Dáil Éireann Debate, Thursday - 24 November 2016
163. Deputy Michael McGrath asked the Minister for Public Expenditure and Reform the reason dividends received from commercial semi-State companies were €304 million behind profile at the end of October 2016; and if he will make a statement on the matter. [36730/16]
View answerThe reason for dividends from commercial semi-State companies being behind profile by €304 million in the end-October Exchequer returns is due to a review of the timing of payment by Ervia, by way of special dividend, of the proceeds from the Bord Gais Energy sale transaction.
A special dividend payment of €370 million by Ervia, relating to the sale transaction, had been profiled to be received by end-October. However, this payment has now been rescheduled for receipt in December and will now be in the amount of €100 million rather than the €370 million originally profiled. The reason for this change in the timeframe for payment to the Exchequer of the remainder of the Bord Gais Energy sale proceeds, by way of special dividend, is in order to maximise the positive GGB impact of the transaction proceeds and thereby also maximise the potential use to which these funds can be put by Government, within the restrictions imposed by Eurostat accounting rules.
Stripping out the effect of the Ervia dividend, the position in relation to the dividends received from the other commercial semi-State companies would show that these are at 106% or €66 million ahead of profile.
