John McGuinness (Carlow-Kilkenny, Fianna Fail)
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To ask the Minister for Communications, Energy and Natural Resources the measures he is taking to ensure a viable future for Bórd na Mona and its workforce; and if he will make a statement on the matter. [43697/12]

Pat Rabbitte (Dublin South West, Labour)
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Bord na Móna has long recognised the need to diversify its activities in order to secure a sustainable future and transition away from dependence on its traditional peat business. A number of factors, including 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, will contribute to the already declining market for peat.

The company has scoped out a new vision for the future sustainable development of Bord na Móna which is set out in its published “A New Contract with Nature” strategy, in order to meet the challenge of transitioning away from dependence on the declining market for peat and towards a more sustainable future. This strategy leverages Bord na Móna’s landbank and the strength of its workforce to develop new businesses which will secure long-term employment in this important State company.

The unparalleled weather conditions during the summer of 2012 resulted in only 35% - 40% of Bord na Móna’s expected harvest being secured. The exceptionally poor peat harvest has created very significant financial challenges for the company not just in the current period but in the months and years ahead and highlights the importance of the company’s ongoing diversification and growth strategy away from its core peat business. Bord na Móna management has taken and continues to take decisive steps to manage this unprecedented situation in order to ensure the long-term viability of the company. Bord na Móna and its employees, through its diversification strategy, have positioned the company to become a leading provider of sustainable solutions with particular potential in renewable power generation. I am satisfied that Bord na Móna continues to focus on managing the current challenges and ensuring the long term future of the company.