Bombardier won’t look for further investment from the North

Bombardier is not seeking any further investment from the Northern Ireland Executive specifically in its C series aircraft programme.

Michael Ryan, vice president and general manager of Bombardier Aerospace Belfast, said the Executive had "helped us hugely" in the process of securing the design and manufacture of the CSeries aircraft wings for its Belfast facility and supporting the programme but it would not be looking for further finance.

Cash-strapped Bombardier, which last week announced its intention to cut more than 1,000 jobs in the North, is currently seeking financial aid from the federal government of Canada.

Late last year Bombardier secured a $1 billion investment from the government of Québec in return for giving it a 49.5 per cent equity stake in a newly-created limited partnership which would assume the “assets, liabilities and obligations” of the C Series aircraft programme.

Bombardier said at the time that the investment would be used entirely for “cash flow purposes” of the C Series programme which is behind schedule and over budget by an estimated $2 billion.

It is believed that the aerospace group hopes the federal government of Canada will now step into provide a similar level of financial support.

Mr Ryan said the Canadian group would not go down the same route in Northern Ireland because of EU competition rules.

But he said he was confident that Bombardier Belfast remained a “source of competitive advantage” to the group and said it was of strategic importance to the group being located in the UK.

Meanwhile in a statement to the Assembly on Monday the North’s Enterprise Minister Jonathan Bell said between 2002 and 2015, Invest Northern Ireland had “offered £75 million of assistance to Bombardier, including £21 million for the C Series, in support of investment commitments totalling £844.5 million”.

The Minister said Bombardier had made it clear that the decision to cut its workforce in the North had been taken to “safeguard the company’s long term future globally and here in Northern Ireland”.

Mr Bell told the Assembly: “Bombardier has reaffirmed its commitment to the C Series programme and to Northern Ireland’s critical role in its delivery.

"While we try to absorb the news of significant job losses, it is important to take note of the announcement that Air Canada has signed a Letter of Intent for up to 75 CS300 aircraft and I view this as a positive development for the C Series project as a whole, and particularly as the wings for the aircraft are designed, developed and manufactured here in Northern Ireland."

He said since the privatisation of what was previously Short Brothers by the UK Government in 1989, Bombardier had invested around £2.6 billion in its six sites in Northern Ireland.

Mr Bell added: “While Bombardier has said there is nothing we can do to reverse last week’s decision, we will continue to work closely with the company and to explore other ways to support its drive for greater efficiencies.”