Noel Dempsey (Meath, Fianna Fail)

I move:

That, notwithstanding anything in Standing Orders, it be an instruction to the committee to which the Energy (Miscellaneous Provisions) Bill 2006 may be recommitted in respect of certain amendments, that it has power to make provision in the Bill to:

(a) provide for the conferring on Bord Gáis Éireann the power to create capital stock in amounts that are equal to the net assets of the board;

(b) provide for an increase in the statutory borrowing limit of Bord na Móna plc;

(c) provide for the treatment of lands affected by mines and former mines by rehabilitation of such lands and for the compulsory acquisition of lands for the purposes of such rehabilitation; and

(d) provide for the continued validity of planning or other consents for electricity, gas and other infrastructure developments upon commencement of the Planning and Development (Strategic Infrastructure) Act 2006;

and to change the name of the Bill to take account of these provisions.

I thank the Ceann Comhairle and his office for his advice in facilitating this motion. I had no difficulty in accepting that it is an important principle. The proposed amendment to Standing Orders will have my support when it goes before the Committee on Procedure and Privileges.

I intended to introduce the three proposed amendments on Committee Stage in June 2006. It was advised, however, that the amendments would be more appropriately introduced on Report Stage to provide an opportunity for all Members to debate the issues. The intention to introduce the proposed amendments on Report Stage was signalled on Committee Stage and drafts of the amendments, together with explanatory notes, have been provided in advance to each Member. I thank the Opposition Members for facilitating this.

The amendments relate to the issue of capital stock in Bord Gáis Éireann, BGE, the increase in the statutory borrowing limit of Bord na Móna plc, the rehabilitation of mine sites and to safeguard the status of works already approved or under way prior to commencement of the Planning and Development (Strategic Infrastructure) Act 2006.

I propose to insert a new section in the Gas Act 1976 that confers on BGE the power to create capital stock in amounts equal to the net assets of the board. It is Government policy to support the establishment of ESOPs in commercial State companies in appropriate cases. The basis for the policy is to provide an incentive to employees for enhancing the value of a company. Up to 5% shareholding in a company, subject to an upper limit of €38,000 per employee, may be provided in return for changes that give value to a company.

BGE is a statutory corporation that does not have shares in the way that a company set up under the Companies Acts would. This provision is necessary, therefore, in the absence of the introduction of legislation to convert BGE into a limited company and to give the board the power to create capital stock for the purposes of the ESOP. The board will only create capital stock for distribution of the appropriate share to employees when final agreement on the ESOP is reached.

I propose to raise the statutory borrowing limit of Bord na Móna plc to a new limit of €400 million. The upper limit of €127 million has remained unchanged since the passing of the Turf Development Act 1998. The core business of Bord na Móna plc has been the supply of peat to peat-fired electricity generating stations as well as producing peat-based products for use as domestic fuel and in horticulture. While the company intends maintaining these businesses, its future strategy is to develop interests in the renewable energy sector including investment in co-fuelling peat-fired power plant with biomass, windfarms and possible waste-to-energy. Bord na Móna also intends to develop a waste management facility, including landfill and composting.

The strategy will be financed through a mixture of own resources and debt. The statutory borrowing limit needs to be increased, therefore, to allow the company to borrow the required resources. An increase in the statutory borrowing limit does not constitute approval to increase actual borrowing to this limit. Shareholder interests will be protected at all times. Any proposal from the company will be subject to my prior approval and the approval of the Minister for Finance before any commitment to capital expenditure is made.

In June 2005 I secured Government approval for the rehabilitation of abandoned mine sites at Silvermines, County Tipperary, at a cost of €10.6 million over a four year period. North Tipperary County Council has agreed to undertake the rehabilitation works operating as an agent on behalf of the Department of Communications, Marine and Natural Resources. The rehabilitation programme for Silvermines cannot be carried through without this proposed legislation. It will provide powers to expend funds on mine projects, will grant powers of entry to lands and compulsory acquisition of lands where necessary and will give discretionary powers to recover State expenditure on rehabilitated lands. While it is anticipated the compulsory acquisition powers will not be required, it is safer to cover all eventualities. This will ensure the project can be planned and progressed without running the risk of encountering unnecessary and possibly lengthy delays.

The proposed legislation is an interim measure pending enactment of a comprehensive minerals development Bill, approved by the Government last June for priority drafting. This interim legislation will be repealed when the minerals development Bill is enacted. I recommend the amendment because the rehabilitation programme cannot proceed without the legislation. The local community in Silvermines has put up with a difficult environmental situation for long enough and I expect to see serious progress on the project next year.

I propose an amendment to the Planning and Development (Strategic Infrastructure) Act 2006. The effect would be to ensure that on commencement of the Planning and Development (Strategic Infrastructure) Act 2006, no additional consent requirements are superimposed where an application for approval has been made. The same applies to where a consent given in respect of electricity transmission lines, strategic gas infrastructure or State developments which require an environmental impact assessment. It is, therefore, essentially a clarifying amendment, which also safeguards against unnecessary duplication of applications for strategic gas infrastructure, in line with the intention of the Act.

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