andMr. Kitt asked the Minister for Industry and Energy if he will give a de facto guarantee that the building of the proposed peat briquette factory at Derryfadda, Ballyforan, Ballinasloe, County Galway, will commence in 1983; the size of the factory; its capacity, the number of permanent workers to be employed there; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - County Galway Proposed Peat Briquette Factory.
7.
In the light of the financial situation facing this Government when we took office last December I initiated a review of all major capital projects under the aegis of my Department. The Ballyforan factory was one of the projects included in this review.
An appraisal of the project was carried out in conjunction with Bord na Móna. This has recently been completed and I intend that its conclusions will be put before the Government at a very early date. It would not be appropriate, therefore, for me to give any guarantee relating to the project until the matter has been considered by the Government.
Is the Minister aware that just one week short of 12 months ago the sod for this new factory was turned? Is he further aware that he met a deputation on 4 August last, which is one week short of three months ago, when he told us that this review was at an advanced stage? Can he now tell us the reasons a decision cannot be taken with regard to this project? We want to know are the Department going ahead with this project or not. Can he give us the reason it is being put off weekly, daily and monthly? It looks now as if it will be well into 1984 before any decision is taken. Yet, the Minister told me on 4 August last that he expected a decision to be taken this year. The Minister laughed when I asked that question. I want to know the exact position.
I do not think I laughed when the Deputy asked the question. Actually, the deputation to which the Deputy refers raised a number of points of considerable value which I had to have considered in addition to those already being considered in the review. I indicated at the time that I would have the points made by certain members of the deputation examined carefully in the review. I can assure the House that there will be no avoidable delay in coming to a decision in this matter. However, it is the responsibility of the Government to ensure that where a new investment is being undertaken its return will be sufficient to at least remunerate the funds being borrowed to finance it, given that these borrowings are guaranteed by the State.
Is the Minister aware that this is the second review that has been carried out by this Government in two years? We were told in the House by the Minister of State, Deputy Collins, that the review was at an advanced stage in the first week of July and that the Minister was to submit it to the Government within a few weeks. A subsequent deputation — which did not give us any other news — met the Minister in August. Now in October we still have not got any decision. Has the Minister submitted the review to the Government, as was promised by the Minister of State last July? Can the Minister also confirm that we will get some kind of demountable dwelling or half a factory in Derryfadda rather than a full scale briquette factory?
The first review was basically about the price that Bord na Móna were able to charge for their fuel. That review was completed and there were increases in the prices. That review was initiated by a Coalition Government. The actual price increases were implemented by their successors, the Fianna Fáil Government. The present review is a different one. It is concerned with the capital project in Ballyforan and whether or not this can remunerate itself in terms of the interest that has to be paid on the borrowings to pay for it.
We are very disappointed with the negative reply from the Minister. We were expecting at this stage that at least the Government would have the competence, capacity or ability to take a decision in relation to a project commenced 12 months ago. It is about time the Government started governing. As far as we are concerned in my constituency, the Minister is not representing the best interests of our people.
Is the Minister aware that the plant has started to arrive for the project in Ballyforan, that this plant was ordered and paid for? Is he aware that the IDA have allocated £3 million for this project? Is he aware also that it was approved by the previous Government, was allocated and budgeted for? Surely it is about time the Minister took a decision to continue a project which had commenced. Without the project the whole region would be virtually wiped out, because there is no other major industry there. We are dependent on the Department now to take a decision in relation to this project. I hope that Government TDs from East Galway and Roscommon will rally forward and lay on the line exactly where they stand, because as far as I am concerned they have been standing idly by with regard to this project.
The previous Government and Governments ensured that major capital projects, once commenced, were reviewed from time to time to ascertain whether or not they were going to be completed within budget and meet the objectives for which they were commenced. If they had been as careful as we, we would not have so many major financial problems in the public sector.
On a point of order, the Minister has not replied to my question.
That is not a point of order. I am calling on Deputy Naughton.
I asked the Minister if he is aware that £3 million has been allocated by the IDA but he has ignored the question.
The Deputy did not ask that question. He will resume his seat. The Deputy is not asking questions — he is making long rambling speeches.
The Minister has not replied. He is either not willing or incapable of replying.
The Deputy will resume his seat.
What Deputy Leyden has not pointed out is that the foundations were laid for this as part of the Fianna Fáil election campaign last year. I should like to ask the Minister when will the review at present in hand be completed? What is the cost to date of the contracts entered into by Bord na Móna in regard to the purchase of machinery? Were some contracts placed after the Government's review had begun?
In regard to the last part of the Deputy's question, I am investigating the matter very carefully. There have been suggestions that some contracts may have been placed after the Government had requested Bord na Móna not to proceed further with the placing of contracts. The question is under serious investigation. The review has been completed and I am preparing it for presentation to the Government.
Can the Minister tell us what will be the size of the factory?
It will be 15,000 square feet and the capacity will be 15,000 tonnes. The number of permanent workers to be employed there will be 110 and the number of permanent workers in the bog will be 300.
Will the factory be commenced in 1983? This is part of the original question but the Minister has not replied to it.
I will not answer that question because I do not know the answer. I will answer it when the decision has been taken, but not until then.
Question No. 8.
I propose to take Questions Nos. 8 to 18, inclusive, together.
On a point of order, we have asked questions about a number of different stations and the Minister is being very unfair to the people of the country when he bulks all the questions together. I am asking for a specific reply to my question which concerns my constituency. Is this an indication that the writing is on the Wall? Will the Minister tell us why he is taking the questions together?