Weather Events
1. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment if he will put financial support in place for businesses affected by Storm Éowyn; and if he will make a statement on the matter. [6593/25]
It is almost four weeks since Storm Éowyn battered the country. I wrote to the Minister early in February to ask that a scheme be put in place urgently to assist businesses affected by the storm. Last week Sinn Féin used its Private Members' business time to call for Government support to businesses. Why has no scheme been put in place to date? Businesses need to know today what help they can expect from the Government in the aftermath of the worst storm in history.
I wish Deputy Conway-Walsh the very best of luck in her role as spokesperson. I look forward to working with her. I had a very good relationship with her predecessor, Deputy O'Reilly. The Ministers of State, Deputies Smyth and Dillon, and I look forward to delivering the programme for Government in the years ahead.
I am acutely aware of the significant challenges the impacts of Storm Éowyn have caused for business owners over recent weeks. Since 24 January, I have been closely monitoring the situation with Storm Éowyn and its impacts on the business community through regular updates from the national emergency co-ordination group and updates from local enterprise offices in the counties with the most significant and prolonged impacts. Following the immediate damage caused by the storm, many businesses have been impacted by outages of power, water and communications networks.
With regard the issue of potential schemes to support businesses with losses arising from Storm Éowyn, in the first instance I encourage businesses to seek recourse through their insurance providers to cover losses they have incurred. I have been engaging directly with the insurance federation and my clear understanding is most losses incurred by businesses, such as property damage, loss of earnings and spoilage of stock, fall within standard insurance cover and the damage caused by the storm is a standard insured peril for insurance policies. I welcome that Insurance Ireland has said that house insurance premiums, for example, are not generally impacted by one event such as this storm, but rather on a range of many different rating factors and insured perils.
The Department of Enterprise, Trade and Employment has in the past operated targeted emergency humanitarian flood relief schemes in response to specific flooding incidents. These schemes are specifically targeted at providing a contribution to small businesses of up to 20 employees as well as community, voluntary and sporting bodies which have experienced damage as a result of flooding and to help them get back up and running. A condition of eligibility for these schemes is that the businesses must not have been able to secure flood insurance through no fault of their own.
The programme for Government includes a commitment to an extreme weather event assistance scheme, which we are working on establishing.
The Minister might clarify if he got agreement from the insurance companies that the amount they pay will not be impacted. Businesses have two concerns about insurance. The first relates to the excess. If the excess is a couple of thousand euro and their loss is less than that, obviously they will not be able to claim. They are also afraid that their premiums will go up, meaning that over a three- or five-year period, they end up paying back more than they got in the first instance.
The Minister said he has been in contact with the water, electricity and communications companies. There are still hundreds of businesses and homes in Mayo and other counties that do not have proper communications. There have been no proper responses from Eir, Vodafone and the other communications companies. Will the Minister clarify the extent of the conversations he has had with them and when those people will be reconnected because it is really impacting their businesses?
I thank the Deputy for her response. The Minister for Agriculture, Food and Marine has announced a scheme for investment in the horticulture sector, which has been very significantly impacted.
I was very quick to contact the insurance federation to get assurances that businesses affected would be covered regarding their standard practice. While I cannot go into the detail of individual policies regarding excess because they are very different, I can assure people that, in the general course of action and insurance peril, it is part standard insurance cover.
Regarding communications, I have been on to the Minister, Deputy O'Donovan. We are very concerned about getting businesses and first responders which suffered outages at that time back up and running. We have a lot of work to do in that regard. This week Uisce Éireann will get 100 generators to future-proof for such events. The country needs to learn how we respond in future to a very significant event like this. We need to accept there were gaps in the response. Following the investment that went into rural areas through many schemes, there was an exceptional response and communities really rose to the challenge.
I want to get clarity on this. Will a scheme be put in place for businesses? I welcome what the Minister has said about horticulture. As he knows, the land in Mayo and the west in general does not lend itself to that. Will we have a scheme similar to the one we had for Storm Babet? It is important that is done sooner rather than later because people and businesses want certainty. There are many people who are self-employed, including farmers and fishermen. Last week, I spoke to either the Minister or the Taoiseach about an instance relating to oyster farming. About €160,000 has been lost and they do not have insurance. They will not be able to operate again unless they are compensated for that. We need clarity on it. I understand what is stated in the programme for Government but the vagueness around it is causing concern for businesses. Businesses cannot sustain the losses they have incurred following this storm.
