Richard Bruton
Question:7 Mr. R. Bruton asked the Minister for Energy whether he has examined the financial situation of Bord na Móna; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Bord na Móna Finances.
Jim Mitchell
Question:77 Mr. J. Mitchell asked the Minister for Energy whether he has examined the financial situation of Bord na Móna; and if he will make a statement on the matter.
I propose to take Priority Question No. 7 and Question No. 77 together.
Bord na Móna are in a state of transition with planned reorganisation designed to address their financial situation. This is naturally reflected in the board's 1988-1989 accounts which were formally presented to my Department on 5 February 1990. Now that I have received these accounts and the necessary back-up information, I am examining the results for the year and the financial consequences for the board as a matter of urgency. It is, however, still too early to give any definite indication of my thinking on the matter.
Would the Minister agree that the company are technically not in a position to continue trading on the grounds of recent losses and their existing overheads?
I do not accept that.
A Cheann Comhairle——
A very brief question. There are other questions to be disposed of.
This was submitted as a Priority Question.
That is so, Deptuty. I have admonished you as to how we proceed to dispose of these five questions. You are not allowed to arrogate time to yourself. A brief question.
Would the Minister agree that unless there is a restructuring of the capital base of this company involving some injection of funds to the company they will be in grave difficulties in regard to availing of any of the opportunities? Will he agree that any European country with a solid fuel industry has engaged in restructing its solid fuel industry in the light of changed energy requirements?
The report has been before me only since 5 February.
The results were known long before that.
I did not have the full report, and all that was required and requested by my Department, until 5 February. It is still too early to give any definite indication of my thinking in regard to Bord na Móna's financial difficulties.
I am not yet convinced that the capital base of the company is a critical factor in the company's difficulties or that in the present difficult national economic circumstances an equity injection by the State is the best means of achieving any restructuring considered necessary. It must be remembered that the Government would have to borrow any equity which would be injected into the company at broadly similar interest rates to those currently applying to Bord na Móna. I would ask Deputies to bear with it. This matter is receiving priority attention and appropriate decisions will be made.