Dáil Éireann Debate, Thursday - 23 May 2013
17. Deputy Bernard J. Durkan asked the Minister for Public Expenditure and Reform if he will outline the full extent of the anticipated disposal of any State assets in the context of public expenditure reform and the targets set in the context of the Troika agreement by his predecessors; and if he will make a statement on the matter. [24673/13]
View answer19. Deputy Richard Boyd Barrett asked the Minister for Public Expenditure and Reform if he will provide a progress report on the consideration of State asset disposals such as Coillte and other State assets; and if he will make a statement on the matter. [24624/13]
View answerI propose to take Questions Nos. 17 and 19 together.
The House will be aware from my announcement in February of last year of the overall shape and scale of the State asset disposal programme that is being pursued. In brief, the disposal programme that the Government has agreed consists of:
The sale of Bord Gáis Éireann’s energy business (but not including BGÉ’s gas transmission or distribution systems or the two gas interconnectors, which will remain in State ownership);
The sale of some of ESB’s non-strategic power generation capacity;
Disposal of the State’s remaining shareholding in Aer Lingus, when market conditions are favourable in circumstances that accord with Government transport policy and at an acceptable price to Government;
After further consideration, and having ruled out the sale of Coillte’s land holdings, the Government has also determined that a concession for the harvesting rights to Coillte forests would be proposed for sale.
I am pleased to report that significant progress has been made to-date: Bord Gáis Éireann formally launched the sale process for its energy business on 3rd May last and I expect that the sale will be concluded by the end of this year. ESB is also about to commence the sale of some of its non-strategic power generation assets, as announced last October. I expect that the sale of two of ESB’s overseas assets – at Marchwood in the UK and Amorbieta in Spain – will complete in 2013.
In regard to Aer Lingus, the European Commission’s recently completed investigation of Ryanair’s bid for the company has been a complicating factor in the disposal of the State’s stake. The UK’s Competition Commission has now also reopened its investigation into Ryanair’s holding in its rival. Until this and possible appeals processes are exhausted, it is unlikely that optimal conditions will exist for a sale of the Government’s remaining shareholding. Nevertheless, the Government remains open to considering opportunities to dispose of its shareholding and will, in the meantime, continue to manage the holding in a responsible manner in order to protect the State's interests and with the aim of maximising its value.
In regard to Coillte, on foot of the Government’s decision last year that a concession for the harvesting rights to the company’s forests be considered for sale, an Inter-Departmental Steering Group was established, comprising representatives of my Department, the Department of Agriculture Food and the Marine and NewERA, to progress the proposed transaction and advise on how it should be implemented.
The Steering Group has worked closely with Coillte to analyse the various financial, policy and technical issues that arise in the context of a sale of harvesting rights. These covered all of the concerns that have been raised by various interest groups, including, amongst others, the issue of public access to the forests, replanting obligations to ensure the continued existence of our forests, harvesting policy, the issue of supply of timber to sawmills, as well as the implications for a post-transaction Coillte. In this context, the Steering Group also met with representatives of the Coillte Board and management, representatives of the Coillte Group of Unions, and the Chairman and members of the Irish Timber Council.
A number of detailed financial, technical and other specialist reports were also prepared for Coillte in late 2012 by external specialist consultancy bodies, in full consultation with the Board of Coillte and its executive management, which have also been considered by the Steering Group.
The Steering Group has now reported to the Minister for Agriculture Food and the Marine and myself in relation to its work to date. It is our intention to bring a memorandum to Government on this matter in the near future.
