Dáil Éireann debate -
Thursday, 2 Apr 1998

Vol. 489 No. 5

Written Answers. - ESB Cost and Competitiveness Review.

Ruairí Quinn

Question:

15 Mr. Quinn asked the Minister for Public Enterprise if she has satisfied herself that the cost and competitiveness review agreement in the ESB will be implemented in full; and if she will make a statement on the matter. [8390/98]

Minister for Public Enterprise (Mrs. O'Rourke)

The CCR is designed to prepare ESB for a future based on competition. It is critical for the competitiveness and future success of the company that the savings agreed in the CCR are delivered in full. I can inform the Deputy that implementation of the CCR is proceeding very satisfactorily.

The agreement provided for a reduction in staff numbers of 2,000 and £58 million in net annual cost savings. Around 1,400 staff have already left the ESB under the voluntary severance scheme and the remaining exits will take place in 1998 and 1999.

Other agreed savings including those on materials and those arising from changes in work practices are also on target.

As a result the full target net savings of £58 million per annum by the year 2000 will be achieved.

The spirit of partnership underlying the CCR and the new culture which implementation is creating at every level in ESB will ensure a continuing emphasis on cost efficiency in the years ahead. This will help ESB and its workforce to meet the challenges and opportunities provided by competition on an on-going basis.

The CCR demonstrates the ability of ESB to develop and carry out a major process of change and I have every confidence, as a result of this unique exercise in partnership, that ESB will remain a major player in the electricity sector in Ireland in the years ahead.