I thank you, a Chathaoirligh, for allowing me to raise this matter on the Adjournment. I also thank the Minister for coming to the House. I wish to give a few minutes of my time to Senator Dardis at the end.
Adjournment Matters. - Peat Fired Power Station for Midlands.
Is that agreed? Agreed.
The uncertainty surrounding the proposed peat fired electricity generating plant in the midlands is a matter of grave concern to all the people of that area. That is why I am pressing the Minister for Transport, Energy and Communications to tell the people where exactly this proposal now stands.
It will be recalled that the proposed peat fired station was the only major project for the midlands proposed by the Government in the context of the National Development Plan. It would provide jobs in the station itself and in Bord na Móna, thereby benefiting the entire area. The uncertainty about whether this project will actually go ahead comes against a background of a loss of approximately 3,000 jobs, both in the ESB and Bord na Móna, in the midlands region over the last ten years.
The midlands, including the counties of Laois/Offaly and west Kildare in particular, is one of the country's worst unemployment blackspots. The region has been devastated in terms of job losses over the past decade. It is understandable, therefore, that the people greeted the proposed peat fired project with great enthusiasm, only to have it dashed, at least temporarily, by the new threat that the project is now in doubt and that an independent appraisal has to be completed before EU funding for it will be forthcoming.
I understand that consultants have been appointed to carry out an appraisal of this project. I want the Minister to tell the House today what is the latest news on this study, whether it is been completed and what are its findings. It is unfair that the people of the midlands should be left in a state of uncertainty about the economic welfare of the area. We already know that there are up to 3,000 other ESB jobs under threat by that company's rationalisation programme. The concentration of generating stations in the midlands could lead to a large number of job losses there and is a cause of great anxiety for the people.
Because of that I feel it is vital that the midlands region secures a major flagship project such as the peat fired generating station. That is why the people there are entitled to know from the Minister, who also represents the area, what exactly is going on. At present, for young people leaving school there is little hope of finding employment in the midland counties. They too, as well as their families, are watching the present uncertain situation with great apprehension.
Besides telling us where the consultancy study of the peat fired project now stands, I want the Minister to also give clear assurances to the people of the midlands that in the event of EU funding not being advanced, that, in line with his former commitment, he will spell out clearly what the Government will do to ensure that the station is built and that the people of the midlands will get their fair share of the national economic cake.
This is the heart of a balanced and coherent regional development plan for this country. We cannot tolerate a situation where the fruits of economic growth and development end up enjoyed wholly disproportionately by the people of one particular region. It is the responsibility of the Government of the day to ensure a balanced regional development programme. In that context I am insisting that the people of the midlands get their fair share. I am calling on the Minister for Transport, Energy and Communications to ensure that the present Fianna Fáil/Labour Partnership Government deliver on that entitlement to the people and communities of Laois/Offaly and west Kildare.
I thank Senator Honan for sharing her time with me and I support what she has said. I also welcome the Minister to the House.
I want to draw the Minister's attention to the critical situation facing the traditional peatland communities in the midlands and in particular to what has happened in my area of west Kildare. Over the past seven years some 2,600 jobs have been lost in west Kildare and north-east Offaly. That is a much more serious haemorrhage than some of the highly publicised company closures that have happened elsewhere and it appears to have attracted little media attention. Most recently there was the closure of Bord na Móna's Lullymore briquette factory and the ESB's power station at Allenwood. Apart from the jobs themselves, there is a huge knock-on effect on the local economy, which traditionally has been so dependent on the bogs. I am sure that both the Minister for Transport, Energy and Communications and the Minister of State will be only too well aware of that fact. The very survival of some of these peatland communities is now in question.
An immediate concern is the future of the remaining workforce at the Ballydermot Bord na Móna works outside Rathangan. Employment there has shrunk from 250 people at peak times to just over 60 people. I would like the Minister to give me an assurance about the future of the works, its status and its staff there. The most positive assurance would be for the Minister to announce when work will commence on the proposed peat fired generating station, as outlined in the National Development Plan.
