asked the Minister for Energy if he will be having discussions with Bord na Móna concerning the review on the continuation of the building of the peat briquette factory at Derryfadda, Ballyforan.

13.

asked the Minister for Energy if he will give Bord na Mona permission to proceed with the proposed new briquette factory at Ballyforan in order to create employment and to meet the demand for supplies which are so urgently needed.

I propose to take Questions No. 8 and No. 13 together.

Bord na Mona decided last May that the Ballyforan briquette factory project which was suspended in May 1984 for a period of one year should continue to be deferred while still being kept under review. The basis for the board's decision was that the reasons which gave rise to the deferral of the project last year, namely, the inability of the market to absorb the output of Ballyforan at an economic price and the serious burden which further borrowing would place on all of Bord na Móna's operations, still exist. The effect of the very bad weather during 1985 on Bord na Móna's finances must also be taken into account. The question of discussions with Bord na Móna concerning the review of the project does not, therefore, arise at the present time but I will, of course, continue to have regular contact with the board concerning all of their operations.

Will the Minister say why it has taken so long to make a decision on this project which was approved by a Fianna Fáil Government in 1979? Will he not accept that it should have taken only a short time in May to decide the future of the project?

I have explained to the Deputy that the project is under ongoing review. Because of the inability of the market to absorb the output at an economic price and because of the overall question of the finances of Bord na Móna at present they are not going ahead with the project. I have asked the board for an ongoing review. If certain economic factors change in the future there may be a possibility of the factory being built but at present Bord na Móna do not consider it is in their best interest to build the factory in Derryfadda.

Is the Minister aware that there is a shortage of briquettes and that a reduced quota is now being brought into operation? My information from the western and northern counties is that the board are not able to meet the demand. The workshop in Derrinlough is now being closed and redundancies have been announced by the board. Does the Minister not realise that if the Ballyforan project had gone ahead this would not have arisen. I cannot understand the philosophy behind this decision.

The Deputy may not make a speech at Question Time.

It is very important. It affects the western and midland counties.

I am aware of the present market situation in relation to briquettes. I am sure the Deputy also knows that irrespective of how many briquette factories we had in the country this summer, Bord na Móna's production was down on previous years. Therefore, there would not have been enough milled peat for production as briquettes. It should be noted that this project would be very capital intensive and it would have to be justified on the basis of return on investment and in relation to the markets available for the product.

The Minister must be aware that there is a shortage of briquettes and that turf production is down this year.

Yes.

That was the excuse given a year ago when the Minister delayed the project in May 1984. Is that not all the more reason to allow the project to go ahead now?

I did not delay the project.

It was delayed after this Government got into office. The unions could tell him that this delay has cost an additional £3.7 million. They are exporting tonnes of milled peat from Derryfadda to the midlands because there is a shortage of milled peat. That material should be used in the area and give employment there.

It was a decision of Bord na Móna in May 1984 to defer the project. Until they come back to my Department with a project I will not be in a position to assess either the success prospects or the viability of a briquette factory at Derryfadda.

The Minister said that there was an inability in the market place to absorb this product but he has accepted that there is a shortage of peat and briquettes this year. This country is flooded at the moment by cheap imported briquettes. Has he any proposals under the latest Labour conceived baby, the National Development Corporation, to go ahead with the Ballyforan briquette project as a necessary contribution to the development of the western area?

There are no proposals at present to go ahead with the briquette factory at Ballyforan.

Is the Minister aware that lorries from Northern Ireland are coming down to Offaly to get supplies of briquettes? It is obvious that the demand is there. The project should go ahead because it would be viable. Will the Minister not agree that by going ahead we would be developing our own natural resources and creating employment? The closure of the Derrinlough workshop would not have taken place.

Under a Labour Minister.

The project should go ahead in the best interests of the economy and of creating employment.

The Minister has lost his socialist conscience.

Have the Government applied to the EC for assistance towards this project as we understand that assistance is available?

I do not have that information to hand but I will get it for the Deputy before the day is out.

The Minister has no interest in the matter.

With the permission of the Chair, I wish to raise this matter on the Adjournment. It is very unsatisfactory.

The Chair will communicate with the Deputy.