I welcome the opportunity to contribute to this important debate on the semi-State sector, because in all the drama and hype of the past few weeks it seemed on some occasions, in regard to the contributions from the Opposition parties, that the overall policy objectives and needs of workers and consumers were being lost sight of.
A secure and prosperous future for the commercial semi-State sector is important to Democratic Left and to this Government. When we sat down last December to negotiate a possible programme for government with Fine Gael and Labour this issue was close to the top of our agenda, and the priority it received in the negotiations is reflected in the strong commitments which were included in the Programme for a Government of Renewal. In view of the deliberate attempts by those on the other side of this House to distort the intentions of this Government and to frighten workers in this sector, let me quote what the programme says:
This Government will revitalise public enterprise. Policy will change from a reactive to a more interactive approach. It is recognised that dramatic change will occur in State companies. The twin drivers of technological change and EU competition rules will significantly affect what were once "natural monopolies" in the State sector.
Our approach to these inevitable forces will be to ensure that all changes in these companies will be managed in the best interest of employees, taxpayers and consumers. Employment maximisation within the competitive environment will be a key objective and the development of these companies will be a priority.
State assets will not be sold except where it protects employment and is in the long-term strategic interest of the company and its stakeholders... Opportunities for expansion to utilise the bank of skills in these companies will be encouraged.
Commercial State bodies will be given a clear commercial mandate and clarity in the financial targets which measure their performance. Where social obligations are imposed, they should be paid for separately.
The Government remains committed to these principles and the Minister for Transport, Energy and Communications, Deputy Lowry, will have our full support in implementing them.
Public enterprises have made an immeasurable contribution to economic and social development here over six decades, they have, often in the most difficult circumstances and frequently with little or only grudging support from a succession of governments, provided a range of badly needed services for the public and tens of thousands of reasonably well paid jobs for workers.
We should remember that in most cases public enterprises were established because of a refusal or an inability of private enterprise to do the job.
Semi-State companies were established to provide a national transport system and to process sugar because privately owned companies in these sectors had failed. They were established in air transport and electricity generation where private firms were unable or refused to provide the massive investment required.
Despite some spectacular failures, the commercial semi-State companies have served this country well and those who work in them have the right to be proud of their contribution. This country would have been economically and socially poorer without their contribution and their effort.
The commercial semi-State companies like Telecom Éireann, CIE and the ESB employ more people than any private enterprise company and are hugely important. Between them they employ some 60,000 people and have a turnover of more than £4 billion each year.
As the Programme for Government notes, the twin drivers of technological change and EU competition rules are radically altering the environment in which these companies operate, and if they want to survive and prosper they must change. Anyone who tries to suggest that there is no need for change is not a friend of the semi-State sector or its employees.
Many of the employees and most of the trade union leadership now accept the need for radical change. This approach is best illustrated by the progressive step the Telecom unions took last year when they published their document "The Future of Telecommunications". Rather than waging a futile battle to resist inevitable change, they set out to influence the sort of change that will take place and unions in other areas are now following suit.
The best way to effect the change that everyone agrees is needed and to ensure the future of the companies is through a partnership approach, co-operation between the Government, the boards of the companies and the workers. Despite the criticism of the Minister, Deputy Lowry, by some trade union leaders, the Minister has in fact shown himself to be far more open to innovation and change in the interest of workers than any previous occupant of this office.
One of the most amusing aspects of the events of the past few weeks has been the efforts of Fianna Fáil and the Progressive Democrats to depict themselves as friends of the semi-State workers. They must think that those who work in the sector have very short memories. People remember the outrageous deal that Deputy Brennan brokered in 1991 when he sold the B & I to a hand-picked purchaser against the wishes of workers and despite the vehement opposition of the chairman and board.
