Sale of State Assets

Dáil Éireann Debate, Wednesday - 9 July 2014

Wednesday, 9 July 2014

Questions (31)

Seán Fleming

Question:

31. Deputy Sean Fleming asked the Minister for Public Expenditure and Reform if the report of the European Commission post-programme review is correct in its assertion that the State will raise €500 million in revenue from asset sales; and if he will make a statement on the matter. [29677/14]

Written answers

Minister for Public Expenditure and Reform

As the Deputy's question notes, the European Commission's Spring 2014 Post-Programme Surveillance Report on Ireland estimates that the sale of Bord Gáis Energy and two ESB power plants could, in their words, yield up to €500 million in government revenue in 2014. Deputies will appreciate that this represents the Commission's view of potential receipts. For my part, I am pleased to inform the House that, so far during 2014, the Exchequer has received over €197m in special dividends from the ESB, as a result of the sale of overseas assets in the UK and Spain, and that this week a special dividend of €150m was received from Ervia (formally Bord Gáis Éireann), representing the first instalment of proceeds from the sale of Bord Gáis Energy, which transaction was completed at the end of June.

Further special dividends will accrue from that sale.  I am conscious that, under EUROSTAT rules, there are limits to the amount of such dividends that can benefit the GGB in any one year. In addition, further dividend payments by the company must await finalisation of the internal restructuring of Ervia, which will involve the establishment of the proposed new gas networks company in accordance with the Gas Regulation Act 2013 and the refinancing of its debt facilities as part of the re-organisation.  This is expected to be completed later this year.  I understand that Ervia's annual report is to be submitted to Government for approval shortly, at which point further detail on the Bord Gáis Energy sale, and the proceeds arising for the Exchequer as a result, will be announced by Ervia.

And finally, the ESB is currently finalising its plans in relation to its midlands peat plants, which are also expected to yield a further special dividend for the Exchequer in the near future.