Mr Jim Higgins, Fine Gael spokesman on Public Enterprise, has called on the Government to meet Eircom immediately over its decision to pull out of a €37 million communications plan for the Border, Midlands and Western (BMW) region.
Mr Higgins, TD for Mayo, said the company's withdrawal undermines the Objective One status of the BMW region, and he intends to raise the issue in the Dail this week. "There is little point in the Tanaiste, Ms Harney, promising jobs in the regions without this vital part of the infrastructural development."
As reported in The Irish Times earlier this month, global cutbacks in the technology market and doubts about high investment in new technologies influenced Eircom's decision to pull out. The company had been awarded €12.4 million under the National Development Plan for projects aimed at closing the "digital divide" between Dublin and the regions.
The installation of fibre-optics and digital subscriber line technologies intends to provide areas such as north Donegal and west Kerry with high-speed Internet and multimedia connections.
"From the west's point of view, this communications plan is crucial and is a key part of BMW development," Mr Higgins said. "Eircom is best equipped to carry out this work, and if it is a case of more funding, then the Government must come up with a package to bridge that gap."
The Erris region could become the energy capital of the State, according to Mr Higgins. Plans by Bord na Mona to erect a large wind farm could be augmented by private wind farm projects, a gas-powered generating station and a peat-powered station, he said.
It is understood that PowerGen and Eirtricity are among two private firms examining power projects in north Mayo. Corrib gas will be brought ashore, providing a ready supply for a gas-powered electricity generating station. "It would be a crying shame, a scandal and a sin if the gas is not harnessed by way of a massive gas station," said Mr Higgins.
That proposal has the support of the operators of the Corrib gas field, Enterprise Energy (Ireland) Ltd. Bord na Mona supplies milled peat to the ESB for its peat-powered electricity generating station in Bellacorrick in north Mayo. The station is due to close between 2004 and 2005 with the loss of over 300 jobs.
It is one of five peat-powered stations due to close under an agreement involving the EU, Department of Public Enterprise, the ESB and unions.
These plants will be replaced with two new peat plants in Lanesboro and Shannonbridge, and Mr Higgins asks why one cannot be located in north Mayo where there are thousands of acres of bog. "There is no reason why that decision cannot be revisited. The raw material is there and the workforce is in place. Why cannot the Government give the same commitment to Erris as it gave to the midlands?"
Those sentiments are echoed by the Northwest Mayo Development Action Group, which is made up of Bord na Mona and ESB employees. Spokesperson Mr Richard Cosgrove said employees were concerned about the area's future. Bord na Mona workshop."
The stumbling block is the low capacity 110kv power lines. "Power lines need to be upgraded for any of this development to take place," said Mr Cosgrove. ESB spokesman Mr Michael Kelly said the company had the resources to carry out the upgrade but they had to go through the normal planning permission channels.
The IDA has said it is not possible for a major industry to locate north of the line from Galway to Dublin because of the lack of power, according to Mr Higgins. A report due shortly from the Western Development Commission will reveal that 95 per cent of all new industry in the west since 1996 went to Galway and Clare.
Bord na Mona's general manager in Mayo, Mr John Lynch, said the company was seeking input from local people on a proposed wind farm on a site adjacent to the existing wind farm in Bellacorrick. The proposals would be for "a 200 megawatt station, at least". A new group, the Mayo Energy Strategy Working Group, has been set up to deal with the power issue in the west.