Dáil debates

Tuesday, 17 September 2019

Saincheisteanna Tráthúla - Topical Issue Debate

Energy Production

7:05 pm

Photo of Marcella Corcoran KennedyMarcella Corcoran Kennedy (Offaly, Fine Gael) | Oireachtas source

I do not need to tell the Minister that climate action is an enormous challenge for our country and, indeed, our planet. Warnings of increasing global temperatures have been made by scientists over the past number of decades. We can see ourselves that the climate is changing and we have been challenged to rethink how society will function through the changes that we as individuals, communities, business and industry must make.

I am from west Offaly, brought up in Belmont and Ferbane. Offaly is a county where energy generation has been a part of the fabric of life for decades since the establishment of Bord na Móna and the building of the ESB power stations across the county. One third of our land mass comprises peat so it is no surprise that peat harvesting for energy generation was focused there. Offaly experienced less emigration than many other counties in the 1950s due to the number of jobs available in Bord na Móna and the ESB. In parts of the midlands, small towns and villages grew rapidly when houses were built for Bord na Móna and ESB employees. The staff and their families contributed both economically and socially to their communities. As such, Bord na Móna has been an integral part of the commercial and social development of the midlands for decades, creating significant employment in the region. Employment peaked in Bord na Móna at 7,000 in the early 1980s and the company now provides approximately 1,500 direct jobs which in turn support at least another 1,800 indirect jobs. Consequently, Bord na Móna holds an iconic status in the midlands, particularly in my own county of Offaly, and is part of the social glue of many local communities.

The transition from peat harvesting in the midlands has been flagged for many years and it has been accepted by Bord na Móna and ESB workers that electricity generation would be peat free by 2027. The planned managed transition out of peat has been significantly impacted and complicated by the recent An Bord Pleanála decision to refuse planning for the west Offaly power station in Shannonbridge beyond the end of 2020. The application sought planning permission for the plant to co-fire peat and biomass until the end of 2027. The expectation was that, from early 2020, the plant would operate by gradually reducing the volumes of peat and increasing volumes of biomass so that, by the end of 2027, the station would be fuelled exclusively by biomass. This decision has huge implications for the workers, their families and communities. It has all the hallmarks of a potentially devastating blow to Offaly and the wider midlands area. This matter must be resolved for the protection of the workers and their families and a solution must urgently be found.

The Government and the EU institutions have all committed to a just transition for workers and it is an imperative that action is taken on this immediately. This will have significant implications for the wider economy and I repeat my call on the ESB and Bord na Móna to communicate in an open and transparent way with workers about this situation. Uncertainty and speculation cannot be allowed to reign and, to this end, I ask the Minister to consider meeting with the Bord na Móna group of unions. I understand that they have proposals on the work required to carry out the rehabilitation and restoration of former peat production areas. I will not go into the reasons for the An Bord Pleanála decision but suffice to say that I hope the ESB will seek leave to apply for judicial review of the decision. Time is running out and is of the essence.

There are huge concerns at local government level in Offaly as to the financial implications for Offaly County Council's rate base in the county. The rate base in recent years has remained static but it is of huge concern that, at present, the ESB's west Offaly power station and Bord na Móna's Edenderry power plant account for just over 25% of the county's rate base. This has the potential to leave a €4.5 million hole in the council's budget.

Offaly has made efforts to increase its own revenues locally with the local county councillors making a decision yesterday to increase the local property tax which will mean that 78% of households will pay no more than €33 extra per annum, but cumulatively it will make a considerable difference locally.

We are doing what we can at local level but Offaly and other midland counties require urgent action from the Government and our EU partners. We are being disproportionately impacted by the decarbonisation transition and will require financial assistance to allow Offaly make this transition.

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