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Dáil Éireann díospóireacht -
Tuesday, 7 Nov 1989

Vol. 392 No. 7

Ceisteanna—Questions. Oral Answers. - Bord na Móna.

42.

asked the Minister for Energy the present plans to restructure Bord na Móna; and if he will make a statement on the matter.

58.

asked the Minister for Energy whether he has reviewed Government policy in relation to Bord na Móna following consideration of a consultant's report; and if he will make a statement on the matter.

I propose to take Questions Nos. 42 and 58 together.

The recommendations of the consultancy report commissioned by Government into the operations of Bord na Móna have been the subject of considerable discussions with the company. The implementation of specific measures, however, such as the recent decision to divide the company into separate solid fuel, milled peat and horticultural divisions is a matter for the commercial judgment of the board itself.

The recent board decisions, which included the restructuring of the company, are in line with the consultant's findings and with Government policy which continues to be that Bord na Móna should operate in a commercial fashion and should structure themselves so as to increase their competitiveness in the marketplace.

Arising out of the Minister's reply does he feel that the present dependence on the ESB contract for almost three-quarters of the board's output is a commercial basis for operation? Has he proposals, beyond those in the very poor Bill presented to this House for further development of Bord na Móna into activities other than the electricity contract?

The electricity contract is something which is under review. The Bill, as the Deputy is aware, is merely an enabling Bill to give legislative authority to Bord na Móna to undertake other commercial activities, to free them from the constraints under which they have to operate under present legislation. I do not think it would be fair to be too critical of the Bill because it is positive in giving Bord na Móna the opportunity to get involved in activities which they are precluded from engaging in under existing legislation. Their involvement in other commercial activities would spread their portfolio and enable them to get into profit-making activities which would be related to their turf production.

In relation to the ESB, an element that is so vital, has the Minister adopted a general line of approach to renegotiation of that contract, a contract based on an oil crisis of some years ago?

I am only free to tell the House that the matter is under review.

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