Vol. 383 No. 2
asked the Minister for Energy if he will outline Government plans for the future development of Bord na Móna; if it is intended to divide the company up into three separate trading subsidiaries; if employment levels in the company are likely to be reduced; and if he will make a statement on the matter.
14.
asked the Minister for Energy whether he has taken any initiative to develop an effective regional strategy for the midlands region in the light of the 1,250 redundancies in Bord na Móna.
20.
asked the Minister for Energy if he intends to introduce legislation in this Dáil session enabling Bord na Móna subdivide their existing activities into three operating subsidiaries.
I propose to take Questions Nos. 12, 14, and 20 together.
Given the well-known severe financial difficulties of Bord na Móna it has been clear for some time now that urgent initiatives are required to safeguard its future. In this context, I have appointed consultants to carry out an in-depth study of Bord na Móna's entire operations and I expect to have their findings by the end of March, 1989. In the light of these findings I will then be in a better position to take appropriate decisions on the board's future activities including those located in the midlands.
The board itself has been examining its structures and, while no decision has been taken on this analysis, certain measures are proceeding including a voluntary redundancy/early retirement scheme. This scheme, negotiated with the unions, has attracted many applicants.
Because peat is a finite resource, the Government, in their forestry policy, were conscious of the advantages of providing alternative employment opportunities through afforestation in those areas where peat extraction is coming to an end.
EC aid in the Valoren package is also contributing to the midlands area through the development of extra bogs, to maintain almost 500 jobs in the region which would otherwise have been lost.
For the future, the amending legislation which I introduced earlier today will enable Bord na Móna to engage not only in peat-related activities but also to diversify into other employment creating operations where it has acquired expertise. It is not the purpose of this Bill to deal with the organisation matters referred to in the questions.
Besides the submission which has been made by management and other groupings, is it the Minister's intention to have a full evaluation before any decision will be made on the question of carving up Bord na Móna?
The question of carving up Bord na Móna has not arisen except in the context of the task force report which was prepared at the behest of the chief executive, Mr. O'Connor, and his management team. The consultants are already appointed and they are looking at the operations of Bord na Móna. I expect them to report to me by the spring, at which stage the task force report together with the report of the consultants will be of benefit to the Government in arriving at decisions for the future of Bord na Móna. So that time will not be lost, I have today circulated legislation which will allow Bord na Móna to become involved in joint ventures and in areas outside their immediate remit, namely peat extraction. For example, they can become involved in engineering, horticulture and consultancy services and use their expertise as leaders in the peat extraction area where they have an international reputation.
Will the Minister make provision for retaining in public ownership the tens of thousands of cutaway bogs which will be coming on during the next few years?
Studies were carried out for almost 20 years as to what was to be done with the cutaway bogs. On coming into Government we immediately set about the use of about two-thirds of the cutaway bogs. The board have about 88,000 hectares of bogland and it is expected that about two-thirds of it will be suitable for afforestation. Already some 2,500 hectares have been handed over by Bord na Móna for forestry. That is all in public ownership.
Will the Minister clarify whether the new legislation, which I have not had the chance to see, will enable the board to establish subsidiaries? Will it be enabling legislation for the dividing up of their existing activities or will further legislation be required if that is to come to pass? Is forestry the only substitute the Minister foresees as a strategy to cushion the impact of high job losses in the midlands?
We will have an opportunity to discuss the Bill at length in the House. It is important legislation for the future of Bord na Móna and envisages the enabling power to allow sub-board groups to be established. That is not contained in the 1946 Act, as the Deputy is well aware.
There will not be a need for new legislation?
No. It is intended that about two-thirds of the cutaway bogs will be used for afforestation but there are other uses. Some cutaway bogs which have a low water table could be used for amenity purposes, vegetable growing and a variety of uses. I am open to suggestions from the board in that respect.
While welcoming the amending legislation which will give us an opportunity to put forward our very definite views on this matter, does the Minister agree that given the level of job losses involved it will be necessary for the Government to adopt an alternative strategy with regard to job creation in the midlands, quite apart from the extra jobs which might be created by Bord na Móna's joint venture operations, to ensure that the replacement of jobs will be given top Government priority at every level, including the promotional agencies?
The Deputy can be assured that we are very conscious of the impact of any voluntary job losses in the midlands area, not only on Bord na Móna itself but on the towns and the region generally. All State agencies and Ministers are making every effort. My colleague, the Minister for Industry and Commerce, is making every effort through the IDA to ensure that replacement industries are provided in the area. I believe the expertise which has been available through Bord na Móna should be maximised and for that reason I have introduced this legislation. This will enable potential spin off industries through greater involvement in horticultural and engineering projects and in the provision of consultancy services.
