Aircraft maintenance specialist Dublin Aerospace has announced that it will not go ahead with a planned multi-million-euro expansion programme unless the rates system in Ireland is amended.

Conor McCarthy, who is a former Ryanair executive, established Dublin Aerospace at the Irish capital’s airport in 2009.

The company now employs 270 people and has recently taken on 14 apprentices; it distributes 20% of its profits to its workers.

The company expects to receive planning permission in the near future for a new maintenance hangar that would allow it to take on more business.

This could cost up to 15 million euros and could lead to the creation of as many as 150 extra jobs, but Mr McCarthy says he will not proceed with the development until the rates system changes.

He points out that, under the current rules, the company’s rates would be based on its floor space rather than the number of employee; this system currently adds 4,000 euros to the annual cost of employing each worker. “You’d be expanding to reduce profitability,” he said.