Bernard J. Durkan
Question:94 Mr. Durkan asked the Minister for Transport, Energy and Communications the plans, if any, he has for the expansion of the peat industry; and if he will make a statement on the matter.
Written Answers. - Peat Industry.
The Government regards peat as an important element in Ireland's energy mix and under the National Development Plan, the Government is committed to continued use of peat for electricity generation provided the costs are not excessive. Bord na Móna has recently submitted to me a proposal for a new peat-fired electricity generation station which envisages the utilisation of an additional 1 million tonnes of peat per annum. It is proposed to provide Structural Funds aid for this project.
Bord na Móna is also looking to expand output in their Horticultural and Environmental Products Divisions, particularly in overseas markets. My objective in relation to Bord na Móna is to see the organisation develop as a solidly structured company capable of continuing to make a valuable contribution to Ireland's energy requirements and sustaining viable employment into the future.
The future development of Bord na Móna is inhibited by its financial situation with current borrowings of around £180 million. The immediate priority for the company, therefore, is to restructure this debt in a realistic manner and the Board has recently submitted proposals to me in this regard which are at present under consideration.
For its part, the management and workforce in Bord na Móna has made enormous progress in recent years in reducing costs and improving productivity. This is borne out by the fact that operating profits per employee have risen by a factor of 4 over the past four years.
I am confident that the present stategy of Bord na Móna in concentrating on the control of costs and undertaking investments that provide a realistic rate of return will reinforce the achievements made to date and allow the continued use of peat for the national benefit.