asked the Minister for Energy the number of reviews that have now been carried out on the building of the briquette factory at Derryfadda, Ballyforan; when the present review will be completed; and when work will be carried out on the project.
17.
Ceisteanna—Questions. Oral Answers. - County Galway Briquette Factory.
16.
andMr. Kitt asked the Minister for Energy the reasons that the building of the briquette factory at Derryfadda, Ballyforan, Ballinasloe, County Galway has not commenced; the amount of money allocated to this project in 1984, the number of workers that will be employed in the construction of the factory; the date on which construction will commence; the number of permanent workers to be employed in the factory on its completion; and if he will make a statement on the matter.
With the permission of the Ceann Comhairle I propose to take Questions Nos. 16 and 17 together.
The original proposals for a briquette factory of 260,000 tonnes at Ballyforan were reviewed in 1982 when the board decided that the project should proceed as two separate developments of 150,000 tonnes each, approval of the second unit to be decided when the success and viability of the first unit had been established.
As part of an overall review of all major capital projects under the aegis of my Department, initiated when the Government took office more than a year ago, a further detailed review of the project was undertaken.
A report on the review of the project was submitted to me after I assumed responsibility for energy matters. I am considering the matter at present and will be submitting my recommendations to the Government as soon as possible.
This year £15.4 million has been allocated in the Public Capital Programme for the Ballyforan project. It is estimated that the number of jobs at an initial stage of construction would be 75. This number could be expected to increase to 180 before the factory has been completed.
Is the Minister aware that the review, which we understood last year to have been at a very advanced stage when the Minister of State spoke on the Turf Development Bill, has been delayed? Can he say what has prevented the Government from announcing that the project will be proceeded with?
I have said in my reply that the review of the project was submitted to me in the past month. I am considering it and I hope to have it before the Government as early as possible.
Will the Minister indicate if the report is favourably disposed to the continuation of this project, which was initiated and financed by Fianna Fáil?
I am not prepared to indicate at the moment the terms of the report, because I will have to go to the Government with it before announcing its contents.
Can the Minister tell the House what rate of return on investment are the Government seeking in relation to this project?
That is for the Government to decide in due course.
In the last couple of weeks the Government have said they expect a commercial rate of return of about 5 per cent. Is that the criterion to be applied to this project?
I said that that is a matter for the Government to consider in looking at the overall project.
Arising out of what the Minister has said——
I am calling on Deputy Noel Treacy,
(Interruptions.)
I have one final question in relation to what the Minister for Energy said. He is trying to contradict what the Government said a few weeks ago when they said specifically they wanted a 5 per cent return. I am asking the Minister to say straight out that that is the rate of return applicable to this project, or is he saying that the Government have not any rate of return decided on in relation to capital projects by the State? Have they a rate of return specified?
I said already that the Government will be considering all aspects of the project when I submit my memorandum to the Government within a matter of weeks.
The answer is that they have not decided on any rate.
Question No. 18.
The statement made two weeks ago is hypocritical.
(Interruptions.)
I will not allow the running of Question Time to pass out of my hands and into the hands of all the Deputies in the House. When I call on a Deputy he will either ask a question or he will not.
This is a very important matter for my constituency and for my colleague's constituency.
It may be and the Chair is not denying that. All the Chair is saying is that the Chair is in control of Question Time and he intends to retain that control.
Is the Minister aware that his predecessor, Deputy J. Bruton, gave a commitment last August to a public delegation he met in the Department of Energy that a decision would be made in 1983? Can he now tell us exactly when a decision will be made, whether it will be in one month, three months or six months? Can the Minister indicate clearly when a decision will be made?
I am aware that my predecessor met a deputation from Counties Roscommon and Galway during the last few months. In relation to the actual decision, I have said that I will be bringing the matter before the Government as quickly as possible and we will have a decision within a matter — I do not like to give a specific time — of months.
(Interruptions.)