Dáil Éireann debate -
Thursday, 12 Nov 1998

Vol. 496 No. 5

Written Answers. - Peat Development.

Paul McGrath

Question:

57 Mr. McGrath asked the Minister for Public Enterprise if she has received a request for her intervention to enable a peat development company purchase unused bog owned by Bord na Móna at Coolnagun, County Westmeath; if her attention has been drawn to the fact that this proposal could bring many badly needed jobs to this area of north Westmeath; if her Department has evaluated the proposals submitted to her; and if she will make a statement on the matter. [23322/98]

Minister for Public Enterprise (Mrs. O'Rourke)

I have received a number of overtures in recent months to persuade Bord na Móna to agree to the long-term lease of a minimum of 5,000 acres of peatland around the Coole area for development by a competitor of Bord na Móna's horticultural peat business. The latest such representation was made to me on 3 November.

Bord na Móna was established to develop the peat resources of Ireland. The company's activities now include: the supply of milled peat for electricity generation, the production of moss peat for the domestic and international horticulture market, the use of peat for the production of briquettes, and the environmental application of peat for waste water and odour treatments.

The company has long-term contractual obligations to supply existing ESB peat-burning generating stations and the new 120MW power plant to be built at Edenderry. It must maintain sufficient reserves of peat to meet these existing and future obligations. The company employs over 1,800 permanent and 600 seasonal staff in Ireland, mainly in the midlands. Over 60 people, 48 of whom are permanent, are employed in Bord na Móna's activities in the Ballivor/Coolnagun area.

The bad weather of the past two years has had a serious impact on the ability of all peat producers, including Bord na Móna, to meet their sales commitments. In order to ensure that existing contractual arrangements can be met, the company has been obliged to notify existing customers in Europe that it is currently unable to supply their increased requirements for horticultural peat this year. Bord na Móna has built its reputation in the horticulture industry on top quality sphagnum peat and it obviously intends to maintain that standard. The maintenance of those standards requires long-term planning of production and harvesting.

Many of the bogs that have been developed over the years for horticulture have now been exhausted for this grade of peat and their usage has switched to fuel. Many of the existing horticulture bogs are equally now close to the stage where their future use will be for fuel production. Bord na Móna therefore will require the top quality horticulture bogs in its ownership, such as those referred to in the question, for future production. The company envisages that the bogs referred to will be in production and the moss peat processed in Ireland within the next few years.

Bord na Móna's horticultural business is in competition with companies both here and in Europe. The horticultural business in Europe operates in conditions of intense competition. Aside from the considerations set out, the company can see no obvious commercial rationale for making any of its bogs or peat available to a competitor of its horticulture business.