Dáil Éireann Debate, Thursday - 23 January 2014
96. Deputy Michelle Mulherin asked the Minister for Public Expenditure and Reform if NewERA has advised the Government to restructure any semi-State companies; what are those companies; the savings expected to be made for each of the companies that are to be restructured; and if he will make a statement on the matter. [3377/14]
View answerNewERA is involved in a number of Inter-Departmental Groups dealing with various aspects of the commercial State sector and, in particular, the management of sale transactions under the State assets disposal programme. NewERA has, in this context, provided advice on a number of matters including those to which the Deputy's question refers.
For example, in the case of Coillte, on foot of the findings of the Inter-Departmental Steering Group established to progress the sale of Coillte harvesting rights, the Government decided last June that it was not the appropriate time to proceed with such a sale, and that the focus should, instead, be on restructuring the company. The Government agreed, inter alia, that:
- Coillte is to undergo a fundamental restructuring, to be overseen by NewERA and the relevant stakeholder Departments, which will include operational streamlining, financial de-leveraging and a critical examination of the disposal options for its non-core activities such as telecoms and wind; and
- A robust analysis will also be carried out to evaluate how to give effect to a beneficial merger of Coillte with Bord na Mona to create a streamlined and refocused commercial state company operating in the bio-energy and forestry sectors, as committed to in the Programme for Government.
A draft report on the financial costs and benefits of a Coillte/Bord na Mona merger was prepared by NewERA in conjunction with the companies and circulated to relevant Departments in late 2013. This is currently under discussion with the Departments, and is expected to be finalised shortly and submitted to the relevant Ministers for consideration myself, the Minister for Agriculture, Food and the Marine and the Minster for Communications, Energy and Natural Resources.
In the case of Bord Gáis Éireann, and also within the context of the relevant inter-Departmental Group(s), NewERA has advised on restructuring required to meet the unbundling requirements of the EU Third Energy Directive, as well as to allow for the sale of Bord Gáis Energy and the establishment of Irish Water as an independent subsidiary within the BGE Group.
It is, as yet, too early to determine the savings that will be achieved from these restructuring proposals.
