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Seanad Éireann debate -
Thursday, 24 Jun 1993

Vol. 137 No. 2

Adjournment Matters. - Arigna Power Station.

I thank the Leas-Chathaoirleach for allowing me to raise this important issue in the House.

As the Minister is aware, there has been a power station and coal mine in Arigna for many years. Unfortunately it has been decided by the Government that next week the Arigna power station will cease operation.

Mining began in Arigna in the 19th century. In the present century it was carried on by one mine proprietor and subsequently followed by at least two others. The Arigna miners played a crucial role in the national economy during the war years when some 350,000 tonnes of coal was taken annually to the ESB and other semi-State operations.

In 1958 the power station at Arigna was commissioned and has since performed at a high efficiency level within plant parameters. In 1989 it was the fifth most efficient power station in the ESB network, well above the efficiency level of even the Moneypoint power station. In over 30 years it has produced electricity economically with technical efficiency. In 1989 the work cost was almost £4 million, nearly £1 million less than 1988; 45.8 million units were generated and 42.3 million units were sent into the system.

An undertaking initially established for social considerations has become an efficient user of natural resources in the area. We have reached the point where a natural resource in Arigna has been used to provide 300 well paid jobs and is now to be taken from the area. The people concerned have a considerable fear of the problems ahead with respect to the future and alternative opportunities.

The loss of 300 jobs in an area such as Arigna would have the same relative impact as the loss of a major multinational enterprise employing thousands of people in a recognised industrial zone. The major difference is that the people now being put on the dole do not have alternative employment within the State. They will be forced to emigrate or to move to larger centres thus depriving businesses of the area of their spending power. This will have knock-on effects in terms of retail and other job losses.

Since the 1970s oil crisis, EC member states have sought to reduce dependence on external energy supplies through greater efficiency, diversification of sources, increased use of solid fuels and the development of renewable energy. Coal is still a major source of energy throughout the world. In other Community countries such as France, Germany and Spain a recommendation has been made to concentrate on the construction of new, small, environmentally friendly coal-fired power stations able to generate sufficient electricity for a region rather than feeding the national grid. This development should be considered for the difficulty now posed for Arigna.

Over the years a large 445 megawatt generating station was promised for Arigna and tests were carried out on the availability of suitable coal and the use of same through a fluidised bed system for the generation of electricity in the larger power station generating unit. At the time it was considered that the capital outlay was considerable, but there was no other reason for not proceeding with it. However, the people of Arigna believe that this proposal should now be developed in the area to save these jobs.

Some 60 jobs will be lost at the week-end, and this decision has been taken by the Government. Arigna power station will stop producing electricity next Friday and the socio-economic effect that this will have on the mid-Leitrim north Roscommon area will be devastating. The people who travelled from the area today came up for one last attempt to persuade the Government to allow the station to continue at Arigna. I know the Minister has been very involved in the county enterprise boards. The Culliton report, which we have all heard so much about, contained recommendations on the development of industry and the creation of jobs in this country. One of the cornerstones of the Culliton report was indigenous industry. What more indigenous industry is there in this country than the mining of coal?

Reports were produced stating that coal deposits in Arigna, County Roscommon, and Athacashel, County Leitrim can last up to 15 years. A number of proprietors of mines are willing to mine that coal and employ extra people. Over 250 jobs have been lost in the mining industry already. Some of those people have been waiting for those jobs to come back, since coal deposits are still in the area, but the Government has decided, wrongly I think, to close down the power station. It is a bad political decision for this area.

The Taoiseach took a personal interest in the proposed research and development work. He represents the area and MF Kent will be involved in the research and development of the gasification of coal. The previous Minister for Energy was given reports which show that this effort is only prolonging the life of the power station. The Government is receiving money from Europe for three years to carry out this research. This proposal is not feasible for the people who now face unemployment and life on the dole.

The Minister comes from the west; County Leitrim and that part of Roscommon have been ravaged by emigration. We need to keep jobs in the area. We have an indigenous industry and employers who are willing to keep jobs in the area, but this Government does not have the political will to allow the power station to say open. This political decision can be taken by the Taoiseach. This Government can save 60 jobs and create extra jobs in the indigenous coal-mining industry.

We must make one last effort, as public representatives for the area, to have the station kept open. My colleagues, Senator Naughten and Senator Finneran, who represent the area, are here, and also Senator Mooney, Deputy Ellis, and Deputy Doherty are present in the House. They want this station to be kept open and the mining to continue. There is cross-party unanimity that this power station should be left open, because the area faces an economic disaster if it closes. Some 60 jobs will be lost in Drumshanbo and Ballyfarnham. The people of Arigna, especially those who have been mining there for generations, who hoped that they could go back to mining, will be devastated by this decision. I make a final appeal to the Minister to allow Arigna power station to continue; we need it very badly in the area. I am not trying to raise any political hackles about this. I genuinely believe the station should be kept open as we have deposits there to last 15 years.

In 1985 the present Tánaiste, who was then Minister for Energy, gave a categorical assurance to Members of the Dáil that Arigna power station would not be closed until all the deposits of coal in the area were exhausted. That decision was altered by the previous Government, and this Government is continuing where it left off. This is a political decision which can only be changed by Government. I hope the Minister will announce this evening that Arigna power station will be kept open.

As an Oireachtas Member for the constituency I fear for the future of the coal miners in that area. Mining has been their livelihood for generations and very little alternative employment is available to that community. I do not agree with the ESB's proposal to close this station. The mining and burning of coal is the way to keep that community vibrant and alive. I welcome the developments taking place with regard to MF Kent, and I hope that Arigna and its catchment area of Ballyfarnham and Drumshanbo will rise from the ashes and that we will return to a situation where coal mining will be carried on there, where coal will be burned locally, and where the community will again be involved in coal mining and in the provision of jobs for this generation and the next.