In line with the commitment in the programme for Government, we are establishing a scheme. Specifically for this event, we need to be clear that the first recourse for businesses is through their insurance to cover them for damage, loss of earnings and spoilage of stock. That is the critical way in which they seek recourse. It is very different from flood damage where businesses could not get insurance. That is a very different scenario. We are establishing a scheme. I also point out that, regarding the statutory deadlines businesses face through the CRO and the Revenue Commissioners, we have worked to ensure there is significant leeway for businesses if they fail to meet their regulatory requirements at this time.
For the key impacted areas, as I have said, the Department of agriculture has stepped up with a scheme for horticulture. We will be assisting on a lot of agricultural damage that happened. For businesses, we need to work to establish a statutory scheme in future, on which work is under way. At this time, the first recourse for businesses is through their insurance companies. If there are any specific cases, the local enterprise offices, LEOs, are very happy to work with businesses and support them in any way we can.
Employment Rights
2. Deputy Richard Boyd Barrett asked the Minister for Enterprise, Trade and Employment if he will intervene to protect employment rights and jobs in an institution (details supplied), which provides courses for TU Dublin and refuses to engage with the WRC; and if he will make a statement on the matter. [7039/25]
Last week in the Dáil I raised the plight of teachers in the British and Irish Modern Music Institute, which provides degree courses for TUD in commercial modern music. At that point, 53 of them had been threatened with redundancy and were told they would have to reapply for their own jobs and would be facing big cuts in their pay and conditions. Their union and their strike action have now established some sort of deal which will be balloted on. However, it raises serious questions about how workers in higher education could be treated in this way.
I thank the Deputy for raising this important matter. As he will be aware, Ireland has a comprehensive body of employment, equality and industrial relations legislation. Ireland’s system of industrial relations is essentially voluntary in nature. It has been the consistent policy of successive governments to support the industrial relations institutional framework. Indeed, the programme for Government commits to supporting the central role of the Workplace Relations Commission and the Labour Court in industrial relations and employment rights.
I would always encourage parties to make every effort to reach a resolution by agreement between themselves and with the help of the industrial relations machinery of the State if necessary.
I note from media reports yesterday that there have been constructive discussions between the parties and that there may be a resolution in sight, which is welcomed by all.
All employers are responsible for ensuring their employees receive all the protections afforded them under employment legislation. The Protection of Employment Act 1977 protects and supports workers in redundancy situations. The legislation imposes certain legal obligations on employers proposing collective redundancies, including the requirement for a 30-day consultation period with employees and their representatives. Employers must notify me, as Minister of State, and the Minister for enterprise, tourism and employment, of the proposals at least 30 days before the first dismissal takes effect. Employers may not issue notices of redundancy during this period.
On 14 February 2025, the Department received a collective redundancy notification in accordance with the legislation from the company named by the Deputy. Employees have the right to refer complaints to the WRC on a wide range of employment law breaches for adjudication and redress, including the right to refer a complaint should an employer fail to consult, and that was done in this case.
That is very interesting. I was not aware the Minister of State was notified. Due to the three days of strike action and the representations of IFUT, the workers' union, it looks as if BIMM has made concessions which it is hoped are satisfactory to the workers. The context here is that 53 workers were told they were going to be made redundant but not because their jobs were gone. They were going to have to reapply for their own jobs but on lesser pay and conditions, with the creation of a new freelance grade to replace jobs which had a more formal arrangement. I am glad to say the workers have won but they should not have had to go out on strike for three days. It looks as if all compulsory redundancies are off the table now, there will be a system of career progression and some pay increases for workers. This was achieved through their own efforts. Under no circumstances should workers anywhere, but particularly where they are employed under the auspices of TUD, be made redundant and then asked to reapply for their own jobs.
As I said in my earlier contribution, Ireland has a robust suite of employment rights legislation to protect and support workers in redundancy situations. In the first instance, responsibility for the resolution of industrial disputes between employers and workers rests with the employer and the workers and their representatives. The programme for Government supports the critical role of the WRC and the Labour Court, if it gets to that situation, in the context of industrial relations and employment rights.
As the Deputy said earlier, we all welcome the fact the employees in the company have suspended their industrial action, which is very important. Their constructive discussions have led to a possible resolution and follow-up balloting by members. The Department will continue to ensure workers' rights are strengthened, that we have robust legislation in place and that we continue to support workers.
Let us be clear, their strike action, the actions of their union and the fact the matter was raised in this House all put pressure on BIMM to come to the table. It had previously refused to go to the WRC. There is a serious issue here, especially as the workers were working under the auspices of TUD. Essentially, TUD had outsourced this degree to a private company. That contract will be up for renewal in a couple of years. I would ask the Department to talk to colleagues in other Departments, particularly the Department of higher education, and say that it should be a condition of tenders that those tendering would guarantee decent pay and conditions and not allow outsourcing to create yellow-pack grades of pay and conditions for people working in higher education. Otherwise, we will get a race to the bottom and a repeat of this kind of thing. Proactive action by the Government to prevent this happening in the future would be very useful.
