Dáil Éireann díospóireacht -
Wednesday, 30 Sep 1998

Vol. 494 No. 2

Adjournment Debate. - Electricity Generating Stations.

Mr. Enright

I wish to warn the House that the impending closure of Ferbane power station is of the utmost gravity to all concerned. Such a closure will lead to the loss of between 300 and 350 jobs in the ESB and Bord an Móna, which will affect the entire county of Offaly. The closure cannot, must not and will not be allowed by the people of Offaly. They will fight to ensure this power station is kept open and the £16 million refurbishment work is done.

It is imperative that the Minister intervenes in this matter immediately, speaks to the ESB and directs the company to make a further determined effort to resolve this matter and not to act in such a precipitous manner as to close this station. The House will be aware that the board of the ESB will meet in the middle of October when management will propose the closure of the station. The ESB and the unions must make a further effort to resolve the few remaining difficulties which are preventing this work proceeding.

However, the MSF union must separate theory from hard facts. Mr. Joe Bowers, regional manager of the MSF, stated that talks were expected to continue until April 1999. This investment cannot be allowed to be delayed for that length of time. I call on Mr. Bowers to realise that many peoples' livelihoods hang on the decision to proceed with this investment. Ferbane should be treated on a stand alone basis and ring fenced. I call on the MSF union also to allow the station to be treated as a special case so that work can continue. The outstanding difficulties in other stations should not be allowed to intervene in the difficulties at Ferbane. Council representation in this electoral area has been reduced from five to four and there is considerable unemployment. If that station were to close everyone in the surrounding area would be affected by it. I believe the three MSF workers, the other unions and management would comply with any agreement reached. It is essential that Ferbane power station is saved and I ask the Minister to use her good offices to ensure it is.

The local papers reported this week that the ESB is seeking further job losses and redundancies in Shannon Bridge and Rhode. I am concerned that further job losses are envisaged across County Offaly. Those employed by the ESB and Bord na Móna across the midlands have made many sacrifices. They have suffered enough and should not be asked to suffer more. Those two semi-States bodies have contributed a great deal to County Offaly. I ask the Minister to try to ensure that the future viability of these stations is guaranteed and that there will not be further job losses as threatened during the talks.

I understand the Minister will meet members of Offaly County Council later this week. I thank her for her courtesy in dealing with this matter. I call on her to try to ensure that the Ferbane power station is kept open. I will co-operate with her, the ESB and the MSF in any way I can to try to save those jobs.

Minister for Public Enterprise (Mrs. O'Rourke)

I thank Deputy Enright for the courageous way he spelt out the position. It is not often in Dáil Éireann or outside it that one hears the facts of a case. I know this is not the first occasion on which he has raised this matter in the House. He has tabled questions on it and raised it in other ways. My Cabinet colleague, Deputy Cowen, and I discussed this matter over several months, throughout the difficulties that ensued and during a time when we thought the matter would be settled but it was not.

The Deputy is correct in stating that for the past 40 years Ferbane power station has been critical to the economic life of west Offaly. That number of years is roughly the length of the normal life of a power station. A feasibility study managed by a steering group comprising representatives of the Department, the ESB, Bord na Móna and the other concerned groups was carried out on the station during 1995-6. It was finalised on 31 May 1996 and it concluded that the refurbishment of Unit 4 at Ferbane and its operation with competitive manning levels was the best way forward. The ESB board endorsed the findings of the study and decided to proceed with the refurbishment. We know about the directive that will come.

Since the announcement of the refurbishment work nearly two years ago the ESB concluded the necessary tendering process for the procurement of works and equipment. Issues concerning the recovery of costs have also been agreed with my Department. However, it has not been possible to reach agreement with a small number of the workforce at Ferbane to implement the changes agreed in the CCR, a key condition of the ESB board.

ESB management notified the station's workforce on 24 September that in the absence of an agreement with all the staff it could not proceed with the refurbishment. Mr. Dalton travelled to the station and said on that occasion that a recommendation would be put to the board at the next meeting. I met Mr. Dalton on Monday morning in my office and we discussed the matter at length. During the summer I met representatives of the unions formally in Dublin and informally each weekend at home in Athlone, mostly on a Saturday and sometimes on a Sunday with the exception of the two weeks I took holidays.

In my public life dealing with matters or being on the periphery when somebody else was dealing with a case, I have never experienced the difficulties that are arising in this case. However, I am optimistic by nature, I believe all is not lost and that the closure of the station is not inevitable. Why should it be? Why should this threat hang over a lovely, lively and bustling town like Ferbane? The town deserves the investment promised by the ESB, but it cannot proceed unless it gets what was signed for in the CCR. The majority of the staff are prepared to implement the changes agreed and I call on the remainder to also agree to the necessary changes. That is all that is required. Such a move is in the best interest of the local community in Ferbane which is so dependent on the ESB and Bord na Móna for its economic well-being. I understand the chairman of the ESB Joint Industrial Council has invited the relevant unions involved and the ESB management to a meeting tomorrow to discuss the issue and we all await the outcome of those deliberations.

I hope all the parties involved will act in a straightforward and open manner and that they will urgently seek to try to reconcile their differences. As we approach the next millennium, it is amazing that there is such an impasse. The investment of £16 million in the station would guarantee its future for up to 20 years and provide direct and ancillary employment for many families. That would make such a difference to Ferbane, which none of us wants to see sunk in gloom and depression as it is at present.

I appreciate the Deputy's input into this debate. My ministerial colleague, Deputy Cowen, and I will continue to discuss this case. I welcome the bi-partisan support in dealing with it. Senator Gallagher has also talked to me and has been active in lending his support. I know Offaly County Council met yesterday. I telephoned the chairman this morning and asked him to convey that I would be pleased to meet the members.

Our only chance is to be united in our solidarity. We want the investment to be made. We appreciate that the ESB cannot make that investment until the outstanding issues related to the CCR, to which the workforce have signed and agreed, are satisfactorily dealt with. I hope and pray that in the immediate days ahead there will be a reasonable resolution of what seems to be an intractable problem.