An Leas-Chathaoirleach

Before I call on the Minister, I wish to endorse the sentiments expressed by Senator Reynolds and Senator Finneran. It is very difficult for us, as public representatives of an already deprived area, to understand why this power station is being closed down when there are still deposits of coal in the region. I understand from meeting the delegation today that 100,000 tonnes of coal, worth approximately £1 million, have been left on the site. I do not believe the introduction of MF Kent to the area will create any local jobs. I understand the people working there will have a very specific task and will be coming to Arigna from outside the area. I understand that Senator Belton wishes to speak. As the time is up, I ask him to be brief.

I will be brief. I endorse what my colleagues, Senator Reynolds, Senator Finneran, and you, a Leas Chathaoirleach, have said here today. This is a sad situation, especially when it occurs in the west which has been ravaged by lack of employment. This situation was a source of employment and now it is gone. This Government has failed in its efforts to provide jobs and to retain those already existing. Before an election politicians speak loudly about what will happen after the election; I am sure the people of Arigna and the surrounding areas will not forget what is happening today.

It does not give me any pleasure to come into this House to participate in a debate like this. I sympathise with the plight of the people in this area. I wish to put a few facts on the record, because it is not the Government who has taken a decision to close down this station. We manage the country and the economy to the best of our ability with the resources we have in the national interest. We have inherited a situation where at the end of the day we must allow a semi-State body like the ESB operate its commercial mandate and to use the energy resources in the best interests of the nation. The ESB decided to close down the station at Arigna at the end of this month, June 1993.

Arigna power station was commissioned in 1958 and has been in operation for 35 years. It was originally proposed to close the station eight years ago, but this was deferred. The ESB's decision to close now has been taken in the light of the depletion of the reserves of main seam coal in the Arigna area and the knowledge that the continued operation of the station would be so uneconomic that the necessary expenditure to keep the station going safely cannot be justified — and safety is of vital importance.

Some years ago Arigna Collieries, the ESB and the unions agreed that there were no qualitative coal reserves in Arigna and, consequently, the coal mine closed in 1990. This has ultimately led to the decision which we are debating this evening. The continued operation of the Arigna power station has been the subject of several consultancy studies, by the Geological Survey of Ireland and other consultants in Ireland and the UK. These studies concluded that it is no longer economically viable to continue producing electricity at Arigna.

The Minister, Deputy Cowen, recently met with a delegation representing the workers at Arigna who argued that there are sufficient supplies of coal in the Arigna area and that the station should not be closed. While we are aware that a body of coal exists in the locality we have not been convinced that a sufficient quantity can be produced at both a price and a quality which would make the continued operation of the Arigna power station an economic prospect.

Although there have been suggestions that coal could be supplied for £65 per ton, this appears optimistic. When the ESB last accepted coal at Arigna the price was over £90 per ton. Even if a long term price of £65 per ton was possible, the cost of Arigna electricity would be over two and a half times its economic value based on fuel costs alone compared to electricity generated at other stations. The continued operation of the Arigna station would, therefore, require a major and open-ended financial commitment from the ESB. This would also give rise to the prospect of already high costs escalating further to unacceptable and serious levels. We have found no basis for an other interim extension of the life of the station.

The reliability of the station is poor and any extension past its closure date would require significant capital investment. We are advised by professionals in the field that there is no reliable prospect of electricity being produced at Arigna in the future at a reasonable cost.

I can assure the House that there will be no compulsory redundancies among the ESB staff at Arigna. All staff will be offered the choice of voluntary redundancy or relocation to other stations within the ESB network. That is important because there are opportunities at the moment within reasonable distance of Arigna where staff can be relocated; these opportunities may not continue to be available. It is important that people are maintained as close as possible to their own communities.

The community in Arigna has enjoyed substantial benefits from the Arigna station for 35 years. Closure of the station can no longer be deferred and we feel it is time to take a long term view of the future and focus on new developments. Since the decision to close the station was taken by the ESB, considerable resources have been directed towards developing alternative job opportunities with some success. Indeed, the ESB has been approached recently about the possibility of basing a gasification demonstration project at the Arigna plant. These initiatives deserve all our support and co-operation.

Over the past year in the Departments of the Taoiseach and Finance and now in the Department of Transport, Energy and Communications I have done what I can to ensure this project is brought on stream but it depends on co-operation, co-operation between the ESB and the local community to create the opportunity through research and development to provide a viable alternative for the people of the Arigna area to utilise the natural resources in a more diverse way and to maximise opportunities.

The Minister, Deputy Cowen, myself and the Department have received strong representations on this project over time from Deputy Doherty, Senator Mooney, Deputy Ellis, Senator Finneran, Senator Naughten, Senator Reynolds, Senator Belton and others. We are fully aware of the situation; no later than today we had two meetings with Members of the Oireachtas from the area and they have again impressed on us the seriousness of the situation.

I concur with the aspirations of the Oireachtas Members in the area. I come from a rural area where we had a similar situation. The local indigenous industry, Bord na Móna, closed down an operation which employed 600 people. Today 35 people are working there in a private sector operation. I can understand the serious consequences this closure will have on the economic life and vibrancy of the community. However, after consultations between the Minister, myself, our officials and the ESB, we want to ensure that this closure is reasonable and will create further opportunities for people. We have asked the ESB to treat everybody with the maximum generosity by way of relocation and further opportunities. We hope that with the co-operation of the ESB and the new project, there may be options for people to find alternative employment.

Is oth liom nach bhfuil níos mó deaeolais agam ar an ócáid seo, ach ceapaim go bhfuil tuiscint maith ag na ionadaithe ón gceantar go bhfuil orainn an obair seo a chríochnú.

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