Indeed could anything greater contrast the record of this Minister and his predecessor than their performance in regard to Aer Lingus and Aer Rianta? Deputy Cowen's handling of Aer Lingus — and the contributions of Deputy Geoghegan-Quinn and Deputy Brennan before him — brought the company to the verge of collapse. Under Deputy Cowen, there were industrial disputes and civil disorder at the airport. In contrast Minister Lowry has backed up the groundbreaking agreement on employees' participation in Aer Lingus recently agreed between management, unions and employees. In Aer Rianta he has given wholehearted support to the major innovation of a compact between management and staff under the umbrella of the joint union group which will facilitate productivity changes in the years ahead.
These models can be followed in other companies. The Government, as the stakeholder on behalf of the public, is committed to securing change through a process of dialogue, consultation and negotiation. All State enterprises have the skills and expertise in management and workforce to meet the major challenges stemming from increased competition and deregulation. From my contacts with workers in that sector I sense a tremendous commitment to face up to the problems posed by globalisation, competition and restructuring.
We in Democratic Left see the commercial semi-State sector securing its future by setting new standards of excellence in terms of performance and customer service. In my view that sector can be at the forefront of technological innovation, using the collective intelligence of workers and managers to develop new flexible and imaginative strategies to respond to the needs of tomorrow's world.
This, of course, means being willing to change old structures which inhibit the capacity to compete and grow in new circumstances. The prospect of shared ownership along Aer Lingus lines, where employees have become shareholders, offers a model for this and there must also be increased customer involvement in such enterprises. We also welcome the creation of a number of viable subsidiary companies with the capacity to adapt to particular needs and, where necessary, raise their own capital to fund further development and innovation. Far from accepting the inevitability of decline or privatisation, the semi-State sector offers the possibility of a new model of socially responsible enterprise that will be efficient, flexible and commercially viable. It can do this because, unlike private enterprise, it can offer economic, social and environmental responsibility combined with public accountability and shared ownership. Because I believe in a good future for the commercial semi-State sector, I fully support the demands of the Minister, Deputy Lowry, for the highest possible standards from all concerned with the board and management of those companies.
We must not have any element of a double standard which expects accountability, efficiency and effectiveness from employees but does not demand similar standards from those at the highest level. I have confidence in the Minster's determination to ensure that only one standard will apply, the highest possible standard of accountability. If we do not have this we will face a continuing cycle of cynicism and doubts among workers and the public about the motives of those at the top.
We require an atmosphere in semi-State companies that will facilitate the growth of mutual respect and real partnership between management and workers. There must be public confidence in those charged with the management and direction of those companies. The people are correct to demand value for money and the transparency to see they are getting it. It is our responsibility as politicians to restore public confidence in the commercial semi-State sector and build morale among the workers. We must remove any semblance of an inner circle of power brokers linked to a golden circle in the business world using the power and privilege of the political system for personal gain.
I have never believed that corruption or malpractice was widespread in the public sector. It is more as the Minister, Deputy Lowry, stated last August, that the system is flexible enough to allow a few people to manipulate affairs to their advantage. The shocking details we heard last week of the manner in which the Horgan's Quay site sale was conducted is a vivid example of this.
It is unfortunate the report of the task force did not receive more attention from the media or the Opposition when it was published by the Minister last week. As well as offering assurances that the control ethos is strong in the commercial State companies it also made a number of important proposals for reforms and improvements. I was particularly pleased to hear the Minister state that he intended to devolve further power to the boards by giving them the authority and necessary flexibility to operate in an increasingly competitive environment.
The Minister also accepted in principle six recommendations with regard to the boards of commercial State companies which can only improve the quality of those in charge of those vital interests and most important among these is the principle that people appointed as directors should be appointed solely on the basis of their experience, competence and expertise.
I do not intend to go over all the matters covered in detail in the media other than to say I believe the Minister, Deputy Lowry, is an honest man who acted reasonably at all times on the basis of information available to him. Deputy Ahern addressed a question to Democratic Left last night. He asked if we stood with the Minister or with the semi-State workers. Our first concern is the interest of the workers in those companies and that can be guaranteed only by the implementation of the Government programme. The Minister is implementing that programme and in doing so he will have our full support.
I will finish by putting a question to the two Deputy Aherns, as Deputy Dermot Ahern is smiling like a Cheshire cat.
