Michael Lowry (Tipperary North, Independent)
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I welcome the opportunity to raise this issue of paramount importance to the 80 permanent staff at the Bord na Móna briquette plant at Littleton and the bog production area at Templetuohy. Littleton is located in the heart of County Tipperary and has always been closely associated with Bord na Móna and the briquette factory. The factory has been part of the community since it opened in 1981 and has proved to be the lifeblood of the local rural economy, providing quality employment and invaluable community support and delivering a degree of job security in an area that is otherwise devoid of industry.

Sadly, after 35 years of providing a steady income for countless families, staff were informed last week that Littleton's production facility is to close from 29 April until the middle of August, with a roster providing for a skeleton staff over a 14-week period. This means workers will face a minimum of eight weeks being laid off. Moreover, staff have been informed that two-day working weeks may be enforced. They were told these measures are being undertaken as a cost-saving exercise. These savage cuts to pay and conditions will have a devastating impact on the income of permanent staff and consign them to financial hardship.

There are no conceivable grounds for such drastic action by Bord na Móna. The company is profitable, making a profit of €50 million on its peat-production activity last year and an anticipated profit of €40 million in 2015. The Littleton plant itself is also doing well, with an estimated profit last year of approximately €3 million. We have a situation where a profitable company is treating its workforce in a despicable way and transferring some of the costs of its employment obligations onto the Exchequer through the Department of Social Protection.

I commend the Minister for Jobs, Enterprise and Innovation, Deputy Richard Bruton, on his recent announcement, to much fanfare, of a Government rural investment initiative to maximise employment and revitalise local economies. However, in the context of what is happening at Bord na Móna in Littleton, the Minister's statements in this regard are ridiculous, meaningless and hollow.

If the Government is serious about supporting rural industry, it must move immediately to assist Bord na Móna to protect its employees by addressing, first, the issue of carbon tax and, second, the ESB's public service obligation on financial subsidies.

I ask the Government to tell Bord na Móna management that its slash and burn approach will lead to human carnage and actions that are unacceptable. The Government must insist that Bord na Móna changes direction and involves itself in meaningful negotiations with the group of unions to find a different approach and reach agreement on contentious issues.

Noel Coonan (Tipperary North, Fine Gael)
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I am glad to have this opportunity to speak on this matter and I thank the Ceann Comhairle for selecting it. As Deputy Lowry said, it is a hugely important issue in the locality. When it is combined with the effect of the closure of the Lisheen Mine with a possible loss of jobs for 400 people, we are talking about 500 people in the area losing their jobs. It is a huge blow to the area. I call on the Minister of State present along with his colleagues, the Minister with responsibility for energy and the Minister with responsibility for employment to take a hands-on approach to this matter and to speak directly to the company, which is heavily subsidised with taxpayers' money and also by the ESB, to ensure the future of the briquette factory in Littleton.

We have been told that part of the reason for this decision is due to the stockpile of briquettes that are in the country. Even though this is not directly in the Minister of State's remit, he has responsibility for European affairs and the carbon tax is an issue in that context. We are being flooded with coal imported from the North which is not subject to carbon tax. It is estimated that the carbon tax has added 50 cent to a bale of briquettes. In this context, we are talking about fair trade and equal opportunity for all. I ask the Minister of State to take up this issue to ensure that people in rural Ireland are not being penalised.

The briquette factory in Croghan, near Edenderry, closed in the 1990s. We were then left with two factories. We wish to safeguard these, particularly the factory in Littleton, which is creating meaningful employment in the area. We want to ensure its viability into the future.

What action is the Minister of State and the Government going to take to preserve the jobs in the briquette factory in Littleton, County Tipperary? Are they going to have a meaningful hands-on working relationship with Bord na Móna whereby they will call in the management and ask it about the way it is treating the workers who have given genuine service for many years? The workers were told there was no employment for them for approximately four to five months in the height of summer. They were told they would be deployed to other maintenance jobs or to upgrading the factory but either way, everybody who is in employment in Littleton will be affected by this. I call on the Minister of State to press the Government takes adequate action to ensure the immediate viability of these jobs and the security, safety and guarantee of those jobs into the future.

Dara Murphy (Cork North Central, Fine Gael)
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I thank Deputies Lowry and Coonan for raising this very important matter of great concern for the people involved. As they will be aware, Bord na Móna is facing significant business challenges in the context of the deregulation of the electricity market and increasingly competitive and challenging environments across all its business areas. In order to ensure its continued success, the company is implementing a programme to transform all areas of its operations and structure, the key objective of which is to improve business effectiveness and efficiency.

