Permission has been given to Deputy Connaughton to raise on the Adjournment the question of the peat briquette factory at Ballyforan. The Deputy has a maximum of 20 minutes.
Adjournment Debate. - Ballyforan Briquette Factory.
I propose, if it is in line with the ruling of the Chair, to give ten minutes of my 20 minutes to my colleague, Deputy Naughten. I thank the Ceann Comhairle for allowing me to raise this matter this evening. The question surrounding the commencement of the Ballyforan peat briquette factory on the border between Galway and Roscommon is causing concern to a great number of people in that area at the moment. I want to give the background to why this has arisen.
During the general election campaign in February the Fine Gael Party and I let it be known that the Coalition Government in the 1982 Public Capital Programme made the following inventory. I want to quote exactly what we said about Bord na Móna on that occasion. We said:
The overall Bord na Móna capital estimate for 1982 is £34.5 million which is mainly for the continuation of bog development work under the board's third bog development programme. Significant provisions include £8.4 million for the proposed briquette factory at Ballyforan, £6.3 million for railways, £5.3 million for machines, £4.7 million for drainage and £3.4 million for buildings.
On that occasion Fianna Fáil were saying that the Coalition Government did not allocate any money to this project at Ballyforan. I have in my hand absolute proof that that is not the case. I want to counter any arguments that have been made to the contrary.
One Deputy actually saw fit to go to a local newspaper and inform them that the Coalition Government did not have the money available and they did not intend to start this briquette factory. It is also significant that Fianna Fáil canvassers were declaring that if they were elected the peat briquette factory would start within a week or two of them taking over. It is now three months later and this has not happened. I was present in the House today when the Minister for Defence, on behalf of the Minister for Energy, answered a question tabled by Deputy Naughten which indicated to me that there was no clear-cut decision that this factory would start next week or the week after. I am delighted to see the Minister in the House to answer this question this evening.
I believe the workers and everybody concerned with the project at Ballyforan deserve to know what exactly their future is and where they stand. The people concerned with this project are well aware that a significant number of the people employed there at the moment have very little work to do and it is obvious they are waiting for a directive from the Government or the board of Bord na Móna about the money coming for this particular project. It is important to allay the fears those people have. I hope the Minister will do so when he is replying. As far as this project is concerned, there never was a project, from an industrial point of view, as relevant as this one is to this area.
The Coalition Government of the early seventies decided that a power station would be built at Ballyforan but when Fianna Fáil come into power they decided that that particular project should be phased in with another one at Shannonbridge and a briquette factory should be built in its place. So long as the bogs are being utilised and so long as it creates employment everybody will be happy with that. There is no more relevant industry than a peat briquette factory for that area because there are extensive boglands which are very suitable to this project. The raw materials are available and do not have to be imported. The most important thing about this is that the end products, briquettes, are in great demand on the Irish market. I believe we are importing a lot of such fuel. When we are trying to conserve energy it is very good sense to go ahead with this project.
Ballyforan on the Galway-Roscommon border is a black spot for employment and has been so for many years. We believe that the general area of north Galway and south Roscommon is a very deprived area and nothing should be allowed to come in the way of this hard earned employment. I do not make any secret of the fact that it was the bogs of south Roscommon and north Galway which kept that area poor over the years. It is now an ideal opportunity for the same raw material to play its share in helping the families in that area to make a decent living.
There are a lot of other things I would like to say about this matter but the clock would beat me. A number of projects, which have been undertaken by Fianna Fáil recently, like Knock airport and the Clondalkin Paper Mills, do not stand up in the same light as this factory at Ballyforan. I believe the necessary skills are there. I know there are hundreds of people who have their names in with Bord na Móna for employment and who are only too willing to take the work if it is provided. The problem now seems to be that after a certain amount of money is used on site development and that kind of work there appears to be a go slow. I am very anxious to have the Minister inform the House that the necessary money is now available and that work on this factory will commence. The level of staffing there at the moment cannot be maintained if there is not a suitable increase in the activity on the site. It appears to me that if the money is available there is no reason why this worth-while project should not start.
I have a number of questions which I would like the Minister to answer. When will the project commence? We were told three months ago that if Fianna Fáil got back into power it would start within a fortnight. There is no sign of the project starting three months later. Will the present number of employees be retained? How many extra staff will be taken on? Is the money actually there for this project? If it is not there from where does the Minister intend to get it? Another important question, which many people in the Ballyforan area, particularly the various committees who are so interested in the future of this factory, would like answered is will the IDA be involved and what type of grant assistance will they put into this project? It has been said that if a foreign industrialist thought of an idea like this everybody would be doing everything possible to ensure that he got everything that was going. I assume the IDA will be involved. I should like to hear the Minister refer to that and to give sone indication of the level of grants that this factory at Ballyforan may expect to receive. This is a project that is all-embracing in so far as rural Ireland is concerned. It is very important to the local people in particular in terms of employment. In these circumstances we must have no more dilly-dallying so far as the factory is concerned. I hope that after this debate this evening everybody concerned will know where they stand. It is not good for people to have this sort of cloud over them, as it were.
