Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

My Department and I have actively engaged with Bord na Móna on the challenges the company faces and its future strategy. I am strongly supportive of the company, which provides valuable employment in the midlands and is an important producer of energy and other services. The challenges include environmental constraints on the use of peat in power generation and horticultural products and the expiry of the public service obligation for peat-fired power generation in the coming years. These will contribute to the already declining market for peat.

Against this background, Bord na Móna has recognised the need to diversify its activities to secure a sustainable future and transition from dependence on its traditional peat business. In order to meet this challenge, the company has scoped out a new vision for its future sustainable development. This is published in "A New Contract with Nature". This strategy leverages Bord na Móna's landbank and the strength of its workforce to develop new businesses that will secure long-term employment. I fully support this diversification strategy.

This year has been a particularly challenging one for the company. The unparalleled weather conditions during the summer of 2012 resulted in just under 40% of Bord na Móna's expected peat harvest being secured. Bord na Móna management is taking decisive steps to manage these unprecedented circumstances to ensure the long-term viability of the company. It nevertheless highlights the importance of the company's ongoing diversification and growth strategy.

Bord na Móna and its employees, through the diversification strategy, have positioned the company to become a leading provider of sustainable solutions with particular potential in renewable power generation. I am pleased to announce that, earlier this week, I approved Bord na Móna's development of two very significant wind farms, in Mount Lucas and Bruckana. Once complete, these wind farms will contribute strongly to Bord na Móna's revenue and meeting Ireland's renewable energy targets. I am satisfied that Bord na Móna continues to focus on managing the current challenges and ensuring the long-term future of the company.

See this speech in context