asked the Minister for Energy the reason support under the Valoren programme has been confined to State-sponsored companies; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Valoren Programme.
9.
The aim in selecting projects for inclusion in Ireland's Intervention Programme under the Council Regulation 3301/86 (Valoren) was to take full advantage of the £19.3 million grant aid allocation to this country under this scheme. The Government decided, that this objective could best be achieved by channelling the available funds into public sector areas of activity. Implementation of the programme, which was approved by the EC Commission in November 1987, is now well underway in upwards of 13 counties in all four provinces with a direct employment effect of about 600 jobs.
In view of the success of the private scheme under the Turf Development Act, 1981, I should like to ask the Minister to consider giving some of this special allocation under the Valoren scheme to private development. In view of the success of that scheme — 1,192 schemes were approved nationally under the scheme in 1981 and 115 schemes were approved in Kerry, amounting to grants of £700,000 — would the Minister consider extending Valoren aid to the private sector and making application for EC funding for the private sector under the scheme?
I have no objection in principle to Valoren funds or other EC funds being diverted to support private sector development in peat activities. In relation to the decision which was taken on the current Valoren fund, this decision was based on the fact that it would be the best way to have the maximum drawdown on EC funds. I think the Deputy would admit, in the light of experience, the developments which have taken place as a result of that programme and the additional jobs which have been created, that it was a very successful effort.
With regard to the Deputy's question on private fund development, as the Deputy knows, that scheme has been terminated. This scheme was very successful — I do not have the exact figures off the top of my head — and brought about a very significant increase in sod peat development throughout the country and could be largely instrumental in having a number of changes made in the way small and medium sized bogs are operated in the future. It is not possible to find resources at present to give further support to that development.
Would the Minister not agree that there is considerable scope for the development of private hydro — a capacity of 38 megawatts has been identified as capable of development — and that if these had got some grant support under the scheme we would have been in a position to save an estimated £3 million per annum in our energy bill by the development of these sources?
I do not think the economics indicated by the Deputy in that type of proposal are properly assessed, as he would tend to lead this House to believe. As the Deputy knows, part of the Valoren grant was dedicated to the ESB for this purpose and a number of projects are in the process of going ahead. There is a limit to the resources available and I do not think there is any question in anybody's mind that the way in which these funds were used by the ESB and Bord na Móna both created and sustained employment.
Is it not the case——
A final question please, Deputy Bruton.
——that the assessment to which the Minister referred was carried out by an independent body under the aegis of the Government? I am not quoting figures of my own. All I am suggesting is that a small part of the budget should have been allocated to activities outside of the State sector which already command massive resources.
As I indicated in my reply to Deputy Deenihan, I have no objection in principle to the use of these funds in the general private sector but we are dealing with a decision which has been taken.
The Minister was asked why he or his predecessor took the decision; we are trying to tease out the reasons for this.
Let us hear the Minister's reply without interruption. Question No. 10.