Seamus Brennan
Ceist:27 Mr. S. Brennan asked the Minister for Transport, Energy and Communications if he intends removing or reducing the debt of Bord na Mona; and if he will make a statement on the matter. [3804/95]
Written Answers - Bord na Móna.
Pat Gallagher
Ceist:34 Mr. P. Gallagher (Laoighis-Offaly) asked the Minister for Transport, Energy and Communications the way in which he will respond to the proposals made some time ago to the Government by Bord na Móna regarding the company's debt and equity situation; and if he will make a statement on the matter. [3565/95]
I propose to take Questions 27 and 34 together.
Bord na Móna has gone through a major rationalisation process in recent years, the magnitude of which cannot be over emphasised. The workforce has been reduced from around 4,800 in 1987 to approximately 2,270 currently and this was accomplished largely without serious industrial relations problems. The board continues, however, to be in a serious financial situation because of its very high level of debt.
At 31 March, 1994, Bord na Móna's total net borrowings amounted to £172 million, all of it guaranteed by the State. Despite the major improvements in recent years in bringing its operations back into profits, the company still had a negative net worth of £72.4 million. Financial consultants employed by the board to look at financial restructuring reported in 1993 and identified £126 million of the debt as being unsustainable.I am at present having discussions with the Minister for Finance in relation to the financial structure of Bord na Móna and I expect shortly to be in a position to put forward proposals to Government.