Dáil Éireann Debate, Tuesday - 18 November 2014
182. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 218 of 11 November 2014 the nature of the convertible debt instrument that will be issued by Irish Water; if this will be sold to a private investor or investor; if in certain circumstances this will allow a private investor to convert the instrument into an equity holding in Irish Water; and if he will make a statement on the matter. [44168/14]
View answerIt is proposed that the Minister for Finance will subscribe for a Convertible Debt Instrument issued by Irish Water in an amount of €54 million. The Convertible Debt Instrument will be redeemable in a term of two years or can at the discretion of the Minister for Finance be converted into shares in Irish Water. These shares would, of course, be held by the Minister for Finance as he is the person subscribing for them. The legal instrument authorising the Convertible Loan note will contain a clause which prevents its future sale to any private concern.
The Water Services Act 2013 provided for the establishment of Irish Water as an independent subsidiary within the Bord Gáis Éireann Group, to be formed and registered under the Companies Acts. Section 5 of the Act provides that the shareholders of Irish Water are Ervia (formerly Bord Gáis Éireann), the Minister for the Environment, Community and Local Government and the Minister for Finance. Section 46 of the Water Services (No. 2) Act 2013 prohibits the shareholders from disposing of their shareholding in Irish Water, which in effect places a statutory prohibition on the privatisation of Irish Water.
The following revised reply was received on 20 November 2014:
It is proposed that the Minister for Finance will subscribe for a Convertible Debt Instrument issued by Irish Water in an amount of €54 million. The Convertible Debt Instrument will be redeemable in a term of two years or can at the discretion of the Minister for Finance be converted into shares in Irish Water. The number of shares concerned would be split equally between the Minister for Finance and the Minister for Environment, Community and Local Government. The legal instrument authorising the Convertible Loan note will contain a clause which prevents its future sale to any private concern.
The Water Services Act 2013 provided for the establishment of Irish Water as an independent subsidiary within the Bord Gáis Éireann Group, to be formed and registered under the Companies Acts. Section 5 of the Act provides that the shareholders of Irish Water are Ervia (formerly Bord Gáis Éireann), the Minister for the Environment, Community and Local Government and the Minister for Finance. Section 46 of the Water Services (No. 2) Act 2013 prohibits the shareholders from disposing of their shareholding in Irish Water, which in effect places a statutory prohibition on the privatisation of Irish Water.
