I move:
That Seanad Éireann debate the National Energy Policy.
I welcome the Minister for Energy to the House. This is an important debate in so far as it is opportune that energy and energy policy should be debated and possibly changed to suit the nineties and thereafter.
This morning on the Order of Business some Senators indicated that they were confused by the motion. It is a broad and complex motion and during the debate people will identify areas where they consider change and further developments should take place. I am not versed in all areas of energy and I presume the same applies to other Senators, but we all have our own views on certain aspects of energy policy.
Electricity, on which I intend to concentrate, is generated from imported coal and natural resources such as water, gas and peat. Peat production appears to be under the greatest threat and that is regrettable because there is still a great future for the peat industry here. It can either survive or go under but if it is to survive and be viable this will have serious consequences for employment and development in the industry.
Over the past number of years more than 2,000 jobs were shed in Bord na Móna to keep the company commercially viable and to keep their head above water. Semi-State bodies should be expected to operate on a viable basis but we must look at Bord na Móna in a different light. Bord na Móna were originally set up to develop our bogs and their importance became apparent in the seventies when there was a substantial increase in oil prices. At that time Bord na Móna were asked to expand and develop their outlets, but they did not do so voluntarily. Governments and Ministers prompted, pushed and cajoled them and as a result of their expansion operations they are now in debt to the tune of approximately £200 million. We are now telling them they must solve all their own problems and not ask the Government for money. They have been told to live within their means and to survive on an economic basis.
As I already outlined, the only avenue open to Bord na Móna was rationalisation and that meant job losses and the consequences of that rationalisation have been serious for rural Ireland, particularly the midlands which will be decimated if Bord na Móna continue to implement their rationalisation policy.
I am asking for a review of that policy. The Government should examine ways Bord na Móna can develop rather than merely survive on an economic basis. The potential of Bord na Móna should be considered and Government involvement in the finances of the company should not be excluded. The IDA might be better off creating employment opportunities in Bord na Móna rather than trying to attract foreign companies here. If the most recent Bord na Móna proposal to shed a further 600 jobs in the midlands is accepted I fear for peat production and the families in that area. A total of 2,000 people have lost their jobs in the past four years and another 600 are to go now. Of course, Bord na Móna will be in a sound financial position in a number of years but many jobs will have been lost. They will be able to balance their books in the year 2000 because they will have a staff of 200 compared with 4,000 when the company was established.
I worry when I hear of people being slapped on the back for doing a good job in semi-State bodies. The chairman of Bord Telecom was praised for the way he turned round the finances of the company, but what about the human side? We must consider the 2,500 or 3,000 jobs that were lost achieving this. In my view, Bord na Móna should get Government assistance in the form of equity, subsidies from the IDA, share capital, or elsewhere. The company should not be allowed to close especially in view of the employment consequences of such closure for the midland region.
In my area of south Roscommon and east Galway £30 million was spent over the past number of years on development and now we are informed by Bord na Móna that they want to close the gate on that development with a loss of jobs for the remaining 32 employees. Surely that is not in the best interests of the area. This should not be allowed when a company — particularly a semi-State company like Bord na Móna — acquire 15,000 acres of bog and receive the support of the people in the community.
Sixty full-time jobs in Gowla Farm, a subsidiary of the Sugar Company, were lost, the people were made redundant, land was handed over to Bord na Móna on the basis that they would create three or four times as many jobs; and 600 acres of forest, some of it ten or 12 years old, were bulldozed into the bog to accommodate Bord na Móna. Now, ten years later, 60 jobs are lost, Bord na Móna want to walk away from 15,000 acres of prime peat land, 600 acres of forest and the £30 million spent on development because they must balance their books.
That cannot be in the interests of this country. Should Bord na Móna continue to be involved in our energy policy? Can we exclude Bord na Móna from life of the midlands when we are trying to attract foreign companies to set up here, when we are forming committees and forums to create jobs and, at the same time, we are allowing one of our finest semi-State bodies to sink or swim at the expense of the people in the midlands.
