The main purpose of this Bill is to authorise an increase of £5,000,000 in the amount which Bord na Móna may borrow from the Central Fund or other sources for the performance of its functions. This increase will permit the board to borrow up to a maximum of £19,000,000. The Bill also removes the limit of £2,000,000 on the amount which the board may borrow from sources other than the Central Fund. Total borrowings will, of course, be limited to £19,000,000.
During the past year discussions have been taking place regarding the electricity generating capacity which will be required subsequent to the commissioning of the North Mayo station which was reinstated in the E.S.B. generation programme of last year. As a result of these discussions the E.S.B. have decided to install an additional 40 MW. at Rhode in 1964 and an additional 20 MW. at Ferbane some time prior to 1965-66. To meet the requirements of the E.S.B., Bord na Móna propose to develop new areas of bog at Boora, for the Ferbane station, and Derrygreenagh, for the Rhode station, to produce 550,000 tons of milled peat per annum. I will shortly be introducing a Bill to provide amongst other things for increased capital for the E.S.B.
Bord na Móna must also plan to supply milled peat for the proposed nitrogenous fertiliser factory.
In the course of their discussions with the E.S.B., Bord na Móna undertook to make available 350,000 tons of milled peat per annum from 1965-66 onwards in the Garryduff group of bogs which are situated on the opposite side of the Shannon from Blackwater bog, close to which the proposed nitrogenous fertiliser factory will be located. It is intended that the two bogs should be developed as one unit to supply the power-station and the fertiliser factory. When the E.S.B. erect this station, the total production of Bord na Móna will amount to 3,000,000 tons of milled peat in 1965-66, of which 2.1 million tons will be used for electricity generation, 750,000 tons for the production of briquettes in the three factories, and 150,000 tons for the nitrogenous fertiliser factory which will then be in operation, in addition to 1,000,000 tons of sod peat, of which 500,000 tons will be used for electricity generation.
In the exercise of their powers under the Turf Development Acts, Bord na Móna will, it is estimated, have borrowed a total of not less than £13,928,000 by the end of this month, of which £500,000 will have been borrowed from sources other than the Central Fund. To carry out the development programme envisaged up to 1965-66 it is estimated that Bord na Móna would require to borrow up to £22,000,000, apart from capital, estimated at £2.5 million, which they expect to obtain from their own resources. It is considered, however, that the limit of the board's borrowing powers need not be raised at this stage beyond £19,000,000 which will assure adequate capital for the board during 1959-60 and 1960-61. It is anticipated that further legislation making additional provision will be required in 1961.
The second, minor, purpose of the Bill is to remove the limitation of £2,000,000 on the amount which Bord na Móna may borrow from sources other than the Central Fund. The retention of this limitation is not necessary and, should an opportunity for borrowing other than from the Central Fund arise at any time, the board should be in a position to avail itself of it, with, of course, the consents of the Ministers for Finance and Industry and Commerce. I shall say, however, that it unlikely that the board will be able to effect such borrowing in excess of £2,000,000.
An aspect of the operations of Bord na Móna which is also deserving of mention is their production of peat moss. Sales of this commodity were £51,000 in the year ended 31st March, 1953. In the year ended 31st March, 1958, sales had risen to almost £120,000, about three-quarters of which were export sales. Last year, owing to adverse weather, production fell by about 50 per cent. The board, however, have been greatly encouraged by the steady demand for this product, and they have enlarged the Kilberry factory and are at present erecting a second factory based on allen Bog. The peat moss bog in Coolnamona, Laois, has been acquired by Bord na Móna and a third peat moss factory based on that bog is intended. I recommend the Bill for the approval of the House.