Mr. Tom Donnellan:

I thank the Chair and committee members for this opportunity to come here today and outline our just transition plans. For Bord na Móna, delivering a just transition is central to achieving an enduring climate action solution for Ireland and a positive outcome for our employees. Last year, we briefed the committee on our brown to green strategy, which gradually repositions our company away from peat towards renewables, recycling and other low-carbon businesses. At the time, I made clear this transition was dependent on the successful conclusion of the ESB's plan to co-fire its two midlands power stations with biomass and peat from 2020. We had prepared for an eventuality where the stations would not co-fire. This became a distinct possibility following An Bord Pleanála’s decision to refuse planning permission for the west Offaly station.

In response, we worked with our Department, the ESB and our stakeholders to develop a just transition plan for our people. This plan offers a choice between redeployment opportunities within Bord na Móna and, for a limited number, an option to leave. It avoids compulsory redundancies.

I compliment everyone involved in concluding the recent peat supply agreement between ourselves and the ESB. This avoids an immediate end to peat operations when the public service obligation, PSO, expires in December and guarantees continued peat supply employment through next year.

The plan we announced on 16 October accelerates elements in our brown to green strategy and looks beyond the closure of the ESB stations to the next few years when our peat harvest will reduce by approximately 93% from a recent high in 2013. To achieve our objective of sustainable employment, Bord na Móna will invest €1.6 billion over the next ten years and will create 100 new jobs and 150 indirect jobs in the development of renewable energy assets, 100 new jobs in new recycling operations, another 150 to 300 potential new jobs in new green businesses from our herb, birchwater and aquaculture projects and 210 redeployment opportunities in an accelerated and enhanced peatland rehabilitation programme.

The programme of rehabilitating our bogs will be supported by the PSO funding that the Minister and the Department recently announced and are progressing. We are developing detailed plans, which will be communicated to staff in the coming weeks. Our initial analysis has identified bog areas in five counties that will deliver 210 redeployment opportunities for our employees broken down by area as follows: 75 roles in the former Blackwater group of bogs in south Roscommon, east Galway and west Offaly, 30 roles in the Boora bogs in west Offaly, 54 roles in the Mountdillon group of bogs in north Roscommon and Longford and 51 roles in Derrygreenagh bogs in east Offaly and Kildare. In addition, the funds allocated in the budget for the rehabilitation of the National Parks and Wildlife Service, NPWS, peatlands means there is potential for further job opportunities for our employees. I consider Bord na Móna to be well positioned to tender successfully for at least some of the contracts for this rehabilitation activity.

Together, these will form a peatland rehabilitation programme of international importance that will yield significant benefits for Ireland in terms of biodiversity, carbon emissions mitigation and carbon sequestration. The investment programme and rehabilitation plans mean that people impacted by recent decisions will have a choice to be redeployed across Bord na Móna either into rehabilitation or our new business projects. For those who may wish to leave our company, we are allowing a limited number of new applications for our voluntary redundancy scheme. Training and reskilling was a priority of our transition programme last year, when we had 1,000 attendees at more than 100 courses and training events offered by the company.

Our comprehensive employee supports programme is open to all impacted employees. It is already under way and has been extremely well received by people across the company. Among other measures it includes training support open days and crossroads workshops. A total of 590 attendees have so far participated in more than 25 events, with 40 more events scheduled for the coming weeks. A training skills audit and analysis for every impacted employee is under way for more than 150 people. A retrofitting training programme is being designed with the assistance of the local education and training boards.

Some of our people have voiced concerns about the health of our pension schemes in light of recent developments. I have confirmed to our employees that these schemes are funded in line with the appropriate standards and the most recent actuarial assessment. I reiterate this to the committee and note it was made possible by additional contributions of more than €40 million by the company in recent years.

Bord na Móna welcomes the just transition announcements in budget 2020 and looks forward to working with the just transition commissioner, Mr. Kieran Mulvey. We will continue to work with all involved in the midlands regional transition forum, the Department and all our stakeholders. I also acknowledge the assistance we have received from the Minister and his officials in support of our plans. Decarbonisation represents a profound change for our country, for Bord na Móna and for our employees. A decade ago, peat accounted for 90% of our revenues. We are financially resilient and able to grow and transition our business. By 2025, 80% of our revenue will be from green, low-carbon, sustainable businesses, all in support of key climate and national policy objectives. I believe our plans for sustainable employment, employee choice and retraining are all key elements that demonstrate that a just transition is a reality for Bord na Móna's people.