I move that the Bill be now read a Second Time. The main purpose of this Bill is to authorise an increase of £5,000,000 in the amount which Bord na Móna may borrow from the Central Fund or other sources for the performance of its functions. This increase will permit the board to borrow up to a maximum of £19,000,000. The Bill also removes the limit of £2,000,000 on the amount which the board may, with the consent of the Ministers for Finance and Industry and Commerce, borrow from sources other than the Central Fund. Total borrowings will, of course, be limited in any event to the overriding figure of £19,000,000.
The capital of Bord na Móna was fixed at £14,000,000 by the Turf Development Act, 1953. At that time, it was estimated that output in 1960 would be: 874,000 tons of machine turf of which at least 390,000 tons would be used for electricity generation; 2,530,000 tons of milled peat practically all of which was to be used for electricity generation; between 45,000 and 50,000 tons of briquettes and between 100,000 and 150,000 bales of peat moss.
The board's development programme was, of course, closely related to the E.S.B. generation programme. When the E.S.B. programme was revised early in 1956, a total of 180 MW. which it had been intended to base on milled peat was eliminated from the programme. This reduced E.S.B. estimated requirements of milled peat by over 1,000,000 tons per annum. The planned capacity of the Ferbane generating station, for which the Boora Bog was being developed, was reduced from 100 MW. to 60 MW. and that of the Rhode Station, for which Derrygreenagh Bog was being developed, from 80 MW. to 40 MW. Bellacorick Station, which was to be based on Oweninny Bog, and Shannonbridge Station, based on Blackwater Bog, were postponed indefinitely. Approval has been given for the construction of a briquetting factory on each of the bogs at Boora and Derrygreenagh, each of which will produce annually 100,000 tons of briquettes and will require a total of about 600,000 tons of milled peat per annum. The Turf Development Act, 1957, authorised the board to obtain the capital for these factories, estimated to be £1,800,000. as far as possible from sources other than the Exchequer. As the House is aware the board has, in fact, already received a loan of £500,000 from Messrs. Arthur Guinness, Son & Co., Ltd.
The revised estimates of Bord na Móna's production for 1960 were then: milled peat, 1,300,000 tons per annum, of which about 450,000 tons would be used for briquettes and the balance for electricity generation; machine turf, 960,000 tons per annum of which about 500,000 tons would be used in the E.S.B. stations and the balance for industrial and domestic purposes; briquettes, 150,000 tons by 1960 increasing ultimately to 250,000; and peat moss, 200,000 bales.
In October, 1957, the Government decided that the generating station at Bellacorick, County Mayo, should be reinstated in the E.S.B. generation programme. The station is expected to come into commission in 1962-63. It will require about 320,000 tons of milled peat per annum and Bord na Móna are at present preparing the Oweninny Bog to supply that quantity.
During the past year, discussions have been proceeding regarding the electricity generating capacity which will be required subsequent to the commissioning of the Bellacorick station. As a result of these discussions the E.S.B have decided to install an additional 40 MW. at Rhode in 1964 and an additional 20 MW. at Ferbane some time prior to 1965-66. To meet the requirements of the E.S.B., Bord na Móna propose to develop new areas of bog at Boora, for the Ferbane Station, and at Derrygreenagh, for the Rhode Station, to produce 550,000 tons of milled peat per annum. I will shortly be introducing a Bill to provide amongst other things for increased capital for the E.S.B.
Bord na Móna also plan to supply milled peat for the proposed nitrogenous fertiliser factory. Deputies will recollect that it was announced last August that Blackwater Bog, County Offaly, would be reserved as a source of milled peat for a factory for the production of ammonium nitrate. Some development work has already been carried out on Blackwater Bog and Bord na Móna are arranging to have the bog ready for further development when required. The economic and technical problems associated with the establishment of the factory are at present being examined. The requirements of the factory are estimated at 150,000 tons of milled peat annually for 60 years.
In the course of their discussions with the E.S.B., Bord na Móna undertook to make available 350,000 tons of milled peat per annum from 1965-66 onwards in the Garryduff group of bogs which are situated on the opposite side of the Shannon from Blackwater bog. It is intended that the two bogs should be developed as one unit to supply the power-station and the fertiliser factory. When the E.S.B. erect this station, the total production of Bord na Móna will amount to 3,000,000 tons of milled peat in 1965-66, of which 2.1 million tons will be used for electricity generation, 750,000 tons for the production of briquettes in the three factories and 150,000 tons for the nitrogenous fertiliser factory, in addition to the 1,000,000 tons of sod peat, of which 500,000 tons will be used for electricity generation.
In the exercise of their powers under the Turf Development Act, Bord na Móna will, it is estimated, have borrowed a total of not less than £13,928,000 by——