Dáil Éireann Debate, Tuesday - 28 February 2012
69 Deputy Mick Wallace asked the Minister for Public Expenditure and Reform his views on whether any sale of State assets at this junction is unlikely to achieve the best possible outcome for the State; his further views on whether the sale of State assets may bring short-term gain but will have seriously negative consequences for this country in the long term; and if he will make a statement on the matter. [11250/12]
View answer80 Deputy Martin Ferris asked the Minister for Public Expenditure and Reform if the decision to sell State assets is in the public interest. [11214/12]
View answer83 Deputy Mick Wallace asked the Minister for Public Expenditure and Reform his views on the fact that the sale of State assets will inevitably lead to job losses in these companies; and if he will make a statement on the matter. [11249/12]
View answerI propose to take Questions Nos. 69, 80 and 83 together.
In comparison with the prospect that we faced when this Government came to power last year, I am confident that the asset disposal programme that I announced last week can have a significantly positive outcome by driving competition in the energy sector and facilitating much needed investment in our economic recovery.
Instead of a programme of asset sales of €5bn to be used exclusively to off-set debt, which is what the Troika was originally pressing for, we have achieved a significant breakthrough on how the proceeds of asset disposals are to be used. In return for committing to a disposal programme of up to €3bn, which is a more ambitious target than we had originally provided for in the Programme for Government, the Troika has agreed to the retention of one-third of the proceeds for reinvestment in the economy.
In deciding on the programme that I announced last week, the Government has been careful to safeguard the position of strategic infrastructure such as the electricity and gas networks and Dublin port and the House will have noted that they are not part of the disposal programme and will remain under State control.
Apart from the receipts from the sale of assets that the Government will retain for reinvestment in the economy, the sale of certain business units of State companies actually offers the prospect of access to significant new capital to grow these businesses, which might not have otherwise have been available, given the current position in capital markets.