By way of conclusion I wish to put an end to the lie that seems to have been doing the rounds since the last general election campaign and to point out that as the public capital programme shows, £8.4 million was made available by the Coalition for this project. I want the Minister to tell us what has happened to that money.
I am glad to have the opportunity of speaking this evening because of the importance of the subject in question. Not only is the building of the briquette factory at Ballyforan of great importance to the people of the area but the people of the entire area of mid- and south-Roscommon and east-Galway. When Deputy Barry, as Minister for Transport and Power, announced that Bord na Móna were to begin a major development programme on Derryfadda bog, there was new life and hope for the people of the area of a kind that had not existed before. The farmers co-operated with Bord na Móna and sold bog at a very low price. They did this in the belief that the project would be of major advantage not only in terms of employment for the local community but for the nation by way of the provision of an additional form of energy.
It is uncertain now whether this development will go ahead but we must dispel that uncertainty and that is why I call on the Minister to state clearly when the project will begin. Bord na Móna have commenced major drainage work on the bog but this development work is coming to a standstill because of the uncertainty that surrounds the building of the factory. In anticipation of the project going ahead Roscommon County Council provided sites for houses in the area and the rural housing organisation have moved in to build houses for the workers. Water and sewerage schemes have commenced but the whole project is in jeopardy now.
As Deputy Conaghan has pointed out the Coalition provided £8.4 million specifically for the building of this briquette factory. It is regrettable to say the least that this money is not being utilised and that the very necessary employment in the area is not being created. There is a major unemployment problem in the area as a result of Roscommon and Galway County Councils having had to lay off substantial numbers of men. They were forced to do this because of the insufficiency of the moneys provided by the Government to the local authorities to maintain roads. A briquette factory at Ballyforan would employ directly 200 men and in addition 400 extra jobs would be created on the bogs. What we are talking about is a major industry and if it cannot go ahead the effect on the local community will be devastating.
I want to hear the Minister state clearly that it is Government policy to build this factory and to let us know also the date on which we can expect the work to begin. It is not sufficient for the Minister to state, as he stated in reply to a question today, that this project depends on the development programme being considered by Bord na Móna for 1982. That was not the policy of this party while in Government. We stated clearly that the project would go ahead. This was reiterated by the Minister of State at the Department of Posts and Telegraphs while speaking in the area. However, I regret to note that neither of the Deputies from the Roscommon constituency is here for this important debate this evening.
There are projects being financed despite the fact that their effect would be much less beneficial than the one we are discussing. For instance, money is being provided for the building of an airport at Knock. Should we not give priority to developing a natural resource which apart from the employment aspect would provide a very necessary form of fuel and would reduce the massive national bill for coal and other fuels?
It is difficult to express adequately the anger and disappointment of the people of the Ballyforan area and of that part of the country generally at the delay on the part of the Government in honouring a pledge that was given unequivocally prior to the general election to go ahead with this project. It is estimated that two-and-a-half years would be the time span between the beginning of the building of the factory and the production stage. My information is that Bord na Móna on starting development work at Ballyforan were planning on having the factory in operation by 1984. The earliest date by which it could be in operation now is 1985. In effect this means that production work on those bogs must stop.
Therefore, the employees who were taken on there on a seasonal basis no longer will have the opportunity of working during summer. It is most unsatisfactory that there is such an air of uncertainty about the whole project. This uncertainty puts people in a very awkward position in terms of getting loans for houses in that they do not know whether they will have jobs in from six to 12 months time. I appeal to the Minister to tell the House when work on this project will begin.
I understand that the Minister has agreed to allow two other speakers in before he concludes. I hope Members are mindful of multum in parvo. We must finish within ten minutes and we have three speakers. I ask for the co-operation of the two Deputies and the Minister.
I should like to thank the Minister for sharing his time with Deputy Callanan and myself. I tried to raise this matter on the Adjournment on 26 November last and the Tánaiste, Deputy Michael O'Leary, would not come to the House to answer my question. I am glad the Minister for Industry and Energy has seen fit to attend to answer any questions put to him and I have no doubt that I will be pleased with his replies. Like the people of south Roscommon and north Galway, I was glad on 31 May 1979 when the Fianna Fáil Government gave approval for the erection of this peat briquette factory. A lot has happened since then. The farm mentioned closed down and the workers went to work on the bog development programme at Derryfada on a farm taken over by Bord na Móna. All politicians were anxious that the briquette factory commence operations. I am glad that £8.4 million is in the capital programme and the only matter I have questioned is why Bórd na Móna were not told about the allocation. I hope that when the price structuring problem that Bórd na Móna has is sorted out that they will be given the go-ahead for the first stage of the factory.
We are all aware that there is not an economic argument against the construction of the factory, which will utilise natural resources. This is a deprived area of the west and the provision of 600 jobs would prove a major boost. The jobs which Bórd na Móna will provide in the factory are vital in the area. I hope the seasonal jobs that have been available in the area in the past will continue to be available, particularly for part-time farmers. When I was first elected to this House in 1975 following a by-election I called for the construction of this factory in Ballyforan. I am confident that the Minister will see to it that that factory is erected so that vital jobs will be provided.
