Dáil Éireann debate -
Tuesday, 12 Feb 2002

Vol. 548 No. 2

Written Answers. - Semi-State Bodies.

Bernard J. Durkan

Question:

139 Mr. Durkan asked the Minister for Public Enterprise the number of public companies which have undergone flotation or other forms of privatisation; the extent to which she has examined future proposals in this regard; and if she will make a statement on the matter. [4817/02]

Minister for Public Enterprise (Mrs. O'Rourke)

The Government approved the sale of Cablelink, which was 75% owned by Telecom Éireann and 25% by RTE, in April 1998. Telecom Éireann, RTE and NTL signed a sale and purchase agreement in July 1999. On 14 December 1998, Aer Lingus sold its aircraft maintenance subsidiary, TEAM Aer Lingus, to FLS Industries, a Danish multinational company as part of its policy of exiting non-core business activities. The initial public offering of shares in Telecom Éireann took place in July 1999. On 16 July 2001, the commercial assets and businesses of the Irish National Petroleum Corporation – the company's two commercial subsidiaries, the Irish Refining Company and Bantry Terminals Limited – were sold to Tosco Corporation, a major US oil refiner and marketer. There are no plans to privatise the INPC's non-commercial subsidiary, the National Oil Reserves Agency.

As I said on previous occasions, 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. In a number of cases, conversion to Plc status through primary legislation is a prerequisite to any change of ownership.

The following is an update on the position in relation to the commercial State companies, under my aegis: Aer Lingus: Following the events of 11 September 2001, the Government decided on 23 October 2001 that, provided a survival plan aimed at restoring Aer Lingus to viability was rapidly agreed and implemented in all its essential aspects, the Government would facilitate private sector interests and the staff of the airline in an investment in Aer Lingus to secure the future cash needs and development of the company. Considerable progress has been made on the increased staff shareholding in the company and I expect talks to resume on this matter shortly. In relation to private sector investment, preparatory arrangements for the process have been agreed between my Department and Aer Lingus. However, arrangements to give effect to this decision will not be activated pending resolution of the pilots' dispute; Aer Rianta: No Government decision has been taken in respect of the recommendation of the board of Aer Rianta that there be an IPO of a minority shareholding in that company; Irish Aviation Authority, IAA: There are no plans to privatise the IAA, 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; CIE: In regard to the CIE group of companies, the consultation paper entitled A New Institutional and Regulatory Framework for Public Transport was published by the Government in September 2000. It sets out a number of proposals regarding the restructuring of the CIE companies including the possible privatisation of the bus companies. These proposals are currently the subject of consultation with the Public Transport Partnership Forum which was established under the terms of the Programme for Prosperity and Fairness; ESB: There are currently no plans with regard to the flotation-privatisation of ESB; Bord Gáis Éireann: I have asked the board of BGE to consider alternative options to an IPO for meeting the current financial and commercial needs of the company; Bord na Móna: There are currently no plans with regard to a privatisation of Bord na Móna; An Post: Investigations by An Post into alliance possibilities is an ongoing process. I understand there are indications of interest but it is too early yet to judge the eventual outcome. I expect the board of An Post to report back to me on this matter later this year.