Michael Ahern
Question:24 Mr. M. Ahern asked the Minister for Transport, Energy and Communications if he intends to remove the debt of Bord na Móna as reported in the media; and if he will make a statement on the matter. [6520/95]
Written Answers. - Bord na Móna Debt.
In recent years Bord na Móna has undergone a major rationalisation process which has resulted in the workforce being reduced from 4,800 in 1987 to approximately 2,270 currently. This was accomplished largely without serious industrial relations problems. However, despite the considerable improvements in bringing its operations back into profit, the board continues to be in a serious financial situation because of its very high level of debt.
At the end of its last financial year, 31 March, 1994, Bord na Móna had total net borrowings of £172 million all of it guaranteed by the State, and a negative net worth of £72.4 million. The board engaged financial consultants to look at the financial position of the company. The consultants reported in 1993 and identified £126 million of the debt as hindering the company's intention of getting its core milled peat business move towards generating electricity at world energy prices. I am currently in discussions with the Minister for Finance in relation to the financial structure of Bord na Móna and I will shortly be in a position to put forward proposals to Government.