I should like to thank the Minister for giving me some of his time. The erection of a factory in Ballyforan is of vital importance and I have no doubt that the Minister will not disappoint us. We kept our promise in relation to Tuam and we will do it in relation to Ballyforan. I did not make any political propaganda about this matter and I did not mention the prospect of a briquette factory at Ballyforan in the course of my election campaign but we were all interested in it. Such a factory will avail of the natural resources in the area. I understand, rightly or wrongly, that we will have two factories in Ballyforan, one to be built shortly to produce 140,000 tons of briquettes. I understand that the second factory will produce a similar amount of briquettes. Deputy Connaughton referred to IDA grants. In my view it is scandalous if such a project which utilises natural resources does not qualify for such a grant. We are all agreed on the necessity for such a factory in that area and I am confident that the Minister will deliver the goods.
I am surprised that this matter has been raised on the Adjournment because if those who are expressing concern about it now were as concerned some months ago they would have approached Members of their own party who were in Government. Had they been told true facts then, there would not have been any need to raise this. Approval for the erection of a briquette factory by Bórd na Móna at Ballyforan, County Galway, was first given by Government in May 1979. The factory was to be located about one mile southwest of the village and was to be built in two phases. It was planned to bring phase one into operation during 1985 and phase two during 1988. Total cost at current prices would be £36.8 million and the total projected capacity was 260,000 tonnes of turf briquettes. The factory would be serviced from the Derryfadda group of bogs, and would employ about 600 persons in the bog development work and in the factory.
Bord na Móna recently carried out a re-examination of their bog development programme in the light of the board's projected capital needs in 1982. Arising from this examination I understand that the board are considering a change in detail in regard to the briquette factory at Ballyforan whereby the original plan for the project to be executed in two phases will be replaced by a plan which would allow the project to be carried out on the basis of two separate developments. A new factory will comprise a single unit with a production capacity of 140,000 tonnes, per annum with employment for 110 persons. The estimated cost at current rates for this part of the development would be £20 million. Work on the bog area to service the factory is proceeding.
At the same time I have carried out a full review of the bog development currently being carried out by Bórd na Móna. I have had particular regard to the financial resources which the board must derive, in the absence of Exchequer funds, from earnings on the sale of its products to enable the work to be carried forward. I am satisfied that the result of this review will avoid any delay in getting work commenced on the briquette factory.
I have been asked why there has been a go-slow and a number of delays. I have heard Deputies refer to the fact that Exchequer capital was provided. I should like to tell the House — I am sure the Deputies opposite are not unaware of this — that the capital they said was provided in the capital programme was non-voted capital, no more than an insertion into a capital programme to allow Bord na Móna to go out ——
The money is there.
It is non-voted capital. The Coalition Government were aware of the financial situation and the obligations their decision put on Bord na Móna to borrow the money. Bord na Móna sent a memorandum to the Government and I know what the Coalition Government did with it. I know that they took the easy way out. They did not have any regard as to how Bord na Móna would finance this development and, obviously, could not care less. That is the reality of the situation. The Coalition Government did not give Bord na Móna any Exchequer money to start that factory. They said they would write it into a non-voted situation and could borrow the money if they were able to. Now Members of Fine Gael have the hard neck to come to the House questioning the delay in the project. I am surprised to hear two Deputies from the west running down an instrument of regional development in the west, the Knock airport project, and refer to honouring pledges. We know of another pledge they gave, to put a £20 million sports complex there and they reneged on that.
The people in Dublin West gave Fianna Fáil their answer about Knock airport. They cannot cod the people all the time or continue to buy votes.
I am surprised western Deputies are denying Connaght the opportunity to develop like the mid-west region and Shannon. They have little interest in the development of the west of Ireland, they are still a Dublin based party, will always remain so and that is what will keep them in Opposition. The Deputies opposite know that the non-voted capital did not mean anything. It had to be borrowed by Bord na Móna who were not given the wherewithal to finance it. As far as Fianna Fáil are concerned we honour our commitments and will always do so, especially in relation to the development of natural resources.
Did the Government honour the promises to Deputy Tony Gregory yet? I wonder what will they cost?
If the Deputy does not wish to listen to my reply and has no interest in what I have to say, he should shut up for a moment. Site clearance is proceeding and site drainage is taking place. I understand from Bord na Móna that within four months the foundations will be dug for the factory. Work will then commence and no thanks to the Opposition. If it was left to them they would not so anything for the people of Ballyforan or the west.
Why did the Minister not start the work after the election?
The people of Dublin West showed the Government the type of respect they have for them.
The Coalition did not have any intention of doing anything about the briquette factory in Ballyforan. They reneged on their promises and do not want the west of Ireland to develop.
We will have half a factory. That is all we will get.
Fine Gael will always remain in Opposition because they neglect the west of Ireland. They got their message from the west.
We will get half a factory. Fianna Fáil let the people down.
The Dáil adjourned at 9 p.m. until 10.30 a.m. on Thursday, 27 May 1982.