I am not familiar with the detail of this specific case, but Ireland's system of industrial relations is essentially voluntary in nature. It has been a consistent policy of consecutive governments to support the development of the institutional framework within the WRC and the Labour Court. In this instance, we did receive advance notice of collective redundancies from the company which complied with the Protection of Employment Act in terms of supporting certain legal obligations. The consultation process has raised serious concerns, however, relating to what was being offered to the employees, who have the right to complain and to seek representation, which is what happened in this case. The machinery of the State is the WRC and Labour Court for any resolution.
3. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment if he has been made aware of potential job losses in the software sector; if he has asked the IDA to intervene; and if he will make a statement on the matter. [6594/25]
We now know that 142 staff are to be laid off by the Irish branch of the global HR and payroll processing company, Workday. When was the Department notified of these job losses? What contact has the Department had with the company and the workers? What is being done for those workers? Has IDA Ireland been involved and how can these workers be helped to find alternative employment and supported? This morning I want to send solidarity from this House to those workers and their families.
While the technology sector, which includes software, has undergone a period of sustained growth for the past 20 years, recently it has seen some significant contraction. Where IDA Ireland's multinational clients in this sector have announced global job reductions, the reductions have typically been less than 10% of their total global workforce. Furthermore, in most cases, the job reductions implemented in Ireland have been lower in percentage terms than the globally announced figure. Typically in an economy with such low levels of unemployment, employment opportunities will arise, especially for the talented people employed by the software sector.
Nevertheless, where such job losses are announced for Ireland, our first and primary concern is for staff members and their families impacted by such decisions. The supports we can provide in conjunction with our enterprise development agencies and other Departments is at the forefront of our response. Moreover, the Protection of Employment Act makes it mandatory for employers proposing a collective redundancy to engage in an information and consultation process with employees' representatives for at least 30 days and to notify me, as Minister for enterprise, tourism and employment, of the proposed collective redundancy. Such an employer is prohibited from issuing any notice of redundancy during the information and consultation process with employees' representatives, and the employer cannot make employees redundant until at least 30 days after the Minister has been notified of the proposed collective redundancy. In any such redundancy scenario, the enterprise development agencies under my Department assist, where possible, those impacted to find alternative employment. This includes sharing the skills portfolios of impacted employees with companies that may be hiring, such as multinationals in IDA Ireland's client portfolio. Equally, working with IDA Ireland, our objective is to help to sustain and create further employment in the technology and software sector overall.
In relation to the software sector it is important to note that the commitment of technology companies to Ireland remains exceptionally strong. Last year Ireland secured investments from leading companies in the sector including Microsoft, IBM and Intercom.
On the Deputy's specific question, the Department was notified this week but I do not have the exact date in front of me.
Last month we learned that Meta is to cut 5% of its staff globally and last year Intel and TikTok notified staff of impending job losses. As the Minister rightly said, there is a significant contraction and it is very important we have a plan in place as this is likely to happen again in the future. Last night we talked with the Minister of State, Deputy Smyth, about AI and the implications for the Irish economy. While there are many positive applications of AI and it will continue to be a growth area, significant layoffs can also result from AI. I want to see an action plan in that context. I also want to see, as we discussed last night, the building up of expertise within Government. We need to be looking at the existing skill sets and what is necessary for Government to be able to tap into these. I would also like to see, after such job losses, a measuring of how long it takes individual workers to find alternative work so that we can stay ahead of the game.
While we have seen a recalibration in the tech sector post Covid, it is still very strong.
We have a very rich vein of talent. We have and are host to eight of the ten global leading tech companies in this State at this time. We provide so much talent and skills, with 8% ICT graduates in our economy. That is double the EU average. We are double per capita in STEM graduates, which provides a huge rich vein. We have, as part of our digitalisation strategy, a very clear policy regarding the tech sector, which was established in February 2022. We have the White Paper on enterprise, which sets out our plans and goals to achieve 90% digital intensity in basic SMEs by 2030, which are a very important cog in the wheel as well. Obviously we have our AI strategy, which we have updated as recently as last November, working very closely with the AI advisory group, chaired by Dr. Patricia Scanlon. We are also working to implement the AI Act, designating our competent authorities and getting our regulatory sandbox up and running. There is a huge amount of opportunity in this space and Ireland has the foundation to grasp that opportunity and we will not be found wanting for the resources to do so.
