Dáil Éireann Debate, Thursday - 19 July 2012
6Deputy Éamon Ó Cuív asked the Minister for Communications; Energy and Natural Resources if he completed an impact analysis of potential job losses in the ESB or Bord Gáis when they are part privatised; if he will publish same; and if he will make a statement on the matter. [35808/12]
View answerThe Government has decided to dispose of Bord Gáis Éireann's energy business and some of the ESB's non-strategic power generation capacity as part of the State assets disposal programme. The Government has also reiterated its commitment to retaining the electricity and gas networks, as well as the two gas interconnectors in State ownership as national strategic infrastructure, critical for the delivery of secure, sustainable and competitive energy supplies.
The ESB will remain a vertically integrated utility, positioned more competitively in the all-island energy market and, in due course, in the integrated European market. The sale of Bord Gáis energy will support this dynamic, successful company and its employees to continue to invest and grow while enhancing competition in the energy market for the benefit of the economy and consumers.
I do not envisage job losses in the ESB or Bord Gáis Éireann as an outcome of the planned disposals. The proposed sales can deliver positive outcomes for Ireland's energy markets, the two State utilities and their employees, consumers and business. In this context, it is also important to underline that the Government has successfully negotiated with the troika to ensure that 50% of the sale proceeds will be available for reinvestment under the recently announced infrastructure stimulus package.
Significant progress has been made in implementing the asset disposal programme, in line with our commitments under the EU-ECB-IMF funding programme. Tender processes for the appointment of financial advisers to oversee the sale of Bord Gáis Energy have now commenced. My Department is also progressing priority actions to address necessary legislative, regulatory and financial issues with a view to commencing the disposal process in 2013.
The Minister has reassured me to some extent with regard to the position of the ESB. However, I am concerned in respect of what is happening with Bord Gáis in the context of its contracting work out to a company called Balfour Beatty. The process in this regard does not bode well for the future. I do not understand the technical aspects involved but binding national agreements were made to the effect that jobs would be maintained during the transfer. I am familiar with a well-established private company, M. P. Ryan Limited, in Clonmel, County Tipperary, and I am concerned about what is going to happen to its employees. These people have been treated very unfairly.
I tried to raise this matter as a Topical Issue. Deputy Martin Ferris raised it some time ago. While the Labour Court is examining the matter, the workers to whom I refer are being treated unfairly and are being pitted against the company that is providing the services. Pickets were placed at the premises of the company in Clonmel to which I refer, which had done all in its power to retain its employees and ensure that its various contractual agreements were fulfilled. It is sad when something of that nature occurs, particularly as the workers had good relations with the company and the latter was trying its best to look after them. Honest answers could not be obtained from Balfour Beatty and, as a result, legal advice had to be obtained and the Rights Commissioner Service had to be consulted.
Perhaps the Deputy might ask a question.
I accept this is a delicate matter. However, is the Minister in a position to indicate whether, if further privatisation occurs, assurances will be given to consumers and safeguards will be put in place in respect of both employees and private contractors of good standing whose services have previously been used by companies such as Bord Gáis? I am not stating that these private contractors have a right to retain contracts for ever. I am of the view, however, that where they are in place, contractual arrangements should be honoured. The Minister indicated that a financial consultant will be appointed to oversee the financial aspects involved in privatisation. Will he take steps to ensure that any commitments made and contractual arrangements entered into will be honoured?
The Deputy has acknowledged that no private company has a right to expect to retain any given contract. I presume he also accepts that it is not my job to micromanage matters in respect of contractors which might be recruited by Bod Gáis, as it is currently configured, or by a new privatised Bord Gáis Energy. Management make these calls and companies sometimes win contracts, while at other times they lose them. That is the rule of the marketplace. My concern is to ensure - as stated in connection with the previous question - that whomsoever is recruited for the provision of services by the main company is up to delivering leading-edge services. The quality of the services provided must measure up to best practice. I cannot become involved in the business of recommending one contractor over another or of intruding into the company's micromanagement of contractual engagements.
