Vol. 462 No. 5
29 Mr. Clohessy asked the Minister for Transport, Energy and Communications the reason for the delay in inviting tenders for the construction, ownership and operation of a proposed new peat fired electricity generating station; the exact site for the proposed location of this project in the east midlands region; and if he will make a statement on the matter. [4982/96]
32 Mr. Cowen asked the Minister for Transport, Energy and Communications the reason for the delay in progressing the new peat generating station in the midlands; and if he will make a statement on the matter. [4959/96]
I propose to take Questions Nos. 29 and 32 together.
First, I would like to put on record my total commitment to this project which is essential for the future of the peat industry. I want to assure the House that my Department is developing the necessary arrangements as quickly as possible. I am confident that the project will be completed by the end of the decade as originally planned.
This is the first time we have had a competition like this. It is an extraordinarily complex matter and an enormous volume of documentation must be prepared for the first time. For example, there must be a power purchase contract, a contract for the sale of peat and a detailed agreement describing the function of the national grid and the responsibilities of any large independent power station connected to it. In the past the ESB was responsible for all of the electricity system and purchased peat from another State company so it was never necessary to set out these details in contractual legal form.
This project is the first opportunity to bring competition into the mainstream of electricity generation in Ireland. It is absolutely essential that the arrangements I put in place have the full confidence of all bidders.
My Department has been working intensively over recent months to find a fair and transparent arrangement which would allow the ESB to bid and which will also have the confidence of other bidders. It is essential that the arrangements are not open to challenge under Irish and EU competition law. A successful challenge would almost certainly delay the project by several years and could result in the State or the ESB paying very heavy damages.
To avoid that problem I have taken detailed legal advice, as a result of which, I am taking steps this week to employ independent experts to run the competition in a totally impartial manner. This is the only course of action which will enable the competition to be completed early in 1997 in order to meet the objective of having the power station completed by the end of 1999.
As I stated previously in the House, the precise location for the station will be a matter for the developer — the winner of the competition. It will be up to the developer to decide where, within the east midlands region, the new station will be situated. In deciding where to locate it, the developer will take into consideration general site suitability, proximity of suitable peat supplies, transport and other infrastructures.
Since the Minister will be aware of the many optimistic ministerial statements of this and previous Governments on this Euro peat project, does he agree it is most disappointing, if not extraordinary, for him to elaborate on a list of excuses for the project not yet having come to fruition? I remind him that in October 1995 he stated that the procurer would be formally announced in the Euro Journal and that he hoped to decide the winner of the competition and award a contract before the end of 1996. Does the Minister accept that he gave inaccurate, misleading information to the House if the procurer is not now to have a role in assessing the tenders?
I welcome the Minister's belated announcement of the appointment of independent experts to evaluate the proposals to ensure there is absolutely no link between his involvement under the ESB umbrella, work on its design and the invitation of tenders. The ESB connection has been tenuous throughout the whole programme and this is the first occasion we have heard that the Minister and Government are resorting to an independent expert assessor. Since that appointment had been necessary from the outset, does the Minister accept that the manner in which this project has proceeded thus far has not evoked much public confidence?
I am glad the Deputy agrees with the competition procedures in this case. The project is a matter of priority for the Government, of immense importance to the midlands region and involves detailed work on the part of the ESB with substantial beneficial consequences for Bord na Móna and the peat industry in that area. The project is on target, the time scale will be met and I look forward to ensuring that——
Will the contract be awarded this year?
——with the placement of a contract, the station will be constructed by the end of 1999, the time scale originally envisaged.
From Question Time today, it is becoming obvious that the level of the Minister's inactivity throughout all semi-State companies is building up, nowhere less than on this issue. When will tenders be sought in this case, or has the Minister shut down his Department or is he still in charge of it since nothing is happening with regard to Telecom Éireann, the ESB or Aer Lingus?
The Department of Transport, Energy and Communications is still recovering from the Deputy's period of inaction there.
The Minister is full of rhetoric.
So the Minister is back in business.
But no results.
I can assure the Deputy that my Department is vibrant, active, strong and that all matters are being dealt with in a competent and efficient manner.
The Minister is just in time for the Ard Fheis.
