Dáil Éireann Debate, Tuesday - 11 May 2021
142. Deputy Dessie Ellis asked the Minister for the Environment, Climate and Communications the role he has with regard to the management or otherwise of the ESB; and if he will make a statement on the matter. [23694/21]
View answerESB is 96.1% owned by the Irish Government. The Minister’s role is shareholder of ESB together with the Minister for Public Expenditure & Reform on behalf of the Government. Following the establishment of NewERA in 2011, the Government began the process of reforming the management of the Government’s shareholder role in relation to the commercial state sector. As part of this reform, NewERA in conjunction with the relevant Government Departments developed a Shareholder Expectations Framework. The purpose of the Shareholder Letters of Expectation is to set out the views and expectations of the relevant Ministers as shareholders of the companies on matters including financial performance and dividend policy. These letters also set out the importance of striking the right balance between distribution of dividends and reinvestment in the business. As ESB is a commercial semi-state body which make decisions based on commercial prudence and overall fit with prevailing conditions and strategies, the Minister and Department cannot stipulate how ESB might proceed on specific projects or activities, as these are operational decisions for the Board and Management of ESB.
However, the Corporate Governance Framework notes that Shareholder expectation letters as required by the Code of Practice for the Governance of State Bodies, can cover matters such as dividend expectations, key financial performance indicators and governance arrangements.
