Dáil Éireann debate -
Tuesday, 16 Feb 1999

Vol. 500 No. 4

Written Answers. - Job Creation.

Austin Deasy

Question:

57 Mr. Deasy asked the Tánaiste and Minister for Enterprise, Trade and Employment if she has formulated any ideas, following her recent visit to New Zealand, as to the way in which job creation could be increased substantially by the privatisation of under performing State enterprises. [4245/99]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I have always believed that privatisation had a role to play in improving the efficiency of the Irish economy. That does not mean that every State-owned entity should be privatised. A pragmatic approach is required and that is the approach which is being taken by the Government.

Work is progressing elsewhere on the sale of Telecom Éireann, ICC Bank, ACC Bank and TSB Bank. The situation of other State companies is being examined on a case by case basis.

All privatisations will be managed in a spirit of partnerhsip, with the possibility, in appropriate circumstances, of significant shareholdings being made available to the employees on attractive terms.

It is my view that the primary role of the State should, as far as possible, be that of regulator, not operator. It makes no sense for the State to try to regulate a highly competitive telecoms market, for instance, while itself owning the biggest player in that market.

When my own party first advocated privatisation in this country back in the mid-1980s we were heavily criticised. Since then, privatisation has become the norm right around the world. It is a pity that Ireland has fallen so far behind our competitors in the process of privatisation and deregulation but I am confident that most of the ground lost will be made up under the current administration.

As for the only State enterprise within the remit of my Department, namely Irish Fertilizer Industries, I would refer the Deputy to the reply I have provided to a priority question on this matter.