Dáil debates

Thursday, 20 February 2025

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Bord na Móna

3:30 am

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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72. To ask the Minister for Communications, Climate Action and Environment if he is aware of the proposed sale of Bord na Móna Recycling; if he has met with it to discuss this sale; the measures taken to ensure the protection of jobs and pensions; and if he will make a statement on the matter. [7042/25]

Photo of Ciarán AhernCiarán Ahern (Dublin South West, Labour)
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73. To ask the Minister for Communications, Climate Action and Environment if he intends to intervene to halt the privatisation of Bord na Móna; and if he will make a statement on the matter. [7037/25]

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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75. To ask the Minister for Communications, Climate Action and Environment to clarify his plans to sell Bord na Móna Recycling; and if he will make a statement on the matter. [7031/25]

Photo of Ruairí Ó MurchúRuairí Ó Murchú (Louth, Sinn Fein)
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Questions Nos. 72 and 73 are grouped, but I thought there used to be a protection on priority questions.

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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If they are grouped because we are raising the same issue, what are the timings for it? How does it-----

Photo of Ruairí Ó MurchúRuairí Ó Murchú (Louth, Sinn Fein)
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Outside the initial 30 seconds to ask a question, you are all given the same amount of added time. It is 18.5 minutes altogether.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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My response will be six minutes for three questions. I asked about this group. It is the first time I have seen priority questions grouped. We queried that yesterday and apparently it is appropriate. We might work that out post this round of questions.

Photo of Ruairí Ó MurchúRuairí Ó Murchú (Louth, Sinn Fein)
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It has happened a couple of times in the past while but did not previously.

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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Is the Minister aware of the sale of Bord na Móna Recycling? There is a lot of concern about this. Has he met with the board to discuss the sale? What measures are being taken to ensure the protection of jobs and pensions? Will he make a statement on the matter?

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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I thank the Deputy for this important question. I propose to take Questions Nos. 72, 73 and 75 together.

Bord na Móna is a commercial semi-State under the aegis of the Department of the Environment, Climate and Communications, established under the Turf Development Act 1998. Bord na Móna is a corporate body and a separate legal entity to the Department, as Members will know. The board and management of Bord na Móna are accountable for the strategic direction and management of the organisation. My Department is responsible for the corporate governance oversight of Bord na Móna, including the provision of consents relating to certain activities. I will return to that in a moment.

I intend to meet with the chair of the board in the coming weeks, I hope next week, to discuss all governance matters, including this matter. Bord na Móna's brown to green energy strategy has seen the company conclude all former peat operations and use of peat as an energy source in its operations and succeed in the delivery of renewable energy infrastructure at scale. Bord na Móna has transitioned from the largest fossil fuel provider, previously emitting 10 million tonnes of CO2 per year, to a leading renewable energy provider. Bord na Móna continues its transition into a climate solutions company, with a focus on renewable energy and peatlands restoration, committed to helping Ireland achieve its renewable target by 2030 and carbon neutrality by 2050, which we all support.

Bord na Móna has commenced development of a €2.7 billion pipeline of renewable energy projects across wind, solar and hydrogen to deliver 3.5 TWh of renewable energy by 2030 and has delivered a 1 GW pipeline of renewable energy projects, generating 1.7 TWh of energy powering the equivalent of 350,000 homes. I state that to show where the company is going and its direction. I commend it on the work that is there. It has developed amenities as part of its infrastructure projects, including facilities for park runs, educational school tours and sensory gardens, and contributes €1.2 million annually to communities through community benefit funds, near neighbour schemes, scholarships and grants. The board has commenced the largest peatland rehabilitation programme in Europe, potentially securing storage of up to 100 million tonnes of carbon, which also enhances biodiversity and enables amenities. Bord na Móna has rehabilitated approximately 18,000 ha to date.

The board has transitioned employees from primarily operatives in peatland operations to a skilled workforce focusing on renewable energy, peatlands rehabilitation and biodiversity. As part of that transition, Bord na Móna has upskilled employees. For example, employees previously employed in peat operations now work as community liaison representatives on renewable energy projects. The board has significantly invested in just transition initiatives, such as the Accelerate Green programme based in the midlands, which continue to foster innovation and sustainability leadership across the Irish business community.

Companies on the programme span industries such as renewable energy, land management and biodiversity solutions. Since its inception, the programme has supported 60 companies, with many achieving substantial growth and industry recognition. To date, more than 600 jobs have been enabled through the Accelerate Green programme. Bord na Móna has provided a new beginning, a start your own business programme, for former peat operations employees, which includes business mentoring and support to develop a business plan. Twenty-three former employees completed this programme, exited the company and started their own businesses in the midlands. Collectively, those businesses are now generating more than 40 jobs.

