I am grateful to you for allowing me to raise this question. It is almost a year since I asked the Government about the status of this project and I have had no good news since. I note, as the Minister for Transport, Energy and Communications, Deputy Cowen, is not in the House that I cannot expect any more good news.
Adjournment Debate. - New Peat Fired Power Station.
That is presumption.
That is no disrespect to the Minister of State whose assiduity in taking what one might call the latrine duty on these issues is to be complimented and I hope it gets him promotion in the not too distant future.
I am very grateful.
I asked the Minister on 18 May 1994 during the debate on the Estimate for his Department what the prospects were for the proposed new power station. At that time the Minister informed me he had received the feasibility study on the project. He also told me that discussions with the EU Commission on funding the project in the context of the operational programme for energy were in course and expected to conclude by the end of June.
Since then the new Community Support Framework has been published and confirms a shortfall of £2 billion in the Government's investment projects. Some £2 billion worth of projects which were included in the so-called national plan will have to be cancelled or deferred. That has given rise to a great deal of trepidation in many areas of the country, not least north Kilare and east Offaly — the area in which it was proposed to site the new power station. That area has been badly affected in recent years by a number of events which reduced employment and by the failure of the policies of the Government to convert growth into jobs. Employment on the bogs has sharply reduced as the Minister of State is aware. The power station at Allenwood has been closed and there are fears about employment in other peat burning stations in the midlands area.
The other enterprise in the region, agriculture, is hedged with so many restrictions that it is almost impossible to do anything new. The prospects for entire communities in that area are bleak, to say the least. I had an example of it last Saturday where I was told that in the town of Rathangan alone, a small town on the edge of that area, 13 families have sons or daughters in their late teens or early twenties in the cities of Sydney and Perth. High emigration is now becoming endemic and is the norm rather than the exception right across the midland region.
Against that background I and the people of north Kildare and east Offaly want to know the status of this peat fired power station project. Specifically, can the Minister tell me whether the project is now definitively included in the operational programme for energy and, if not, why? If the project is included what European Union funding is allocated to it and what Exchequer funding goes with it? What steps, if any, is the Minister taking to secure partners for the venture because it was proposed that this would be a joint venture project? In the event that the project is included in the programme what arrangements are contemplated for the supply of peat to the power station? I may be anticipating, Sir, but I have a fairly shrewd idea of what the Minister's reply will be. In the absence of clear and specific answers to those questions I will be forced to the conclusion that the Government has something to hide and that that something can only be bad news for the people of north Kildare and east Offaly.
Is cúis áthais dom an freagra a thabhairt don Teachta Dukes. Bhí mé anseo cúpla uair leis an Teachta agus bíonn an-áthas i gcónaí orm teacht ar ais chun éisteacht lena óráidí.
I am glad of the opportunity to inform the House of the latest developments in relation to the proposal to construct a new peat fired power station. Irish energy policy has three primary objectives: the supply of a choice of fuels, as efficiently as possible, at internationally competitive prices, taking account of supply security, socioeconomic and environmental considerations; the consumption of this energy, as efficiently as possible and the production of as much, as is economically possible of national energy requirements from indigenous sources.
The use of peat for power generation fits into this policy on all fronts, for three main reasons.
In the absence of a discovery of new reserves of natural gas, peat will be Ireland's only significant source of indigenous energy. The role of peat in providing a secure source of energy will, therefore, become more vital, even though its contribution to our overall needs is relatively small. By using the latest technology available and taking advantage of the most modern and efficient methods available for harvesting, peat will be a competitive source of energy, when compared with other fuels, for the foreseeable future.
When they were commissioned, the existing peat stations had efficiencies comparable with the alternatives then available and contained wider benefits in terms of supply security, employment and infrastructural support in rural areas. These benefits remain valid today.
The fact that efficiencies have advanced in newer alternative power stations provide an incentive to invest in modern peat burning technology. Not to do so would be tantamount to ignoring a national resource that should be harnessed for the benefit of the nation.
Against this background, Board na Móna prepared a feasibility study for the construction of the new station, which would utilise peat resources, that would otherwise not be used to full advantage. In this connection, I pay tribute to Bord na Móna management and workforce, for its initiative in preparing the proposal. The enterprising nature of the company is demonstrated by the manner in which the initial study has been progressed.
The study demonstrated the economic feasibility of the project and the Government has demonstrated its support for the peat industry by including the project in the National Development Plan. As part of its consideration of our application for Structural Fund assistance, the EU Commission, as is normal for major projects of this kind, requested that an independent socioeconomic cost benefit analysis be carried out. That study has now been completed and the Commission's formal confirmation of funding support is expected shortly.
The main features of the proposed station will be a fuel requirement of 1 million tonnes of peat, per annum an improved conversion efficiency of 36.7 per cent compared to the average of 25.5 per cent in the existing peat stations; the direct employment on a permanent basis, of approximately 90 in the station; the employment of 450 at peak, during construction, involving more than 700 man years in total, with bog preparation work, creating a further 1,120 man years employment; the support of 250 permanent and 250 seasonal jobs, in peat extraction, when fully operational; and a direct income impact of £19 million during operations, the vast bulk of which, will accrue to the local economy.
I pay special tribute to my Government colleague, Deputy Cowen, for his tenacity, dedication and positive support for this project at Government, Council of Energy Ministers' meetings in Brussels and in the European Commission. I am confident this project will come onstream.
There is nothing to be gained from speculation regarding the outcome of the European Union Commission's assessment of the proposal. The proposal has been demonstrated to be economic and I am confident that European Union funding will be forthcoming and that the project will proceed as planned with the full support of the Government.