Barry Cowen (Laois-Offaly, Fianna Fail) | Oireachtas source

I have three questions. We have been waiting for three or four weeks to discuss this very important issue. I might add that this is the Aer Lingus of the midlands. We are aware that plenty of time and effort is going into that area. I want to make sure the questions that are being asked during the course of that debate do not arise in this context at any future juncture.

I would like to ask Mr. Horgan about a significant issue that relates to briquettes. I know there are seasonal elements to that sector of the business. We are all aware this has historically been the case. We have had good summers in recent years, particularly last year. The company has suggested that the stockpile which now exists is sufficient to meet the demand the market is placing on it. That is why there have been closures. The big thing here is the carbon tax. When that tax was introduced, the previous Government gave a derogation to Bord na Móna and the briquette factories. I do not have to name names. It was given and it ensured the viability of this sector. It allowed the sector to compete competitively, especially with the market forces in the North. It was reinstated and doubled by this Government. That may be political. It is a political charge on my part. As I have said, the company has a responsibility to the shareholders. What negotiation or consultation takes place at governmental or ministerial level between the company and whoever holds that office at any given time? What consultation did Mr. Horgan have with the Minister on foot of this as it arose? Did he fight the implementation? Did he fight the doubling of it? Has Mr. Horgan spoken to them since? Has he highlighted the effect this has had on Bord na Móna's potential to compete in that marketplace? That and that alone is the kernel of the question as regards the future of that sector. That is my first question. I will try to speed up if I can.

Mr. Horgan raised some broader issues when he spoke about moving towards 2030. He and his management colleagues have sought cuts of up to €24 million per annum in relation to Bord na Móna activities. They have said that such cuts are necessary if the company is to be able to continue in existence beyond 2019. The ESB has said in recent weeks that it is committed to continuing the partnership between its plants and Bord na Móna plants for the supply of peat, regardless of whether it involves 100% peat fuel or some kind of co-fuel arrangement. Is it not strange that Mr. Horgan and his colleagues did not seek to meet, engage with and ultimately agree terms, conditions, contracts and the associated costs with the ESB? If they had reached some indication of what the price might be beyond 2019 and the public service obligation, perhaps they would be in a position to look at the costs and the sorts of reductions that might be necessary thereafter. I think they have put the cart before the horse. Mr. Horgan seems confused as he looks at me. I am saying that he has decided, before meeting ESB or agreeing a contract or a price, that cuts of €24 million are necessary. He does not yet know what the company's deal with the ESB will be. He does not know how long that contract will be, how much it will be worth or what effect it will have on the company's costs. I find that strange.

I will conclude by speaking about the mechanisms that were used after that decision was made to seek its implementation. As I said earlier, Mr. Horgan has much more experience and expertise in the industrial relations area than I have. He has much more knowledge than I have of the Labour Court, the Labour Relations Commission and all the other mechanisms that are available to resolve issues. I know, as do the people and communities I represent, that every effort made by the Government and the board over the years to effect change, meet the demands of market change, diversify and alter was done in consultation and consensus with the workforce. They very seldom went to the Labour Court. I would have expected that to be the case in this instance and in this period of the company's development, especially with somebody of Mr. Horgan's calibre in the position he is in. I understand there are nine or ten issues before the Labour Court. Believe it or not, morale is at an all-time low among the workforce regarding issues of pay and conditions. I hear a great deal of talk around the country about Dunnes Stores, zero-hour contracts and the difficulty being experienced by workforces in assuring their futures in that company and others. Many people have been asked or told to reapply for their jobs. When they have done so, they have found the pay and conditions within Bord na Móna vastly different from what they were before they reapplied. Pay cuts of 30% have been applied in some instances. I find it unbelievable that this has been allowed to evolve. I ask Mr. Horgan to explain to me, considering the role that he is expected to carry out in the interest of shareholders and as the Government's representative, how it is that almost every question asked of management and staff is ending up in the Labour Court.