Dáil Éireann debate -
Wednesday, 4 Feb 1998

Vol. 486 No. 4

Adjournment Debate. - Ferbane (Offaly) Power Station.

Mr. Flanagan

I am pleased, a Leas Cheann-Comhairle, that you have facilitated the debate this evening and that the Minister for Public Enterprise is present to reply. She has an interest in the matter as she hails from an adjoining constituency to mine. I hope I do not have to impress upon her the importance of the power generating station at Ferbane in County Offaly to my constituency and the midlands.

The Minister is aware of the importance of the twin public enterprises of Bord na Móna and the ESB for generations to the area. A total of 155 full time workers are employed at the power station. They are closely associated with 200 Bord na Móna workers and their families in the adjoining bogs, particularly at Boora in west Offaly and a number of seasonal workers whose families are dependent upon the efficient working of the power station to facilitate the generation of electricity. It is important in the context of Bord na Móna and the ESB which have represented the lifeblood of the midlands since the early part of the century.

It was with great satisfaction, therefore, that almost 11 months ago it was announced by the Minister's predecessor, Deputy Dukes, and the ESB amid great fanfare in west Offaly that the sum of £11 million was being made available for the refurbishment of Ferbane which would allow for the revitalisation of unit 4 of the power station. I regret progress on the matter since then has been less than the people of my constituency and the midlands would like.

The station, up and running with the money spent, would allow for the harvesting of 300,000 tonnes of milled peat in the immediate area per year and would consequently ensure the existence of the station operating at full steam into the next century for a period of between 15 and 20 years. There is widespread concern in the area at the lack of progress on the matter. I accept the discussions, negotiations and the preparatory works are detailed and complex and that the ESB had to comply with EU regulations as far as procurement and tendering was concerned. Progress has been unduly slow and we are now reaching a critical stage where the patience of workers and their families is rapidly running out.

The Minister will be aware of the delicate negotiations in the cost and competitiveness review by the ESB where much sacrifice was made by workers in the context of reaching an agreement on rationalisation. It was my understanding that as soon as the agreement was reached, the necessary funds would be made available for the refurbishment works.

Has there been an increase in the overall cost having regard to the time lapse? I remind the Minister to look at the record of the ESB in recent times. Only last week there was a fire at Ferbane's sister generating station in Rhode. The plant, if not closed down completely, is working at far less than capacity and this has raised concern among the workforce and local people. An indication of how these stations have been neglected over the years is that there has been very little in terms of investment since they were built in the 1940s and 1950s.

I also remind her that in my constituency in Portarlington not only has the generating station been closed down, it was demolished and razed from the landscape last year by the ESB. There needs to be an injection of funding and a significant investment in the locality to ensure the future viability of the ESB and its very good and long standing relationship with Bord na Móna.

I urge the Minister to use her good offices to ensure there are no more delays in the matter. Unemployment in Laois-Offaly is higher than the national average and the Celtic tiger is very much an endangered species in the midlands. The community has for generations been almost exclusively reliant upon these companies. It is unacceptable that £11 million was made available almost 13 months ago and that nothing has happened since to make that investment a reality.

Mrs. O'Rourke

The Celtic tiger is hard to track down anywhere. Nobody seems to able to get a look at it.

Mr. Flanagan

According to the Minister for Finance and the Taoiseach, it is around somewhere.

Mrs. O'Rourke

I thank the Deputy for raising the matter. Ferbane power station was the first electricity generation station fuelled by milled peat to be built in Ireland. It was commissioned in 1957 and, with the four other peat stations which were subsequently built, continues to have an important role to play in Ireland's indigenous energy policy.

The station is critical to the economic life of the west Offaly region. Of course, I am interested in it, apart from my current position, because it is near me and many of the workers in Ferbane live in my constituency. Over the past 40 years it has been the source of valuable employment to the local community, not only in the station itself but also on the bogs at Boora which supply it.

ESB workers in Ferbane and Bord na Móna workers in Boora are to be complimented on taking the initiative on the future of the station. There was a plentiful reserve of peat in the Boora group of bogs for many years to come, but they recognised that Ferbane station was rapidly nearing the end of its operational life unless early action was taken.

They highlighted the need for action to ensure the continuation of electricity generation from peat in Ferbane. Their constructive interest and foresight led directly to the feasibility study into the future of Ferbane and, in turn, to the decision now to proceed with the major refurbishment of unit 4. Since the announcement of the refurbishment project 12 months ago, the ESB, late last year, completed the tendering process for the procurement of works and equipment, in accordance with EU requirements. The Deputy referred to that matter. The process into which the ESB had to enter is well known.

Detailed discussions between officials of my Department and ESB personnel on the recovery by the company of the cost involved in the investment have recently been successfully completed. As part of the cost and competitiveness review, detailed arrangements were agreed between management and unions on staffing and work practices. I understand final discussions are now taking place between the ESB unions and management on implementation of the agreed cost and competitive review arrangements for Ferbane. Those arrangements are pivotal to the future of the ESB. It has assured me that, subject to the successful conclusion of the discussions with the unions, the refurbishment of Ferbane will get under way quickly and will be completed during 1999.

Deputy Flanagan asked if the price had increased. While I should say it has not, extra money spent will be good for the area. The refurbishment work will cost in excess of £15 million, a considerable amount of investment in that important station. I intend to keep a watch on how matters develop there. The tendering process for the procurement of works and equipment was in line with EU obligations and was completed only at the end of last year. Advertisements had to be placed in various journals and people had to be invited to submit tenders. The conclusion of the detailed negotiations formulated within the cost and competitive review will proceed. I agree with the views of Deputies from the region. Members of all parties are interested in the matter.

Mr. Flanagan

Will the Minister be around to open it?

Mrs. O'Rourke

I intend to be, but that matter is in the hands of the Taoiseach.

Mr. Sheehan

The Minister must have located the Celtic tiger.

Mrs. O'Rourke

Is the Deputy referring to the £15 million? He pounced on me tonight before I came into the House.

I intend to keep a close watch on developments at the station. The Deputy also referred to Rhode, which I hope to visit shortly. The fire at that station last week is regrettable. I have been assured that employment will not be affected and it will be soon back in business. I merely refer to that because the matter was raised during the debate.

I am pleased to reply to the debate. I do not miss an opportunity to reply to an Adjournment matter. They are one of the most important aspects of democracy. When I was in Opposition it upset me greatly if the Minister responsible did not turn up to answer my questions. I thank the Deputy for raising the matter.