I thank the Minister and I agree with a lot of what he said. Within these strategies, it is always in the implementation and how quickly the implementation can be done. There are opportunities there for self-employment as well. When people find themselves in a situation where they lose their jobs, we should be coming in there to support them. What I am finding in some areas is that when the brightest and best young people are coming up with ideas, whether it be the development of apps or whatever, and I spoke to a person last Saturday in Mayo about this, they are falling between the agencies, for example, Údarás na Gaeltachta, the LEOs and Enterprise Ireland. Perhaps the Minister would look at that area in order that none of these projects are falling between the stools because the people they are presenting to may not fully realise the potential of the things they are coming forward with. We need to nurture this talent, but we also need the start-ups and to ensure these businesses can scale up and stay in this country.
We have a huge demand for workers in those categories. That can be seen from how much the landscape has changed across our capital city and other regions throughout the country. That is why the IDA has specifically called out digitalisation and AI as one of the key growth drivers for its new five-year strategy, hoping to bring in €7 billion of research and development investment, growth of 15,000 jobs per annum, of which 54% will be in regional Ireland, aimed at getting 550 investments right into our regions. That is going to be critical to continuing the agility of our economy.
There is huge demand. As can be seen from our critical skills permits, we are trying to bring in workers through legal pathways to feed a growing and strong industry. While there was recalibration in certain companies, the growth is very significant, as can be seen from the announcements in AI. Some incredible companies that are part of that landscape are setting up their headquarters in Ireland, which we welcome. We have the most prized resource of any country - our people and skills - and we are ready to absorb that opportunity.
Regional Development
4. Deputy Michael Collins asked the Minister for Enterprise, Trade and Employment if he will provide details of the employment opportunities created by his Department since 2024 in Cork South-West, specifically in the areas of Beara, Mizen Head, Sheep’s Head, Bandon, Dunmanway, Skibbereen, Drimoleague, Clonakilty, and Kinsale; and if he will make a statement on the matter. [7073/25]
Will the Minister of State provide detailed information on the employment opportunities created by the Department of Enterprise, Trade and Employment since 2024 in Cork South-West, specifically in areas such as the Beara Peninsula, Mizen Head Peninsula, Sheep's Head Peninsula and areas from Inishannon to Bantry? It is important that we create and are seen to be creating good jobs there for the people of that constituency.
I thank Deputy Collins for his question. There are now 26,026 people employed in Enterprise Ireland-supported companies in County Cork, a net increase of 846 jobs during 2024. There was also positive job creation recorded across the three LEOs based in County Cork, with 3,076 jobs supported by 618 LEO clients. This represents a net gain in 2024 of 119 jobs. The FDI performance in the south west, which comprises counties Cork and Kerry, has been consistent over the past five years, with employment among IDA clients increasing by 17%. There are 235 IDA client companies in this region, employing more than 51,000 people in the area. In Cork, there are 219 IDA companies, employing 49,898 people. Recent announcements in Cork indicate that Ireland’s value proposition remains strong. For example in February, Infineon announced the creation of 50 jobs and last November saw Qualcomm announcing a $126 million investment, creating more than 150 jobs.
The south west has a significant ecosystem of established companies across technology, life sciences, international financial services and engineering and industrial technologies. It has also won significant investment across all of these sectors over a sustained period, which has contributed significantly to employment growth and positive economic impacts on other sectors of the economy. I continue to emphasise the importance of regional development in the role of my Department’s agencies in driving economic growth in Cork. I highlight the efforts of Enterprise Ireland, the IDA and the LEOs to provide businesses with the resources and support they need to thrive, particularly in areas outside the capital.
I thank the Minister of State. I failed to welcome her to her new role when I spoke earlier. I wish her the very best of luck going forward.
I was very specific in my question. I have raised the same question with the Minister of State's predecessor in the Dáil before, and I received a lot of answers but they were not specific to these places. I am very concerned, especially living on a peninsula myself, about the peninsulas and where the Department of Enterprise, Trade and Employment is focusing on in areas such as the Beara Peninsula, Mizen Head and Sheep's Head. How is the Department creating jobs and what kind of jobs is it creating? These areas have had a downturn in agriculture because farming is going through a struggle at present. Fishing has been decimated in those peninsulas. I see a wave of cars leaving west Cork every morning going to Cork city. There is nothing wrong with jobs in Cork city and I wish the very best of luck to everyone, but as the Minister of State said, 50 jobs were created in one area recently and there are another 115 following an investment of $126 million. What part of Cork were those jobs specifically assigned to?
I take the Deputy's point. Balanced regional development is a key priority for the Government and all TDs who are from more rural parts of the country. I will raise the Deputy's specific questions with the Department following this. The number of jobs in Enterprise Ireland-supported companies in County Cork has increased by 846 since 2023, with 26,026 now employed in the county by those companies. The regional impact of Enterprise Ireland's efforts is evident in the distribution of job growth across all nine regions, recording a positively increased number of employment figures.
