Bord na Móna job losses
Deputy Cowen raised the impact of Bord na Móna’s accelerated decarbonisation on 430 workers and midlands communities. The Tánaiste said the company should pursue sustainable long-term jobs, welcomed voluntary redundancies, and would look into the ESB application.
Yesterday was far from a good day for 430 Bord na Móna staff, their families and their communities. The accelerated decarbonisation programme will move its traditional peat business into renewables and resource recovery and reduce the number of managerial, administrative and peat operations workers. We wish the company well in its efforts to diversify into wind, solar power and waste management, as well as in respect of the prospects for herbal medicine, aquaculture and cluster energy parks. These are all very commendable and worthwhile and we hope they will reap benefits. Immediately, however, we will see the closure of 17 bogs out of 63 across the counties of Offaly, Roscommon, Westmeath and Kildare. The workforce and communities understand the programme associated with decarbonisation and are committed to it. That was borne out by virtue of the workforce agreement with management at the Workplace Relations Commission, WRC, as long ago as 2016, when they signed up to a programme that would have seen the eradication of peat by 2030 and the diminishing of the workforce on those products over time, mainly as a consequence of the age profile associated with that sector of the business.
Bord na Móna was established in the 1940s with a particular remit to create jobs for the people of the midlands region in order that they might derive a living in their own region. The procedures that culminated in yesterday's announcement should not have put the Government on the back foot, but they have. That is why I put the following questions and observations to the Tánaiste. I welcome the comments I heard immediately after the announcement from the relevant Ministers. The first obligation is to those who will immediately lose their jobs, that there be adequate recompense and a package that meets their needs and requirements, and that it be to the fore of all immediate efforts.
Second, can the Government acknowledge the commitment made by ESB and ensure that it is carried out, namely, that it move forward with its planning operations for the cofuelling of peat and biomass at Lanesborough, Shannonbridge and Edenderry, which only has up to 2023? Can they be extended to 2025? They were waiting until last Monday week for the Government to eventually confirm it was Government policy for such cofuelling to continue.
My third question relates to a letter I sent to the Taoiseach earlier this week. Will the Government agree with my suggestion to put in place a just, sustainable forum with the relevant stakeholders available to participate, funded by ring-fenced funds from the carbon tax, savings as a result of the public service obligation being done away with in 2019 for the ESB plants and by the globalisation fund from the EU? I have also written to the relevant Commissioners in this regard.
It is a discussion I had briefly with the Minister for Finance during the negotiations on carbon tax. We did not necessarily agree with its increase except that it be used in the right manner rather than merely a revenue generating exercise for the State.
Comment on this
I acknowledge that yesterday was a difficult day for many Bord na Móna workers, their families and their communities. Bord na Móna has a responsibility, and is taking steps, to continue to provide good quality and sustainable jobs in the midlands for many years to come. I welcome that Bord na Móna has confirmed it is seeking redundancies on a voluntary basis. It is important that it puts in place a long-term plan for the midlands. It is planning to provide for long-term sustainable employment for the midlands, including 400 to 500 jobs in new areas of business, such as renewable energy and resource recovery. All relevant State supports will be made available to the workers impacted by yesterday's announcements. Bord na Móna also will provide additional support to workers who opt for redundancy, including reskilling opportunities when they are asked for. Bord na Móna will also engage in extensive consultation with workers in coming weeks, which will include a series of town hall meetings with senior management.
The midlands has had strong employment growth in recent years, I am glad to say, with 15,300 extra people working in the midlands since 2015. There has been a series of positive jobs announcements in recent years and we have every reason to believe that will continue. I remember well that when Deputy Bruton was Minister with responsibility in the area, he focused on an Action Plan for Jobs in particular for parts of Ireland that needed jobs focus at the time, in which the midlands was a large part.
This is a difficult time for families and individuals who face choices. I am confident that Bord na Móna will offer a generous and supportive package to workers who choose to take a redundancy package. The agencies of the State will work with Bord na Móna and the workers involved to help them reskill, where wanted, to ensure that new job opportunities are there and that Bord na Móna itself, which has been planning for this transition for many years and has been communicating with its workers to that effect, will also ensure that the job opportunities it provides are prioritised for workers who may have difficult choices to make in the coming weeks and months.
On the Deputy's suggestion to establish a forum, the Government would be willing to do whatever is constructive and necessary in terms of giving reassurance that in the transition to a low-carbon economy, which does and will impact on companies and work forces and energy policy in particular as well as other sectors, that we work with people to ensure that people can plan for, deal with and manage in a way which does not undermine their incomes.
Comment on this
The local authorities of Offaly, Westmeath, Roscommon and Kildare will be holding emergency meetings next week. That is because the 15,000 new jobs to which the Tánaiste referred are not very visible on the ground or in that region. I acknowledge the national figures are welcome but most those jobs created for people in the midlands require them to commute to Dublin. We are talking about midlands-specific jobs for midlands-specific people. Up to 450 jobs are being lost. I have asked the Tánaiste a question and he has responded that he agrees with such a forum. If so, will he and his Cabinet put the tools and infrastructure in place to make it real?
Will the Government commit the funds I have asked for to make this real? Will it provide an enterprise and innovation fund to give the midlands the chance to emerge from this? I want answers to those questions.
The Tánaiste mentioned that there will be 14,000 or 15,000 new jobs. My children and others like them have part-time jobs to supplement the cost of their education. They are registered with the Revenue and so these are deemed to be new jobs. I am thankful they have them. However, we are talking about 450 specific jobs. The knock-on effect on our region will be catastrophic. There have been infrastructural improvements in terms of roads and transport links with major cities, which of course has benefitted the area. However, it is now time for this Government to provide a subvention for the area. It must put this forum in place, and make sure that it has teeth and money so that it will have an effect.
Comment on this
I said that the Government will be open to any constructive suggestions. It will consider them and follow a policy that is in the best interests of people living in the midlands. I do not want to get into an argument with the Deputy over where the 15,000 extra jobs have come from, but they are jobs in the midlands, not Dublin, which people in the midlands can drive to and work at. We are taking a series of measures, and have reinforced them in the recent budget, in terms of rural development and rural regeneration. That might involve the targeting of different rural towns with the rural regeneration fund or structural targeted money through Enterprise Ireland via local enterprise offices to make sure that jobs growth is not based solely in big cities but is spread across the midlands and other parts of rural Ireland as well. We will continue to strive for that. I accept that this is a challenge for the midlands. Bord na Móna has been a fantastic employer across multiple counties and will be in the future. Yesterday a voluntary redundancy programme was announced. Workers in Bord na Móna will have to make choices. They will, I hope, be offered generous packages. This is part of the transition towards a more sustainable future in terms of how we produce power in Ireland.
The Government will continue to work with its State companies where appropriate, but also directly with people who are affected by the choices they are being offered at the moment, to ensure that employment remains strong and continues to grow across the midlands.