Dáil debates

Wednesday, 3 April 2019

Saincheisteanna Tráthúla - Topical Issue Debate

Electricity Generation

2:20 pm

Photo of Barry CowenBarry Cowen (Offaly, Fianna Fail) | Oireachtas source

I welcome the opportunity to update the Government and the House on what was termed by the CEO of Bord na Móna last October as the acceleration of decarbonisation. That acceleration has turned into a speed wobble.

There is an increasing number of bog closures. The initial announcement referred to 17. Last week, a further four were added to the list. There is an increasing number of redundancies. At the time of the announcement, we were told that the number would be in the region of 400. It is now at 600 plus. There is an increasing impact on local communities and a threat to the future of the co-firing plants at Shannonbridge, Lough Ree and Edenderry. There is no correlation between the income generated by the existing carbon tax, let along the multiple of four that is being discussed, and any benefit to my county of Offaly and the midlands region more widely, which are suffering the most from the decarbonisation programme. Allied to that, there has been no application by the Government to the European Globalisation Adjustment Fund or the coal regions in transition fund, which was set up last year, as promised. It took a visit to the European Commission by a local councillor in Offaly, Mr. Eamon Dooley, and me to find that out.

We sought and welcomed the Government's establishment of the just transition forum, but it lacks the teeth and money it needs to do the work it must. Notwithstanding that, we appreciate its combined efforts with Departments and the training funds of ETBs and Athlone IT, and the role played by local representatives in that process, to upskill, match skills and help.

However, I was disappointed to learn last week that discussions had been ongoing between Bord na Móna and the relevant Department on the subvention of biomass. Following the announcement, I was assured at an Oireachtas committee meeting by the CEO of Bord na Móna that, despite the obvious and glaring difficulties that might arise with the post-PSO pricing mechanism at ESB and the lack of incentives for biomass growing in Ireland, let alone imports from South Africa and elsewhere, Bord na Móna had included in its costings these variables, was happy and could give me and others the commitment that co-firing would continue. Alas, I learned last week after inquiring into the reason for the four bog closures that they were feeder bogs for co-firing at the three plants in question. Not only will 50 jobs associated with those bogs be lost, but their closure creates an obvious threat to the power plants themselves. That will have a major knock-on effect for communities.

The chief executive officer of Bord na Móna said at the time of the announcement that the company staff get the programme and the need for decarbonisation and the communities in Offaly and beyond recognise the need for transition. They had, however, hoped and would appreciate if it were a just transition. In order for it to be a just transition, the Government must match that effort and commitment with funding and provide real opportunities for alternative forms of employment to be found. That has unfortunately been seriously lacking to date.

I accept that the line Minister cannot be here today and that he will respond in writing in more detail next week. I also appreciate the Minister of State's efforts on this. Nonetheless, I would have thought that, far from waiting on a six-month report from the just transition forum, the Minister would listen to members of Fine Gael and the Government, whatever about listening to me. This is having a severe impact and is akin to the Government sitting on its hands or turning out the lights on Offaly and the midlands and allowing it to drift.

The carbon tax is Fianna Fáil policy and I hope it is the policy of this Government and any incoming Government to allow for the ring-fencing of revenue generated by carbon tax to be immediately directed and targeted at areas such as County Offaly which is feeling the impact of the transition.

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