I take the Deputy's point today, however. There are very specific areas within the county the Deputy is concerned about. We will see if we can get further information on that. As I said, positive creation was recorded across the LEOs in Cork, with 3,076 jobs created and supported by the 618 LEO clients in the county. These companies recorded a net gain of 119 jobs. The IDA clients are now employing 165,484 regionally, or 55% of the client base employment. There are 219 IDA companies in Cork, employing almost 50,000. I will come back to the Deputy more specifically on the areas he inquired about.
I would appreciate it if the Minister of State could come back on that. Obviously employment is good no matter where it is. I know there are massive employers in Cork city such as Apple, the pharmaceutical companies and others. They are second to none and are to be always welcomed and secured. Many people are spending two hours in a car going up to Cork every morning to work and coming back to west Cork because there are no major employment opportunities in those areas. I picked Beara, Sheep's Head and Mizen Head, but I also have concerns about Drimoleague, Skibbereen, Clonakilty, Bantry and Bandon. I would appreciate it if the Minister of State's reply were more specific as to where the jobs are being created because it looks as if the Department is very much concentrating on the city, which is hugely important, but has forgotten there is an area two hours west of Cork city where people would like job opportunities. There could be if there were just a little bit of vision and a common-sense approach.
I thank the Deputy. I will take a note of the specific areas he asked about.
We all want to create the balanced regional development the Deputy has spoken about. The introduction of AI may allow companies to do that and allow people to work in more rural parts. We will focus on that with Enterprise Ireland, the IDA and the LEOs to see how we can support them in achieving that.
Regional Airports
5. Deputy Rose Conway-Walsh asked the Minister for Enterprise, Trade and Employment for an update on the programme for Government commitment to develop strategic development zones; and how this will relate to additional supports for the strategic development zone at Knock Airport. [6595/25]
I welcome the commitment in the programme for Government to develop strategic development zones, SDZs. What will this look like for Ireland West Airport Knock? What timescales will be on that? There is huge untapped potential in our region, which has 95,000 sq. m of commercial enterprise space that can be used for economic development. I welcome the appointment of a manager specifically for this, but we need to know what it will look like. Will the Minister drive it and make it a priority?
I thank Deputy Conway-Walsh for raising this important matter. I look forward to working with her in delivering the SDZ at Ireland West Airport Knock. Balanced regional development is a key focus of this Government. My Department contributes to this objective through the work of its enterprise development agencies, Enterprise Ireland and the IDA as well as through the network of 31 LEOs which have a presence in every county. It is the responsibility of the nine regional enterprise plans which focus on initiatives to deliver growth in each of the nine regions of Ireland. The programme for Government commits to considering the development of economic SDZs for the regions. An SDZ, as it has been until now, is a planning designation and is typically followed by the development of a planning scheme for the SDZ by the relevant local authority. The Department has engaged with the SDZ at Ireland West Airport Knock, including through the provision of more than €200,000 per year over a two-year period to Mayo County Council for the development of a roadmap for the development of the SDZ. A project manager for this work, who was appointed in August of last year, is developing a roadmap setting out the process for the development of the SDZ, for example by identifying the infrastructure required to advance the site, identifying the challenges facing the development, facilitating access of funding to deliver on specific project elements, and supporting the communication of the vision of the SDZ at a local level and to other interested parties. The work of the project manager is overseen by a steering committee chaired by Mayo County Council and includes representatives from key stakeholders including the IDA, Enterprise Ireland, the Western Development Commission, the Northern and Western Regional Assembly, Atlantic Technological University, Ireland West Airport Knock and the Department. The most recent meeting of the steering committee took place in December, with the next meeting expected in March. Officials from the Department have also liaised with relevant Departments and State bodies on issues of relevance to the SDZ.
Comhghairdeas to the Minister of State on his new role. We share an interest in Knock Airport and its development. We have talked about it for decades since Monsignor Horan was brave enough, against all the odds, to build the airport. It is obvious that it has not fulfilled its potential. In 2022, the EU downgraded the north and west as a lagging region with a GDP of only 71% of the EU average. Last year, the Northern and Western Regional Assembly published research showing that since 2016, the north and west region has received just 5.7% of investment in infrastructure projects worth more than €20 million. The facts speak for themselves. We have a unique opportunity but it is not going to happen unless we all work together. That is why I want to see this roadmap. I want to see that it will be measured along the way to ascertain exactly who is responsible for moving it along and how and when that will be done.
