Dáil Éireann debate -
Thursday, 14 Oct 1993

Vol. 434 No. 6

Adjournment Debate. - Allenwood (Kildare) Power Station.

Mr. Dukes

I am grateful to you, Sir, for giving me time to raise this matter on the Adjournment. Since 5 May 1993, the people who work in the power station at Allenwood and the people who work in Bord na Móna to supply it with peat have been in limbo. On that date, the board of the ESB recommended the closure of the power station and forwarded its report to the Department of Transport, Energy and Communications. That evening in this House, the Minister of State, Deputy Noel Treacy, informed us that the Department's chief technical adviser was examining the assessment of the situation in the power station "as a matter of priority". The latest information I have been able to get — five months later — is that nothing has changed and no decision has been made.

I am informed the current position in the power station is that the machinery has been stripped down and a certain amount of overhaul work has been completed. The staff are anxious to complete the overhaul — a process that I understand will take 16 weeks — but they cannot go ahead because they have not had the authorisation to do so. Meanwhile, out on the bog there are ample supplies of fuel for the power station but it appears that Bord na Móna management has decided that the work of covering the peat with polythene, which would normally take place this month, will not go ahead unless and until they receive a firm undertaking that the ESB will purchase the fuel for the power station.

On Monday last, I read the statement the Taoiseach made at the launch of the so-called National Development Plan. In a list of strategic investments to which the Government will direct EC aid, a new peat-fired generating station is included. I thought at last a decision had been made, so I looked for more information in the National Development Plan 1994-1999. On page 111 under the heading “Peat”, I found the following:

The Government is committed to continued use of peat for electricity generation provided that the costs are not excessive and Bord na Móna is at present completing a feasibility study into a new peat-fired power station using the most up-to-date technology which will be 50 per cent more efficient, on average, than existing peat-fired stations.

Whereas the Taoiseach had apparently announced a firm decision that aid was going to a new peat-fired generating station, in the National Development Plan they speak conditionally of a policy and Bord na Móna completing a feasibility study and not of a decision. I can only conclude, Sir, that the Taoiseach's statement was deliberately intended to deceive. It shows yet again, Sir, that this Government——

An Ceann Comhairle

I ask the Deputy to reconsider the remark "deliberately intended to deceive".

Mr. Dukes

It was deliberately intended to create an impression that is not true.

An Ceann Comhairle

We are splitting words, Deputy. I do not think the Deputy should attribute to a Minister or any Member of this House that he deliberately sought to mislead——

Mr. Dukes

I would like the Taoiseach to tell me that the deception was inadvertent but there is a world of difference between "we will direct EC aid to strategic investments, including a new peat-fired generating station" and the wording in the National Development Plan which states "Bord na Móna is at present completing a feasibility study". The people in Allenwood will see the difference and it does not matter which term the Chair may allow me to use in the House. The people of Allenwood will not be fooled. The difference between those two statements shows yet again that the Government is prepared to play games with people's jobs and trample on their feelings in order to get a good hype for its image.

The National Development Plan contains nothing concrete for the workers in Allenwood power station or for the workers on the bogs supplying peat to it, for the families and communities in north Kildare and east Offaly. The Government is attempting to give an impression to those people that is very different from what it is doing. That impression is being cultivated by the Minister for Transport, Energy and Communications, Deputy Cowen, and by the Minister of State, Deputy Stagg.

If I am wrong about this, will the Minister state clearly and unequivocally that the Allenwood power station will be overhauled and that it will be kept in operation unless and until a replacement power station is brought into operation in the area? Any failure to give that kind of unambiguous commitment this evening will be read by the people of the area for what it is and what the Chair refused to allow me to say in this House.

An Ceann Comhairle

I merely wished not to attribute a lie to any Member of the House.

Mr. Dukes

I have not called it a lie, it is straightforward deception.

An Ceann Comhairle

That is quite close to it.

Mr. Dukes

It is a matter for the Government.

An Ceann Comhairle

It is a matter for the Chair to ensure that our debate is on a parliamentary level.

Minister for Transport, Energy and Communications (Mr. Cowen)

Allenwood power station was commissioned in 1952, and at that time it was expected that its useful life would be approximately 25 years. The power station has now been in operation for 41 years, which in itself is a testament to those who built and maintained the station. The Allenwood station was scheduled for closure in 1984-85, and again in 1990, when a further three-year extension was decided. The operating life of the station has therefore already been extended by 15 years.

In view of the age of the station, the ESB decided that a detailed examination of the plant should be carried out, to assess its capability for future operation. This necessitated closure of the station in June 1992, to allow a major technical and safety evaluation to be conducted. In this exercise, the ESB retained external consultants to advise them on the condition of the plant.

Earlier this year, the ESB submitted a report to my Department, dealing with the technical evaluation, and the assessment of the costs associated with the refurbishment and continued operation of the station. As has been previously made known to the House, this report recommends the closure of Allenwood power station. At a time when emphasis is placed on efficiency, it should be borne in mind that the station converts only 22 per cent of the peat energy into electricity, compared with 38 per cent for the most modern peat power stations. The cost of producing power at Allenwood is 9p per unit. This is much higher than the ESB's average selling price of 6.3 per unit.

The House is well aware that my objective is to provide the most cost-effective and reliable supply of electricity throughout the country. Strong economic growth, identified in the National Development Plan, is needed to bring Ireland's economic performance closer to the European average. This can only be achieved if all parts of the economy operate as efficiently as possible.

I have mentioned before that the energy equation is no different in terms of supply and demand from other products. While advances are being made in demand side management by encouraging customers to use electricity efficiently, the generation side of the equation must not be neglected. To achieve a competitive supply of electricity, production costs must be minimised. This is achieved by choosing the correct mix of fuels, with due regard to their price, security of supply and, of course, their environmental impact.

Having said that, I appreciate the need to take account of the impact of plant closures on local communities. In this context I stress the Government's continuing commitment to the efficient use of peat as an indigenous energy source, and, in this regard, I would draw the attention of the House to the inclusion in the National Development Plan of the proposed new peat-fired power station.

Mr. Dukes

Is it a power station or a feasibility study?

An Ceann Comhairle

Let us hear the Minister without interruption.

Mr. Cowen

The feasibility study is completed and anybody acquainted with the position should know that, but Deputy Dukes obviously is not.

Mr. Dukes

What about the plan the Minister signed?

Mr. Cowen

As I indicated previously to the House, I consider that a detailed evaluation of the ESB report is necessary before a final decision is taken on the future of the station. This examination is still under way but the final decision will be taken as soon as possible, taking into account all the issues involved.

Mr. Durkan

The Minister will be worn out considering it.