The specific matter raised by both Deputies in regard to terms and conditions of employment is an operational matter for the company and not one in which the Minister, Deputy White, has any role or function. He passes on his apologies for not being here. Furthermore, taxation policy, including the carbon tax, its implementation and impact, is a matter for the Minister for Finance and not one in which the Minister has any function.

However, I understand that the Minister, Deputy White, has raised the wider issue in regard to peat production with Bord na Móna and has been advised that the temporary cessation of peat briquette production is confined to the two factories at Littleton, County Tipperary and Derrinlough, County Offaly. Both factories are peat-based manufacturing plants, producing Bord na Móna peat briquettes and run on a 24-7 basis during production. Each year, based on sales requirements, Bord na Móna implements a specific production plan for each of its factories. The plan normally includes periods where production ceases, there is maintenance overhaul and where there is annual leave, including a break in production over the Christmas period without, normally, loss to employees. I understand, however, that as a result of very mild weather in recent months, competitiveness challenges, a high private timber and sod turf supply and falling prices for home heating oil, the opportunity for the company to sell its current stocks is unfortunately very challenged this year.

As the Deputies will be aware, in December last, affected employees were informed of the seriousness of the stock situation at the factories and production temporarily ceased over the Christmas holiday period. While production recommenced in early January, it became apparent by early February that stocks were again building up due to continuing lower sales levels. Formal communications took place with staff and union representatives in February and the company advised that production at both plants would cease at the end of March until early September. It was further agreed that plans were to be prepared for each factory to manage the shut-down in the most efficient manner possible.

The company is running the normal maintenance overhaul at both plants during April and no employees are laid off. Following this, holiday leave will be scheduled. Thereafter, I understand that unfortunately it will be necessary to lay off a number of staff in June and July. Management is actively considering all options to mitigate the impact on directly affected workers through redeployment of people to security duties, bog operations, other areas of the company or outside contract work as well.

At all stages staff and union representatives have been kept informed of the situation. The restart of briquette production is scheduled for 10 September next. In the meantime the company is actively reviewing new product development opportunities and engaging with local management and staff on trying to grow new markets for peat products.

The Minister is aware of the seriousness of the situation and would encourage management and staff to work together in managing this very difficult period ahead while looking forward to the restart of production at the earliest possible date.

Michael Lowry (Tipperary North, Independent)
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There are two things the Government can do and for which it can take responsibility. The first is the fact that, as the Minister of State said, Bord na Móna is no longer competitive. The reason its products such as briquettes and peatland products are no longer competitive is that they are subject to the carbon tax. That tax was introduced in budget 2010. Following discussions with the then Government I secured an exemption for peat products. That exemption was lifted in the budget of 2013 when the Government imposed the tax at €10 per tonne. It doubled the tax in the 2014 budget to €20 per tonne. Effectively, a bale of briquettes has a carbon tax levy of 56 cent. It makes those products uncompetitive compared to Northern Ireland, where coal and briquettes are not subject to a carbon tax. As Deputy Coonan said, coal is being imported at low prices with which our Bord na Móna products cannot compete. The Government can move on that and it can also move on the public service obligation that the ESB has, which is denying Bord na Móna €23 million per annum.

Noel Coonan (Tipperary North, Fine Gael)
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I am disappointed with the Minister of State's response in that he said this is a matter for the Minister for Finance and not the Minister. That is poor consolidation to workers who will be unemployed for three months during the summer. This is the reason I call for a co-ordinated approach by the Government, including the Minister for Finance, the Minister with responsibility for energy, the Minister with responsibility for employment and the Minister of State present, to ensure there is fair competition when we are competing with the North and being flooded with material from the North that is not subject to a carbon tax. I ask the Minister of State to take a hands-on approach to try and resolve this problem.

It is a question of the cost of production which the Government is certainly in a position to address with Bord na Móna. If there is a will, there is a way. We ask the Minister to have the will and a way can then be found.

Dara Murphy (Cork North Central, Fine Gael)
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The Government is more than aware of the seriousness of the issue. The matter of a carbon tax is one for the Minister for Finance. There has been an unfortunate combination of events, with a supply of very low-cost competing products, as well as a mild winter. As I said, this is a matter for the company in the first instance, but the Minister will continue to encourage management and unions to try to find the best possible outcome in what is a very difficult situation. I thank the Deputies for bringing the matter to our attention.