I think we are all in agreement that this is a critical piece of enterprise-enabling infrastructure for the west and north west. We have support from the Minister, Deputy Burke, and the Minister of State, Deputy Smyth, who also have regional responsibilities. The development requires focus and commitment. I welcome the appointment of Dominick Healy in August last year. He is a very competent project manager. The roadmap will build on the consensus of the steering committee stakeholders which comprise a number of State agencies and key local authorities. The completion timeline of two years has been set by the SDZ development roadmap. We have a timeline of August 2026, two years after the appointment of the project manager. We want to see, following that, a number of initiatives to ensure that there is investment in that strategic land bank to ensure it has critical services and utilities and that we have a plan to attract investment.
It is important that people's expectations are not raised. Before elections, there are nonsensical announcements and all that. It is a ten-year period before this will be done with utilities and all of that which needs to be done to develop this zone. Things can be done in the meantime but people's expectations need to be managed. There is a critical opportunity here. In 2021, Sinn Féin wrote to the European Commission seeking a total exemption from state aid rules for regional airports such as Ireland West Airport Knock due to the challenges of Brexit and Covid-19. Will the Minister of State consider pursuing this objective to enable Ireland West Airport SDZ to reach its full potential? There is no western rail corridor and the all-island strategic rail review was grim reading for the north west. These issues are interconnected but they present a unique opportunity that we cannot wait to have implemented.
This Government has been steadfast in its support for Ireland West Airport Knock through the regional airports programme. More than €20 million has been invested in key infrastructure, safety and security projects at the airport. There were record passenger numbers again. The trajectory for that airport is important. Work is being done with the board of Ireland West Airport Knock to attract investment. Aircraft maintenance companies have set up there already. This work is important. The former Taoiseach, Leo Varadkar, and the former Minister, Simon Coveney, moved this on to ensure there was a feasibility study. The Minister of State at the time, Deputy Calleary, was also supportive in the Department. We need to work collectively to ensure it reaches its full potential. The SDZ has the potential to open up the Atlantic economic corridor. As the Deputy said, key infrastructure projects like the western rail corridor are critical to its viability.
Bord na Móna
72. Deputy Pa Daly asked the Minister for the Environment, Climate and Communications 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]
73. Deputy Ciarán Ahern asked the Minister for the Environment, Climate and Communications 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]
75. Deputy Jennifer Whitmore asked the Minister for the Environment, Climate and Communications to clarify his plans to sell Bord na Móna Recycling; and if he will make a statement on the matter. [7031/25]
Questions Nos. 72 and 73 are grouped, but I thought there used to be a protection on priority questions.
If they are grouped because we are raising the same issue, what are the timings for it? How does it-----
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.
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.
It has happened a couple of times in the past while but did not previously.
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?
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.
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?
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?
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.
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.
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.
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.
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.
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.
Energy Policy
74. Deputy Pa Daly asked the Minister for the Environment, Climate and Communications the funding model for supporting the roll-out of renewable energy and for supporting the grid; if he has plans to reform current models; and if he will make a statement on the matter. [6768/25]
I want to ask the Minister about the funding model for supporting the roll-out of renewable energy, the public service obligation, PSO, levy and the carbon tax, and whether the Minister has any plan to reform current models. Will he make a statement on this? We have great renewable potential. A group of parliamentarians from Germany were here last year and all they wanted to talk about was our renewables potential. What funding models are there?
I thank Deputy Daly. Specifically with regard to the roll-out of renewable energy onto the grid, it is an absolute priority for the Government. We have very exacting targets. We also have a climate action plan. We are making progress on renewables. We have further renewable resources we can tap into. We have offshore renewables but I believe we have more capacity for onshore renewables. We have been successful, particularly with regard to onshore renewables.
The PSO levy charged to all electricity final customers in Ireland is a vital policy support for the development of the renewable energy sector in Ireland. It will help to enable us to reach our national and EU energy and climate targets. The PSO funds a number of Government schemes for renewable energy generation. Just over 4,000 MW of the approximately 7,000 MW of renewable generation in Ireland is supported by the PSO, which is significant. The annual renewable electricity support scheme, RESS, auction programme, which guarantees funding through the PSO, is a critical enabler of the investment needed to underpin the renewables-led energy system. Any consideration of future funding models will need to deliver reductions in electricity bills for households and businesses and ensure there continues to be a stable and sustainable investment framework so Ireland reaps the long-term benefits of its indigenous renewable resources.
Regarding the funding of the electricity grid, the Commission for Regulation of Utilities, CRU, is responsible for the regulation of ESB Networks and EirGrid, the electricity system operators. Expenditure by EirGrid and ESB Networks is agreed with CRU in five-year cycles. As Deputy Daly knows, these are referred to as the price reviews. Work has commenced on the latest price review 6, which will see CRU sanction investment in the grid between 2026 and 2030. It has seen ESB Networks request a baseline investment of €10.1 billion, with the potential to grow to €13.4 billion.
