Vol. 505 No. 4
28 Ms Shortall asked the Minister for Finance if it is Government policy not to provide further capital funds to semi-State bodies in view of the fact that reports in respect of Aer Rianta and Aer Lingus carried out by independent consultants both indicate that this is the case; and if he will make a statement on the matter. [13845/99]
The Government in its policy manifesto An Action Programme for the Millennium makes it clear that it intends to take a practical rather than an ideological approach to the future of State companies working in the spirit of social partnership and consensus. It is committed to doing whatever is necessary to enable State companies to be competitive and cost-effective providers of vital public services to the benefit of the consumer. Additional capital needs, when they cannot be met internally, can be met through strategic alliances, employee share participation, or through long-term investment by pension funds. The objective of this approach is to ensure that they remain growing vigorous healthy companies providing high quality employment at home and abroad.
At the moment, there are many alternative uses for Government capital spending including, for example, expenditure for the development of the national infrastructure. Equity markets are available for companies operating in the sectors in which State companies operate to finance their capital needs. As the Deputy is also aware Irish pension funds have indicated for a long time that they would welcome further investment opportunities in the Irish economy. This would obviate the need for the diversion of resources to overseas equity markets.
