by the United Technologies subsidiary, Sikorsky, should weigh heavily with the Minister for Defence, Mr Smith.
United Technologies is ready to convert nine Boeing 767s for use as freight carriers at the FLS Aerospace plant in Dublin Airport - a move which could safeguard nearly 2,000 jobs.
"Over 1,000 jobs have gone on the northside of Dublin in recent weeks with the closure of Gateway and Kylemore Bakeries. The protection of existing jobs must now be a priority for the Government. Winning a $50 million contract would give long-term security to the workers at FLS. This fact should be taken into consideration when the Government is deciding on the Air Corps contract," said Deputies Shortall and Broughan.
The TDs are expected to meet the Minister for Defence and possibly the Taoiseach, Mr Ahern, next week.
The decision of the Department not to demand spending in Ireland in return for the helicopter contract has caused considerable surprise in many quarters. The practice - known as offset - is common elsewhere. The Scandinavian countries demand a 3:1 investment in return for military contracts.
However, the Department of Defence refuses to follow international practice. "It has not been the practice to assess tenders in this way," a senior official said last night.