Regarding Bord na Móna Recycling, the Department was made aware in 2024 that the company was undertaking a strategic review of this business. The board informed my Department on 7 February 2025 that after conducting the strategic review, it proposes - I want to be clear on that - to sell its shares in Bord na Móna Recycling Limited to Irish recycling provider, KWD Recycling, a waste collection, recycling and recovery operator in the south west. Bord na Móna has stated that the proposed sale aligns with its strategic focus as a renewable energy business committed to helping Ireland to achieve its green energy targets by 2030 and, as I mentioned earlier, carbon neutrality by 2050. The board has stated that, in its view, the recycling business will no longer be part of Bord na Móna group if regulatory approval is received and Bord na Móna disposes of its shares in the company. Any proposal to sell part of Bord na Móna's business is subject to regulatory approval, including ministerial consent. That will be very carefully considered on receipt, which I have not got yet, of a formal request from Bord na Móna. While a formal request has not yet been received, my Department continues to engage in dialogue with Bord na Móna on all governance-related matters, including the aforementioned. My Department understands that the company has submitted documents to the Competition and Consumer Protection Commission, CCPC, on 7 February 2025 as part of the proposed sale process. It is my understanding that Bord na Móna is actively engaging with employees of Bord na Móna Recycling and has run a series of town hall meetings with its staff over the past week and is considering any questions raised during those meetings. It is understood that a proportion of Bord na Móna Recycling staff are in SIPTU. I have corresponded with SIPTU and I will come back on the supplementary on that, if I may. I received correspondence from SIPTU on 10 February 2025, which I reviewed and responded to.

Bord na Móna has stated that employees will continue to work for the recycling business, with no change to their contractual terms and conditions of employment.

3:40 am

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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I thank the Minister for his reply. Was there any consultation with the Minister prior to Bord na Móna taking the decision that it proposed to sell off the recycling business? The potential sale of the last public waste company flies in the face of all the latest expert opinion. I come from a place where all of the public waste collection companies were sold over the past 20 or 30 years. Can anybody say this has been a success? There have been recommendations from the Government's own Dublin task force, but rather than further entrenching a dysfunctional, privatised model, which has a history of being bad for workers, customers and the environment, as can be seen in the increase in fly-tipping over the past 20 years, we should follow international best practice and move back towards more public ownership. It is within the Minister's gift to stop the sale. We met representatives from SIPTU last week who said there were serious risks to Bord na Móna Recycling. Nothing is guaranteed for the workers, not their working conditions, pensions or even their jobs. That is their concern and I am sure the Minister is aware of that. Bord na Móna makes massive profits. Will the Minister intervene to halt this sale?

Photo of Ciarán AhernCiarán Ahern (Dublin South West, Labour)
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As Deputy Daly outlined, this is the last remaining domestic waste collection service in public control. We have big-picture concerns with the sale of this and what this means for the State provision of domestic waste collection services into the future. We also have very specific issues with the details of the sale. In this case, it is being sold by way of a share sale rather than an asset transfer, which avoids the application of the transfer of undertakings regulations, which would give some certainty to workers that their terms and conditions would be upheld after the sale. Far from being given any guarantee about their terms and conditions, the workers have been told they will be held as they are for the transition, but what guarantees has the Minister that the terms and conditions will not be downgraded, reduced or, in industry speak, "harmonised" following their integration into KWD Recycling?

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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I concur with my colleagues on this. There are concerns for the workers' futures and for the future of the industry. If this sale goes ahead, we will have a 100% privatised model of waste collection, which is not what anyone wants to see, particularly in the public arena. It also flies in the face of Government policy of a just transition. This was set up primarily to support the workers in Bord na Móna to transition from brown to green.

I have specific questions regarding the Minister's consent. He has repeatedly emphasised that it was Bord na Móna's view when he was reading out the issues. What is his view on it? What will he be taking into account when he gives his consent to this? It seems to me there is an assumption the Minister will give consent. If the CCPC was formally contacted on the same day as the Minister, it seems to me this is seen as a done deal. This undermines the Minister's position and his ability to row back on this. Perhaps the Minister could give me some information on that.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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I thank my colleagues for the questions. There is a process to be followed here. The original engagement with the Department was in 2024, as I read into the record. Bord na Móna submitted papers to the CCPC on 7 February, just short of two weeks ago. I have not received any request for ministerial consent, which would be required. I read in detail the correspondence dated 10 February that I received from SIPTU's divisional organiser. I acknowledged that and responded to that letter, outlining the process. I have not met the chair of the board or the chief executive yet. I intend to do so on a number of matters, which is why I read into the record where the company has gone and the success it has had in that transition it has made, which is good and which I fully support. I would take very seriously any decision on a potential disposal of a part of a company like this. I would assess the information I have to hand. I do intend to meet the organisation. I have corresponded on this already with the unions and SIPTU specifically, and I will continue that engagement. I have yet to form a view on this because I do not have all the information. I take on board what Deputies here have said. I do not see it as a fait accompli either.