Since there will be a three year leadin period before the plant is completed and commissioned, this matter is urgent. We have had repeated forecasts from the Minister and his Government colleagues in the press and on local radio, most notably during the European election, that the power station would be built. Hopes have been raised in the hard pressed communities of the area. The Minister now needs to deliver on the promises. What has been done to convince the European Union and the Commission of the merits of this proposal, where does it stand at the moment and when will the station be built?
I have listened with great interest to the contributions of both Senators. I am glad of the opportunity to inform this House of the latest position in relation to the proposal to construct a new 120 megawatt peat fired power station in the east midlands.
In the Dáil on 11 October I informed another midlands colleague of the Senator of the de facto situation. I wish to confirm that this evening and to say there is no uncertainty whatever pertaining to this project. I can understand that a party like the Progressive Democrats being uncertain about the matter, but I cannot understand why it cannot accept the categoric assurances given by both the Minister and myself on a number of occasions. We have a National Development Plan which will come into force on 1 January. It has been underpinned by European funding. If we push projects too hard, we are told that we are politically interfering; but if we allow them to come through the system, then there is uncertainty about them. We cannot have it both ways; we must accept the de facto situation.
First, let me briefly outline the key objectives of Irish energy policy and describe how peat forms an integral part of this policy. Irish energy policy incorporates three main objectives: the supply of a choice of fuels as efficiently as possible, at internationally competitive prices, taking account of supply security, socio-economic and environmental considerations; the consumption of this energy as efficiently as possible; and the production of as much as is economically possible of national energy requirements from indigenous sources.
The use of peat for power generation fits into this policy on all fronts. First, in the absence of a new discovery of natural gas reserves, peat will be Ireland's only significant source of indigenous energy. Secondly, the role of peat in providing a secure source of energy will consequently become more vital, even though its contribution to our overall energy needs will remain relatively small. Finally, by using the latest technology and taking advantage of the most modern and efficient methods available for harvesting, peat will be a competitive source of energy when compared with other fuels for the foreseeable future.
Ireland has extensive peat resources but only about 8 per cent are developed for productive purposes. Most of this development is carried out by Bord na Móna and much of their activity is concentrated on the production of milled peat for electricity generation.
Peat is a major national energy resource and it would be negligent not to continue to harness it for the benefit of the nation, particularly in the light of the enormous advances in efficiencies which can now be achieved from modern peat burning plant.
When the existing peat stations were commissioned in the 1950s and 1960s they had efficiencies comparable with the alternatives then available and their development had wider benefits in terms of supply security, employment and infrastructural support in our rural areas. These wider benefits remain as valid today as they were 30 years ago and as efficiencies have advanced, there is a continuing incentive to invest in modern peat burning technology.
Against this background and in order to utilise peat resources that would otherwise not be used to full advantage, Bord na Móna prepared a feasibility study for the construction of a new station. The study demonstrated the economic feasibility of the project and the Government has demonstrated its support for the peat industry by including the project in the National Development Plan.
The main features of the proposed station will be: a fuel requirement of one million tonnes of peat per annum. An improved conversion efficiency of 36.7 per cent compared to the average of 25.5 per cent in the existing peat stations. The direct employment on a permanent basis of approximately 90 people in the new station. The employment of 450 people at peak during construction involving over 700 man years in total, with bog preparation work creating a further 1,120 man years employment. The support of 250 permanent and 250 seasonal jobs in peat extraction when fully operational. There will be a direct income impact of £19 million during operations, the vast bulk of which will accrue to the local economy.
As part of its consideration of our application for Structural Fund assistance, the EU Commission, as is normal for major projects of this kind, requested that an independent socioeconomic cost benefit analysis be carried out. That study has now been completed. The proposal has, I believe, been demonstrated to be economic. We are expecting final confirmation of European Union funding in the near future and the project will proceed as planned. The House can be assured that Minister Brian Cowen is totally and absolutely committed to this excellent project which is of vital importance to Counties Offaly, Laois and Kildare, and indeed the midlands in general.
As regards the request from Senator Dardis pertaining to the Rathangan works, I had no knowledge of that question. If he is prepared to let me have the full details by letter I will be only too delighted to extract the full information for him.
A Chathaoirligh, is onóir mór dom bheith ar ais arís. Tá súil agam go gcuirfidh an t-eolas seo dearcadh an Rialtais in iúl don Seanad.