Brendan Smith (Cavan-Monaghan, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources the action he is taking to secure a viable future for Bórd na Mona and its workforce; and if he will make a statement on the matter. [53269/12]

Pat Rabbitte (Dublin South West, Labour)
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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.

Michael Moynihan (Cork North West, Fianna Fail)
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The issues that arise for Bord na Móna concern the traditional industries. Some claim the company's diversification, including into waste management and renewable energy generation, has put a considerable strain and its resources and profit-making ability, nothwithstanding that this was a disastrous year. Internal issues arise also. Anecdotally, we hear problems arise over morale and confidence in the management style. Ultimately, the workforce, particularly that in the midlands where the company has had a considerable positive economic influence over the years, is asking whether Bord na Móna is one of the State assets to be sold by the Minister. Will the Minister comment on the company's workforce?

Pat Rabbitte (Dublin South West, Labour)
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I do not believe Bord na Móna is lined up in the State assets disposal programme, nor should it be. It is true, however, that the company is running out of turf and that diversification is, therefore, the way forward. In this regard, the company has been very successful in some of its operations. The Deputy put his finger on an aspect that was not successful thus far, namely, the waste management initiative. However, if he researches the matter, he will find particular reasons the waste sector in Ireland generally, and not just in Bord na Móna, has got itself into some difficulties. Without making a political point, I contend that if the Deputy has time to study the matter, he will find that the previous Government's procrastination on the future strategy for waste management did not help the company. This needs to be said in defence of the company.

The Deputy asked me about anecdotal remarks on morale in the company and confidence in the management. I have heard these anecdotal remarks but I am bound to say that, as recently as a couple or three weeks ago, I met the board, senior management and worker directors for more than two hours to discuss the future strategy for the company and interrogate proposals it has for the future. I support the diversification strategy and do not believe there is any other card that the company can play. It is true that morale has been affected by the fact that we had this year the worst summer, and consequently the worst peat harvest, since the company was founded. Morale is not helped by the resulting lay-offs and what are euphemistically called the mitigation measures that had to be put in place. It is most unfortunate that we had the kind of summer we had. As Deputy Moynihan knows, it also had an impact on the farming community. It was difficult generally.