Mr. Kevin Mahon:

Our company has been producing its own compost and wood fibre since 1991. In Ireland, we have been using bark and wood fibre since about 2004. We have been making our own wood fibre on site since 2013. I acknowledge what Deputy Michael Collins said that there are challenges when using these alternative materials. That is why peat moss has been the material of choice since the 1960s. The qualities of peat moss are that it has very good water-holding capacity and nutrient buffering. When these alternatives are introduced, they do not hold the water and nutrients as well. Typically, it is necessary to water at least 30% more and use about one third more fertiliser because there is more leaching. There are negative environmental consequences to diluting these alternatives.

The more immediate problem we have with the alternatives if no peat is available is that the alternatives are equally becoming unavailable. For example, for our wood fibre production we require wood chips which is a residue from the sawmills. Back in July we were getting ten loads a week from our main supplier. This has been reduced to two loads per week because of the energy requirements for making wood pellets for fuel for heating. Also because of the downturn in the construction industry, less wood is being processed meaning that less residual material is available.

Even before this, there was not sufficient bark to replace all the peat required in the country. In addition, as Mr. Gleeson said, none of these alternatives, with the possible exception of coir, can be used 100%. These alternatives can only be used when diluted with something else. The only other thing we really have in any volume is peat moss.

People talk about green compost. There are big problems with consistency in green compost. It is not possible to rely on the sourcing of it. It contains contaminants which can be glass, faeces, needles, plastics and all sorts unless the source material is very well controlled. Some 40% of our product goes into food production. That is a major problem for us. The other advantage for peat is that growers are dealing with a virgin product that has not had any animals grazing on it and has not had any litter. The green waste is collected from municipal sites and, of course, this will include whatever debris is left in these municipal sites.

The other issue is cost. The price of wood chip and bark is linked to the cost of energy. Yesterday the Irish Farmers' Journalor Agriland- I cannot remember which - reported that Bord na Móna announced that it needs 1 million tonnes of biomass to fuel the power station in Edenderry. Where will it get that? It will be burning the same wood chips and bark that we want to supply people like Mr. Kieran Dunne and the Kildare growers. While we can go toe to toe with the energy industry to compete and buy the material, ultimately, energy is a more profitable business than horticulture.

The whole industry will come out as a loser in this battle. Coir is an excellent product that we bring in from India and Sri Lanka and is horrendously expensive. It is a residual of the coconut industry. Coconuts are primarily produced for their oil and flesh. The coir we use is the husk. As coconut oil is now considered in the same category as palm oil, unfortunately coir can be detrimental if it is not sustainably harvested. Palm oil has a bad name but unfortunately we are losing another excellent product because we now have customers asking for products that are not just peat-free but also coir-free. It is a practical impossibility, without coir and peat, to produce a good quality growing media.

The other issue with the alternatives is that peat has a very low pH so it is suitable for any sort of crop. The right amount of lime can be added so it is suitable for ericaceous crops and heathers which have low pH requirements. All these alternatives start off with a high pH and there are certain crops that are not suitable for growing in them. Heathers will not grow very well in a 100% coir-mix because the pH is too high. That is probably enough said about alternatives unless there are any other questions.