I do not agree with that. Bord na Móna should not pull out of Ballyforan at the expense of 32 jobs, for two reasons: first, the massive investment in the area to date and the promises and commitments made to the people there, and, second, because of the recommendations of the report on the whole Derrynafadda area. To "close the gate" while those recommendations are being considered does not make sense. Bord na Móna say they will not harvest peat in Ballyforan because it costs £3 a tonne extra to transport it by road to Shannonbridge or Lanesborough. I believed them for some time but recently I discovered they are transporting more peat by road from other areas and that they have bought new lorries for that purpose. Why is it economic to transport peat by lorry in one county and uneconomic to do so in another? I understand the difference in the journeys is approximately two miles.
Of course, I could be cynical and say Bord na Móna set up in Ballyforan, made a number of promises, got the bog, had the forestries destroyed and when they had it all legally in their name walked away and closed the gate. That is what a colonial power would do and if that is the case it is dispicable. I would not be that cynical but that is what is being said.
The task force report recommended that the Ballyforan factory be allowed harvest their 50,000 or 60,000 tonnes of peat this year and transport it to Shannonbridge and Lanesborough. That is not asking too much as far as the people of east Galway and south Roscommon are concerned. In fact, it is the least that could be done for those people who gave such commitment to a semi-State body and to the Government, who supported the project at that time.
When Bord na Móna commenced operations there in the mid-seventies a power station was proposed but that was killed off in 1976. A briquette factory was closed in 1983 and this time they have gone for the jugular. The people of that community, who sold their land for as little as £20 per acre should not be treated in this way. If Bord na Móna are not prepared to continue operating for the next 12 months, while the recommendations of the task force are being considered, the Minister should consider the payment of a subsidy for transporting 100,000 to 150,000 tonnes of peat from the Derrynafadda group of bogs to Shannonbridge. In this way the jobs of the 32 qualified men who range in age from 26 to 38 years, would be maintained. We cannot afford to lose people with those skills. If the IDA were to set up a similar project elsewhere it would cost between £5 million and £10 million and we would clap ourselves on the back for creating employment. We should use the opportunity to develop that industry.
We have not investigated fully the potential of harvesting and burning peat to generate electricity. This has not been discussed at European level. At present, £100 million is being spent on a gas line from this country to mainland Britain. How much money has been given to Bord na Móna over the years and what debate has taken place in the European Parliament, the Commission or in the Council of Ministers regarding Bord na Móna? What moneys have come to the country to support native industries, such as peat harvesting by Bord na Móna? The RECHAR programme was introduced to deal with the declining coal industry in England and Germany. Up to 6,000 people were employed in the peat industry here and 2,000 employees have been laid off over the past four years. A European programme should be introduced to deal with the peat industry here.
Are we using our peat to the best advantage? Is the burning of peat for generating electricity useful and economic? I understand approximately 55 per cent of the heat from the burning of peat for generating electricity goes into the atmosphere or the river beside the power station. That is an extraordinary waste of heat. In other countries they use this heat for ancillary industries. We should, through the European Commission, set up a pilot project to examine this new process of combined power and heat. In some countries horticulture producers use this heat. Power stations also supply heating to industrial estates, domestic dwellings and fish farms but we have not fully investigated those possibilities here. I understand some feeble attempt was made in Lanesborough regarding that but it is not in use now; gas is being used at that station. We have not investigated or experimented with that process to the extent they have elsewhere, particularly in Europe and Canada.
The peat harvesting operations of Bord na Móna should not be discontinued. It is time for a change in attitude and policy regarding Bord na Móna. If we continue our present policies in relation to peat harvesting Bord na Móna will be a figment of the imagination in a few years' time. Bord na Móna should be given Government support in the form of equity and the IDA should be involved in developing this industry. Bord na Móna are not being used to their full potential at present. They have worked with their hands behind their back in so far as they have been at the beck and call of the Government over the years, but now they are allowed to row their own boat and sink or swim. I understand they are considering closing a major briquette factory in the midlands. I am not sure of the number of jobs involved, but it is a further nail in the coffin of the workforce of Bord na Móna.