Dáil Éireann Debate, Thursday - 23 January 2014
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NewERA Remit
40. Deputy Michelle Mulherin asked the Minister for Finance if he will report on the progress to date of NewERA; if he will identify which of its original functions it is performing fully and its original functions it is not performing fully; when it is expected to perform the functions fully; and if he will make a statement on the matter. [3376/14]
View answerIn September 2011 the Government announced the establishment of NewERA, initially on a non-statutory basis, within the NTMA. The core activities of NewERA since its establishment have been: advising on the disposal or restructuring of State assets; activities to facilitate investment in economic infrastructure; and provision of corporate finance and governance advice in respect of certain State entities and assets.
These activities have involved NewERA providing independent corporate finance advice and financial analysis to Government on a range of issues across its remit and actively engaging with relevant stakeholders and Government Departments. Its work to date includes the following:
State Asset Disposals
NewERA is advising the Government in relation to the sale of BGE's energy business. A consortium comprising Centrica plc, Brookfield Renewable Power Inc and iCON Infrastructure was selected on 12 December as the preferred bidder for the business.
NewERA provided advice to the relevant Government Departments in relation to the sale in November 2013 of ESB's 50% shareholding in UK-based Marchwood Power Ltd where it achieved a price above expectations and which, it is anticipated, will realise €140 million in dividends for the Exchequer this year.
Following the June 2013 Government decision in relation to Coillte, the restructuring of the company will be overseen by NewERA and the relevant stakeholder departments. NewERA is also undertaking further financial analysis to evaluate how to give effect to a beneficial merger of Bord na Móna and Coillte (this will involve analysing possible synergies between the investment programmes of Bord na Móna and Coillte).
Activities to Facilitate Investment in Economic Infrastructure
NewERA has also been working with the relevant Government Departments and other stakeholders on investment initiatives in the areas of water, energy retrofit, export wind and broadband.
Corporate Finance and Governance Advice
NewERA has provided detailed financial analysis and recommendations (where appropriate) to relevant Ministers on requests for Ministerial consents received from the relevant commercial State entities (ESB, Bord Gais Eireann, Bord na Móna, Coillte and EirGrid)-"CSS" entities. These requests primarily stem from legislative obligations on the CSS entities to seek Ministerial approval (e.g. for an entity to borrow) or arise under the Code of Practice for the Governance of State Bodies. This analysis includes (where appropriate) a financial review of the relevant CSS entity's capital investment programmes.
NewERA has begun the process of reviewing the dividend policies of the CSS entities and has provided advice to the relevant Government Departments on a revised dividend policy for ESB, which was announced by ESB on 23 October 2013, and which provides for an increased dividend pay out to the State from 2015.
Current status
In June 2013 the Government announced legislative proposals for putting NewERA on a statutory basis and the Heads of the NTMA (Amendment) Bill which will, inter alia, put NewERA on a statutory footing are with the Office of the Attorney General for drafting. This Bill will also provide for the establishment of the Ireland Strategic Investment Fund (ISIF) by reorienting the National Pensions Reserve Fund and making the €6.4 billion in the Fund's discretionary portfolio available for commercial investment in Ireland.
An interdepartmental Steering Group (chaired by the Department of Public Expenditure and Reform) has been tasked with reviewing the options of of moving to a full holding company structure for the ownership of commercial State companies with the Group to report to Government on the matter in due course.
