Dáil Éireann debate -
Tuesday, 20 Jun 2000

Vol. 521 No. 4

Written Answers. - Privatisation Programme.

Austin Deasy

Question:

35 Mr. Deasy asked the Minister for Public Enterprise the commercial companies in the public service which remain to be privatised; if she has a timetable for their privatisation; and if she will make a statement on the matter. [17298/00]

Minister for Public Enterprise (Mrs. O'Rourke)

I have said on several occasions that questions about the future ownership of commercial State companies fall to be determined on a case by case basis in the context of developments in their main business areas.

The position in relation to the commercial State companies under my aegis is as follows: the process leading to an initial public offering of shares in Aer Lingus is under way. In this regard, the Aer Lingus Bill, 2000, to provide the legal framework to enable the IPO to proceed was published on 14 June last. Depending on market conditions and the satisfactory finalisation of all preparatory stages for the IPO, it may be possible to complete the offering in the latter half of 2000 or early 2001.

In regard to the CIE group of companies, the Cabinet Committee on Infrastructural Development and Public Private Partnerships recently accepted in principle my proposals that consideration will be given to the transfer to private ownership of either Bus Átha Cliath or Bus Éireann within three years, most likely Bus Átha Cliath, as a key element of the introduction of competition into the Dublin bus market; consideration be given to the possible privatisation of the second bus company at a future date; and Iarnród Éireann be split into separate operating and infrastructure companies and that consideration be given in the future to privatising the operating company. I plan to bring those proposals to Government shortly.

There are currently no plans to privatise ESB. I have asked the board to review its future options to meet the challenges and exploit the opportunities provided by competition in the liberalised electricity market, including ownership, alliances and strategic partnerships. I expect the board to report to me in the autumn.

In relation to Aer Rianta, I am continuing to give detailed and careful consideration to the findings of the Warburg Dillon Read-AIB report on the future strategic direction of the company with a view to bringing specific recommendations to Government in this regard as soon as possible. It would not be appropriate to speculate as to what these recommendations might be in advance of Government consideration of the matter.

There are no plans to privatise Irish Aviation Authority, which was incorporated as a commercial state company in 1994 and is the safety regulator and the provider of air navigation services in Irish-controlled airspace.

There is no current timetable for BGE's privatisation. However, I have written to the chairman of BGE concerning the company's future structure and ownership and I have invited the board to put forward its views on the impact of liberalisation on BGE's structure and related issues such as public/private partnerships and future ownership. The BGE board are still considering these aspects and I would expect to hear from them later in the year.

I should also add that draft legislation is currently being prepared to establish BGE as a public limited company to allow it greater freedom to operate in a liberalised market.

There are no plans to privatise Bord na Móna plc. In December 1998 Bord na Móna was incorporated as a public limited company under the Companies Acts. On vesting day, 31 December 1998, Bord na Móna plc took over the staff, assets, liabilities and undertakings of Bord na Móna statutory corporation, which was dissolved on that day. The operating divisions of the company – peat energy, horticulture, solid fuels and environmental products – were incorporated as separate subsidiary companies in March 1999.

On transfer day, 1 April 1999, the staff, assets and so on of the board were transferred to the above-mentioned subsidiary companies.

The four companies are Bord na Móna Energy Limited, Bord na Móna Fuels Limited, Bord na Móna Horticulture Limited and Bord na Móna Environmental Limited.

In relation to An Post, the Government has given its approval for that company to initiate negotiations on a strategic alliance with a suitable postal operator in view of the changes in the postal sector in the EU. However, privatisation is not currently envisaged or planned for An Post.

As part of a Government decision of 23 February 1999 to approve an investment programme to upgrade the Whitegate refinery, INPC was requested to actively pursue and report on the scope for other commercial opportunities to underpin the refining operation, including possible joint ventures or a strategic partnership in activities ancillary to, or having a synergy with, the refining business.

In response to this request, INPC has been conducting a search process to identify business development opportunities, including the possible sale of equity in the company. It has recently received a number of formal proposals from interested parties, which it is currently evaluating. I am prepared to consider all suitable development opportunities for the company.