Vol. 451 No. 3
39 Kathleen Lynch asked the Minister for Transport, Energy and Communications the proposals if any, he has to protect the status of the peat industry in Ireland in view of the fact that the European Commission is studying the particular concerns of the Irish market in the context of energy market liberalisation; and if he will make a statement on the matter. [6491/95]
The continued use of peat for electricity generation is a vital element in our national emergy policy particularly for security of supply purposes. Peat and natural gas remain our only indigenous sources of fuel and, with the projected decline in our natural gas reserves, peat could well be the only source of indigenous fuel by the turn of the century. The importance of peat, therefore, from a security of supply point of view, cannot be understated.
My commitment to the continuation of the peat industry in this country is evidenced by my initiatives in pursuing, as a personal priority. EU support for the proposal for the construction of a new 120MW peat fired power station. This station is crucial to the future viability of Bord na Móna. Bord na Móna estimate that it requires minimum sales of 3 million tonnes of milled peat to the ESB to achieve viability over the coming years. The new station will have an important role in this regard in that it will be designed to take one million tonnes of milled peat per annum.
My meeting earlier this week with Commissioner Wulf-Mathies in Brussels changes decisively the prospects for an early favourable outcome to the Commission's assessment. I am also in discussions with my colleague, the Minister for Finance, in relation to the financial structure of Bord na Móna and I expect shortly to be in a position to put forward proposals to Government on this matter.
In relation to the draft directive on the liberalisation of the EU electricity market, my Department has made our position on peat very clear to the other member states and I am confident that our views will be accommodated in the final directive.