The protection of current employee terms and conditions is very important, not just in a transitional phase but potentially into the future. I am fully aware that change can be a cause of concern for people when it comes to jobs and livelihoods. I will be engaging with the company but there is a process to be followed. I cannot intervene at this stage. The strategic review was done and engagement with the staff is happening. I would encourage that to be continued and to be done in a very detailed way to take on board any concerns. I have also outlined to the House the number of new companies and new jobs that have come from the transition to green skills Bord na Móna has made, which is something we support. I will keep Deputies advised of the progress with this. I intend to meet the board in the next week or so. I am aware of the concerns of the workers that have been outlined to me in the correspondence with SIPTU, which I have responded to.

Photo of Pa DalyPa Daly (Kerry, Sinn Fein)
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It seems to me, from a practical point of view rather than any ideological one, that the for-profit model of waste collection is not good for society.

We must also address the broader issue of rising waste costs because the side-by-side model is bad for workers, it seems to be bad for the environment with all the extra fly-tipping, and it is bad for customers because most of them must keep a certain amount of money on account and must deal with a service charge every month or every six months.

The result of the privatisation has been that 23% of households in the State do not have a waste collection. This is because many people either cannot afford to, or do not want to, pay for waste collection. Illegal dumping costs more than €100 million per year to the State. Costs continue to rise. We saw the largest provider, Panda, increase charges to more than 300,000 customers by way above the rate of inflation. The bin company is also raising its half-yearly service charge. This is the inevitable consequence of increased privatisation. It is inevitable that the State or local authorities will take over refuse collection. Again, it is only a matter of time.

3:50 am

Photo of Ciarán AhernCiarán Ahern (Dublin South West, Labour)
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I thank the Minister and it is good to hear he is meeting the board in the coming weeks and that he shares our concern regarding the continuation of the terms and conditions if the sale is to proceed. We also have to look at to whom it is proposed to sell this part of the State company. Killarney Waste Disposal is an unlimited company. There is a complete lack of transparency with regard to its group structure, its financial health and its profitability. Its accounts are not published. We do not know where the profits are going. There is a reason companies opt for unlimited structure, which is that it gives them much less transparency. We want to know whether the Minister is happy this strategic State asset is being sold to a company that has been fined in the past year for failings in the provision of its services.

Photo of Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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I thank the Minister for his response. I am glad to hear this is not yet a done deal and the Minister still has serious consideration to give to it, including the fact he will consider the future for the workers, which is fundamentally important. We need to consider Ireland's position on our requirements to reduce waste. This country is way off and we will not meet our 2025 EU targets. We have a lot of work to do in the waste sector and this will only be done through a more public model. This has come out of the blue for many people. There were discussions last year but this was not in the programme for Government. It was not identified in any manifesto. There was no information on this prior to the election. When it becomes widely known, there will be a lot of concern.

I ask that the Minister uses the Oireachtas committee as a way to investigate and examine this issue from an Oireachtas perspective. I am not sure when the committee will be set up but this should be the first item it considers, after which it can make recommendations to the Minister for his consideration as he goes through the subsequent process and dialogue.

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal East, Fianna Fail)
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I thank the Deputies. I have taken on board what they have said and I have also taken on board the constructive manner in which it has been raised. To be clear, the board of management of Bord na Móna is responsible and accountable for the strategic direction and management of the organisation. It is a commercial State body and it will manage its operations. The piece with regard to consent sits in the Department. To be clear, I had no discussions late last year as it would have been my predecessor. I am not sure on what the State organisation had to advise the Department and my predecessor other than that it had gone through a strategic review.

Bord na Móna has done very well in many aspects of the transition to green energy and in transitioning the workforce. The just transition has worked well and I want to accelerate it. We have removed peat from our electricity system and this is something we welcome. It is now a big deliverer of renewable energies. Workers' rights and the terms and conditions they hold are very important and I do not take this lightly. To reiterate, I have noted very seriously the concerns raised by SIPTU. I have not yet had the opportunity to meet Bord na Móna on its strategic direction, the overall management and its plans as to how it will help the country with energy stability, energy security and green energy. This will also be on the agenda when I meet it. I will meet all of the agencies under the aegis of the Department and it will take some time to get through them.

I am aware that, right now, there is concern for the people who are working in the recycling company, but there is a process to be followed. As I have said, on 7 February, the CCPC received papers from the company. I have not been asked to give ministerial consent at this stage. I have to follow the process and I cannot intervene at this stage. This is being very honest. I am watching it very closely and carefully. With regard to how any future Oireachtas committee would deal with this, I will certainly look at it. I am not sure whether it is appropriate in this instance. It may be or it may not be. Certainty is required as soon as possible for those who work in the company. This is something I will impress upon the chair of the board and the management of Bord na Móna when I meet them. I do not want to see a process that drags out for months and months. I am sure that is not an atmosphere or environment that people would want to work in. I assure the Deputies I have taken on board their views. I also have my own views. I want to assess this in the round when I have all of the information available to me, which I do not yet at this stage.