Noel Dempsey (Meath, Fianna Fail)

I move amendment No. 2:

In page 3, line 9, before "AND" to insert the following:

", TO PROVIDE FOR THE AMENDMENT OF THE TURF DEVELOPMENT ACT 1998,".

The substantive amendment, No. 101, is to raise Bord na Móna's borrowing limit to €400 million. The upper limit of €100 million has remained unchanged since the passing of the Turf Development Act 1998.

The core business of Bord na Móna plc over the years has been the supply of peat and peat-fired electricity-generating stations owned by the ESB and the independent peat-fired power station at Edenderry. It also produces peat briquettes as an indigenous solid fuel for domestic purposes. That solid-fuel business was expanded to include coal and other domestic heating products. Bord na Móna has also developed a horticulture business producing peat-based products for use in the commercial and domestic markets.

While the company intends maintaining its peat and solid-fuel business, its strategy is to develop its interests in the renewable energy sector, including investment in wind, bio-fuels and possible waste-to-energy schemes. It also intends to expand the environmental business, specifically waste management, including landfill and composting, through organic growth and acquisition. It also has plans to expand its horticulture business.

That must all be financed through a mixture of own resources and borrowing, and for that reason the statutory borrowing limit must be increased, allowing it headroom. The increase in the borrowing limit will give the company greater commercial ability to develop its approved future strategic direction, including waste management and electricity generation through renewable sources. The important matter to note is that individual projects that require financing will obviously still have to be approved by the shareholder. Nothing changes there; this simply raises the limit to which the company may borrow.

See this speech in context