I appreciate what the Minister has said. It is obvious that the PSO is a vital policy support, as the Minister has said. We have great potential to transform our energy system from import dependence to becoming a global leader in renewables. Significant investment will be required. At present, there is an inequity at the heart of climate change where the causes and effects are not equally shared. Recent Governments have preferred an inequitable model, where there is a disproportionate burden on ordinary households and the wealthiest get off practically scot-free.
The indiscriminate carbon taxes place a disproportionate burden on those for whom alternatives are unaffordable or unattainable and they fail to deter the greatest emissions. However, the current Government, including the junior Minister, Deputy Michael Healy-Rae, and Government-supporting Deputy Danny Healy-Rae, have agreed to continue to support these increases over the next five years.
The public service obligation, PSO, is another regressive financing lever which hits the lowest income hardest. According to the Economic and Social Research Institute, ESRI, the cost of this levy is 12 times larger. In the programme for Government, the Government said it will explore other funding models that will reduce electricity bills for households and businesses. Will the Minister commit to some other funding models that will do that?
All of us understand and accept that we have vast future potential to harness additional renewables that will deliver price savings and stability in our energy market, which we need unquestionably, and help us to reach the exacting targets we have set with regard to climate. We saw very recently in some areas of the country how fragile our grid is to withstand very severe weather events. That is something we take very seriously as well. As the Deputy rightly said, we have committed in the programme for Government to intensify the transition to lower-cost renewables and electricity generation and continue the transition away from expensive and volatile imported fossil fuels. We will look at other potential funding models as well. We committed to doing that too. However, I have stated how central the PSO levy is to energy generation, particularly around investment in renewables. It is critically important and I would see that remaining a very critical part into the future.
The question is about what other funding models the Minister has in mind. There is a broader issue of the increased investment in public ownership as a means of funding and accelerating the transition. Recent governments have created an energy system where profit maximisation seems to be the most important part of it. With the privatisation of our energy generation, the market share transfer from public to private sector means that profits have flown into corporate dividends. Is the Minister happy with that model, which has resulted in increased bills for ordinary people? The transition presents an opportunity now for us to reform our energy system for the betterment of all, but it seems that opportunity is being squandered. As the Minister mentioned, the vast majority of renewable energy under the renewable energy support scheme, RESS, is privately owned or publicly owned by other states. It is crazy to think that Norway's state-owned Statkraft and EDF France own more of our offshore resources than we do. Even more of our renewable resources are owned by private corporations. We feel that there should be increased public ownership. What measures is the Government taking to increase public ownership, if any? Furthermore, what will it do to reduce our energy prices, which are some of the highest in Europe?
Fundamentally, as the Deputy will know, the grid itself is owned by the State. We operate an all-island electricity market. The State owns the grid itself both North and South. The further expansion of that to harness offshore renewables in particular, as the Deputy knows, are the RESS auctions. We have five applications in planning right now. They are a very important part of actually expanding our renewables. There are other funding methods available. The Deputy will be aware of the corporate power purchasing agreements, CPPAs. They are critical enablers of the investment needed to underpin the renewables. The big focus over the coming years, now and this year and beyond, is actually strengthening the grid onshore and expanding it offshore. That has to be done. EirGrid will have a very significant plan for future investment and has been undertaking that. However, price review, PR, 6 is going to be critically important with between €10 billion and €13 billion of investment between 2026 and 2030. That is up from approximately €5 billion in the previous five years. That is critical to ensuring that we move towards a stable energy environment and can actually expand our electricity output to allow us to grow further.
Question No. 75 taken with Question No. 72.
Energy Infrastructure
76. Deputy Paul Murphy asked the Minister for the Environment, Climate and Communications if he is aware that the emissions impact of imported liquefied natural gas, LNG, is worse than that of coal; and if he envisages the building of either a State-led or commercial LNG terminal in that context. [7030/25]
Is the Minister aware that the emissions impact of imported LNG is worse than even coal? It is the dirtiest fossil fuel. Despite that, the Taoiseach has said that we will "have to have an LNG facility of some kind." Will the Minister be going along with the Taoiseach? Will that be a so-called State-led project, as the previous Government was in favour of, or a commercial LNG? Can the Minister update us on the progress of the memo his Department is meant to be bringing forward?
