Dáil debates
Wednesday, 16 October 2019
Ceisteanna Eile - Other Questions
Electricity Generation
11:40 am
Denis Naughten (Roscommon-Galway, Independent)
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44. To ask the Minister for Communications, Climate Action and Environment the engagement he has had with the CEOs of Bord na Móna and the ESB on the future of West Offaly and Lough Ree power stations; and if he will make a statement on the matter. [41798/19]
Denis Naughten (Roscommon-Galway, Independent)
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We are facing an economic catastrophe across the midlands in 53 days when the public service obligation runs out. We need a clear, unambiguous statement from the Government reiterating its support for the co-firing of the two peat-fired power stations in Lanesborough and Shannonbridge with both peat and biomass. The Minister must immediately call in the chief executives of Bord na Móna and the ESB to get absolute clarity on the intention to submit a new planning application for West Offaly power station and to deal with the 3 million tonnes of milled peat that is currently on our bogs.
Richard Bruton (Dublin Bay North, Fine Gael)
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I thank the Deputy for raising this very important question. I have met the chief executives of both companies since the decision of An Bord Pleanála. I am in regular contact with them and their boards with regard to West Offaly power station. I have met public representatives, worker directors of Bord na Móna, the midlands regional transition team and the regional skills forum. I have also met representatives of the Irish Congress of Trade Unions, the Bord na Móna group of unions and the European Commission. All of this is being done with a view to planning the best outcome that we can.
As outlined previously, the ESB is continuing to consider the An Bord Pleanála decision that has been issued. It is no secret that it was a very strong decision in the way it was framed. Nonetheless, it has been Government strategy to have co-firing until 2028. We now must be in a position to plan for contingencies whereby that might not occur. That is the backdrop to the considerable work that has been done since July with the formation of a group within the Taoiseach's office to develop a just transition approach. The work that was announced by my colleague, the Minister for Finance, Deputy Donohoe, in the budget last week includes measures such as the just transition fund, the bog restoration and rehabilitation fund and the new model to group housing upgrades. These measures will be concentrated in the midlands and will support alternative employment, retraining and reskilling of workers and will support local communities and businesses in the midlands to adjust to the low carbon transition. We are continuing to consult and, as I have indicated, I will appoint a just transition commissioner to assist me in the work so that we can liaise with the various bodies at local level to ensure that this work is done in the most effective way possible.
11:50 am
Denis Naughten (Roscommon-Galway, Independent)
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I thank the Minister for his response. I acknowledge the announcement in the budget last week and the work being done on the just transition, which is very welcome. On 26 July, the Taoiseach stated with regard to Bord na Móna workers that there would be no job losses until the end of 2020. I want an answer from the Minister regarding seasonal workers in Bord na Móna. No work will be available for them next year so they need assurances now. The only people who can provide those assurances are the chief executives of the ESB and Bord na Móna. The Minister needs to bring both individuals before him.
On 2 October, the Minister and the Minister for Agriculture, Food and the Marine, Deputy Creed, announced that 15,000 ha of cutaway bug will be planted. This is very welcome. Will the Minister confirm that Bord na Móna staff will carry out the planting and that contractors will not be brought in?
Barry Cowen (Offaly, Fianna Fail)
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I appreciate the opportunity to speak on this issue. Notwithstanding the announcement last week on the provision of revenue from the carbon tax to the just transition fund, which will be for the regions, localities and communities affected by the loss of jobs in the area for years, the nub of the issue is that the public service obligation, PSO, payment will expire in the coming weeks. We do not believe a price has been set between the ESB and Bord na Móna in the absence of the PSO. The carbon credits and the costs associated with them have multiplied by four, since the ESB belatedly only hedged funds up to six months in advance. Next year is the last year it can burn peat alone. The Minister stated it is Government policy to co-fuel but it has not insisted on the ESB seeking a judicial review of the decision. I do not believe it is fair, appropriate or right just to state it is still being considered. The day for considering has come to an end and it is time for decisions to be taken and for people to be straight. It is time for the Minister, the Department, the ESB and Bord na Móna to be straight with me as a representative of the companies and the workforce to ensure progress is made and the prospects of those involved are seen to and that they are engaged with on where we go from here.
Richard Bruton (Dublin Bay North, Fine Gael)
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I thank the Deputies for their questions. I have attempted to be as straight as possible with everyone. I have met all of the bodies involved. I have also been straight on the question of judicial review. It would require a failure of procedure. It is different from considering whether a fresh planning application could succeed. The issue being evaluated by the ESB is whether a fresh application could succeed and not the issue of judicial review.
With regard to Bord na Móna managing the transition, we are looking at accelerated rehabilitation of the bogs owned by Bord na Móna as a way of providing additional work opportunities. As we announced in the budget, we are also looking at additional restoration of bogs that are not owned by Bord na Móna, which would provide work opportunities well-suited to the skills of workers in Bord na Móna. In addition, we will deliver the midlands aggregated scheme for retrofitting. We are seeking to make sure we work with the companies involved, namely, the ESB and Bord na Móna, to ensure that between their efforts at diversification and developing new outlets, and the efforts we are putting in, we will secure a just transition for the workers involved.
Denis Naughten (Roscommon-Galway, Independent)
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I ask for answers to the two questions on surety of work next year for the seasonal workers and on who will carry out the planting of the forestry, as announced in the joint venture between Bord na Móna and the ESB.
My understanding is that Bord na Móna is now borrowing on a day-to-day basis to pay salaries. If this is the case, where will it get money to carry out the rehabilitation that is required on the bogs? Will the State and Government provide financial assistance to it, as the State did in the past to An Post?
Barry Cowen (Offaly, Fianna Fail)
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Notwithstanding rehabilitation, which, of course, will follow in the event of no excavation taking place beyond next year, is the Minister aware of a post-PSO scenario on the pricing of peat between Bord na Móna and the ESB? Is he aware of the costs associated with carbon credits to be paid for by Bord na Móna? If so, will he give a commitment to the Dáil that after resubmission, if permission is forthcoming, within the formula there will still be the potential to harvest, burn and co-fuel beyond next year and beyond the licence it currently holds? It is incumbent on the Minister to reiterate vocally the commitment that is Government policy, contrary to what An Taisce might say, and that others should follow, rather than the likes of An Taisce leading and the Government following.
Richard Bruton (Dublin Bay North, Fine Gael)
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I am very conscious that these are independent commercial bodies and I do not direct them to do various things. They have responsibilities to their workers and stakeholders and to financial soundness. Of course, they continue to work with one another to secure a strong commercial relationship. In addition, I recognise that for seasonal workers we need to anticipate accelerated work on the bogs. This is why we are looking to work with Bord na Móna to see how the work will be funded. Accelerated work on the restoration of bogs would provide very useful opportunities.
On the issue the Deputy raised regarding planting trees, I have already brought it to the attention of the companies involved to see whether there are opportunities. I am working with the companies, which face commercial and other constraints. I seek to ensure on all fronts, including working with the European Commission, which has recognised peat as part of the coal transition network, that we can provide the necessary supports to deliver a just transition. I do not underestimate in any way the challenge but I seek to work with all of those involved to try to deliver the best possible outcome.