Máirín Quill
Question:31 Miss Quill asked the Minister for Transport, Energy and Communications the current position regarding equity payments to Bord na Móna; and if he will make a statement on the matter. [23483/96]
Written Answers. - Bord na Móna Equity Payments.
On 30 May 1995, the Government gave approval, in principle, to the injection by the State of £120 million in equity into Bord na Móna in three tranches subject to the investigation of the issue of State aid with the EU Commission. The purpose of the equity is to eliminate that level of Bord na Móna's debt which is considered to be unsustainable, and, at the same time, to grant an average reduction of around £6 in 1993 prices in the price of milled peat sold to ESB.
The European Commission formally notified my Department of complaints it had received in relation to the proposal and my Department provided a detailed response, defending the proposal, in October 1995. There has been ongoing correspondence and discussions at official level since then. In October last, my predecessor raised the matter with Commissioner Van Miert — who has responsibility for the Competition Directorate of the European Commission — to impress on him the need for the Commission to come to a speedy decision.
I am satisfied that the Commission is making every effort reach a decision before Christmas. My officials and I will continue to take all steps possible to secure a favourable decision in sufficient time to enable the first tranche of equity to proceed before year end.