As outlined in the programme for Government, the Government is committed to taking decisive action to radically reduce our reliance on fossil fuels and achieve a 51% reduction in emissions from 2018 to 2030, and to achieving net-zero emissions no later than 2050. In the programme for Government, we also set out commitments to achieving 80% of Ireland’s electricity generation from renewable sources by 2030 and to take all necessary action to ensure and protect Ireland’s energy security. It is through delivering on this commitment that we will deliver a secure and sustainable energy future. The commitment to a secure an energy future builds upon the Energy Security in Ireland to 2030 report that was approved by the previous Government and published in November 2023. Specifically with regard to natural gas, this report concluded that Ireland does not have adequate resilience in case of a major disruption to our subsea gas imports pipelines and does not currently meet minimum EU standards in this area. I agree with its analysis on that. We are in quite a precarious situation in that regard.
It is in this context only that a State-led strategic gas emergency reserve in the form of a floating storage and regasification unit was recommended in the report in the context of ensuring energy stability and security. A State-led strategic gas emergency reserve, operating on a non-commercial basis for use only in the event of an emergency, would provide resilience to the gas system and mitigate the major consequences for our society and our economy that would arise from significant gas disruption in Ireland. In parallel my Department is developing the appropriate policy and legislative measures to ensure that a strategic reserve provides the resilience to our system that we need.
I note the Minister simply ignored the actual question. That is obviously a prepared answer; he has a prepared question. I could go again. Is the Minister aware that the emissions impact of imported LNG is worse than that of coal? This is research from last October by an environmental scientist called Robert Howarth. I will give the Minister some of the lowlights. The paper states that "LNG is 33% worse in terms of planet-heating emissions over a 20-year period compared with coal." It goes on to state that "Drilling, moving, cooling and shipping gas from one country to another uses so much energy that the actual final burning of gas in people’s homes and businesses only accounts for about a third of the total emissions from this process." The large resulting emissions mean there is "no need for LNG as an interim energy source". The paper adds that “ending the use of LNG should be a global priority” and yet the Government is going in the opposite direction. The Government is paying lip service to targets that the previous Government was not going to meet, and that this Government is going to miss by an even greater margin, unfortunately, than it was on track to miss them by. It seems that this is driven by the Healy-Raes on one hand and Donald Trump on the other.
Right, I do not know where to start with that. There is a reality. The Deputy has dismissed the report that was done and the research that was carried out with regard to energy security full stop. What would this country do if there was an unforeseen event that disrupted our gas supplies while we are transitioning away from fossil fuels? We have done that very successfully. I commend the previous Minister on the work he did in that area. I know the Deputy was consistently critical of the work he and his Department carried out. However, the reality is that if there is a disruption to our gas supply, Ireland does not have a strategic reserve. What would that mean for society? What would that mean for our hospitals, businesses and homes? It is in that instance, looking at the risks that are there, that we absolutely unquestionably need to move towards a strategic gas reserve.
With regard specifically to the Deputy's contention that emissions of imported LNG are worse relative to that of coal, that depends on a number of factors, such as the timeframe in question, the supply chains associated with both coal and LNG and the methods of transporting both fossil fuels.
It is not my contention, Minister.
I do not claim to be a climate scientist. It is the contention of those who have researched the matter. Perhaps the Minister is going to ignore the science on it. The answer in terms of energy security and resilience is, first, to stop expanding data centres. They are putting our energy usage on an accelerating upward track - they are going to be at 30% by 2030 - and the Minister is basically telling them to "burn, baby, burn", let it rip and go up even higher. First, we need to reduce energy usage where necessary rather than expanding it. Second are batteries and third is interconnection.
I will ask the question explicitly. Was there a secret deal with the Healy-Raes to give a wink and a nod to the Fortress Energy commercial LNG terminal in Tarbert, County Kerry? That is what the Business Post is reporting, saying that the line the Minister cited in the programme for Government was included, in reality, to get Healy-Rae support. Is it about appeasing Donald Trump? The Taoiseach said that Europe will have to buy more liquified natural gas from the US to appease tariff threats from Trump. Those are his words, not mine. Are we going to trade away our climate, our children's future and our energy prices to placate Trump's bully-boy tactics in order that the US fossil fuel giants can drill, baby, drill?
There is no secret deal done at all. I have mentioned and the Deputy has ignored completely the issue of what Ireland would do right now, next week, the week after or next year if there was a disruption to our gas supply. Gas is in our system right now and we are reducing our reliance on it. What would we do? Would we just have no strategic reserve of gas? Would we not run our hospitals for a period of time?
Hospitals, Minister?
It is a very serious proposition. If we have no energy and a major disruption to our gas supply, we need to have a reserve in place. This did not come about by any kind of deal that the Deputy suggests. It is about ensuring we have the adequate supports in place should there be a disruption to our gas supply while we are expanding renewables and increasing our interconnection, as the Deputy knows we are doing also. It is about the security and stability of our energy system for our people - nothing more, nothing less.