Minister turfs out idea of peat plant's revival

He is "not for budging" on his opposition to the revival of a peat briquette plant in north Mayo, the Minister of State for Arts, Heritage, Gaeltacht and the Islands, Mr Eamon O Cuiv, has said.

A local community action group has expressed its determination to seek a new investor for the controversial project, which has already attracted some £30 million in investment over several decades without ever trading on the marketplace.

"I am sticking my neck out on this one and saying no," the Minister of State told The Irish Times emphatically last week. He was responding to resolutions passed at a public meeting hosted by the Erris Action Committee, which supported the purchase of the assets of the plant by Udaras na Gaeltachta with a view to attracting new investment.

"Four previous attempts by reputable backers have all failed, and it is time for a new agenda - and a sustainable alternative for the people of Geesala," Mr O Cuiv said. If Udaras na Gaeltachta is to buy back the plant, in which some £3 million of State funds have been injected, it should be for another venture - such as an enterprise centre, he said.

Surrounded by bogland in the unemployment blackspot of north Mayo, the factory, built and equipped to produce low-smoke/high-heat peat fuel at Muingmore, is a testament to much enthusiasm and more frustration on the part of those involved. The owner, Cavan businessman Mr Gerard Clarke, acquired it last year when the most recent investor, Norwegian multinational Norsk Hydro, withdrew with the loss of over 40 jobs.

Mr Clarke has been seeking £2.5 million for the plant, and Udaras na Gaeltachta is one of the potential buyers. However, the Gaeltacht authority - which has been criticised for not buying the factory when the Norwegians withdrew - requires the permission of the Minister of State to buy any assets over £100,000, and in this case the Minister is not willing to give his blessing.

Mr Clarke told The Irish Times last week he would have to sell it off on a piece-by-piece basis if no deal was complete by this week, as he had already delayed to give the local community time to come up with a buyer.

The Gaeltacht authority has expressed serious doubts about the project's viability, and echoes the Minister of State's view that the site might be better served as the location for an enterprise centre in an area of high unemployment - estimated at 55 per cent in Erris. It obtained repayment of grants worth up to £1.8 million from Norsk Hydro, after the Norwegian oil, gas, fertiliser and aluminium giant decided to suspend work over a year ago.

Two members of the Udaras, Mr Tim Quinn and Mr Ian McAndrew, have sought a special meeting of the authority to discuss the issue. The Erris Action Committee, chaired by Mr Seamus Cafferkey of Belmullet, believes the project still has potential and could employ up to 200 people. It could also provide an outlet for Bord na Mona peat when the ESB peat station at Bellacorick closes in 2004.

"Udaras has not given the same commitment to the Erris Gaeltacht as it has to the Connemara Gaeltacht and it would only require an additional £3 million to £4 million to get this off the ground," said Mr Cafferkey. Supporting the action group's stance is the man who dreamed up the whole venture, former Fine Gael TD and senator Mr Myles Staunton of Westport. The action group has proposed he be given two years to attract investment and get the plant up and running, and if there is any delay after that the assets should revert to Udaras na Gaeltachta.

Mr Staunton has already drawn up a business plan which identifies the market in Ireland and Europe for four domestic fuel products suitable for smoke-controlled areas - Dubrite, comprising 40 per cent peat, 25 per cent petroleum coke, 25 per cent anthracite and a binder; Powerbrite, comprising 75 per cent peat and 25 per cent coke; Black Beauty, comprising 15 per cent peat, 41 per cent anthracite, 37 per cent coke and 7 per cent bitumen binder; and Celtic Tiger, similar to Dubrite but specially packaged for niche markets.

However, the Minister of State says the location puts the project at an immediate competitive disadvantage; and he also believes it is foolhardy to pursue a fossil fuel project against a background of pressure to reduce carbon dioxide emissions. While he acknowledges the area is crying out for employment opportunities, he believes the biggest challenge is to provide opportunities for young people with third-level qualifications.

"A series of reputable backers have tried this project and failed, including Norsk Hydro, working with McDonaghs of Galway, and the North Connacht Farmers' Co-op before that," he says. "That carries its own message."