Vol. 412 No. 5
6 Mr. G. Mitchell asked the Minister for Finance if, in view of the obligations devolved on his Department by the Ministers and Secretaries Act, 1924, he has taken steps to protect the revenues of the State in regard to receipts from privatisation of State boards and/or agencies; and if he will make a statement on the matter.
The gross receipts in respect of the sales of shares in Irish Life plc and Greencore plc were paid into the Exchequer in accordance with section 2 (4) of the Insurance Act, 1990, and section 2 (5) of the Sugar Act, 1991, respectively. These payments were made immediately on completion of the sale of the shares. The Exchequer also received interest on various moneys subscribed in the periods between publication of the Offers for Sale and the dates of completion of the sales. The costs of consultancy and financial services in connection with the sales were borne on Subhead A2 of my Department's Vote. Every effort was made to maximise the value received by the Exchequer in both cases and to ensure that costs were as low as possible, consistent with a successful outcome.
Under the Ministers and Secretaries Act, 1924, there is a statutory role on the Department of Finance to protect the public finances, including revenues due from the sale of State assets. Will the Taoiseach tell the House who authorised the chairman of Telecom Éireann to seek a report on the sale of that most valuable State asset from a close friend, confidant and colleague, Mr. Dermot Desmond?
I would be glad if Members would have regard to matters deemed sub judice.
I am dealing here with the actual sale of two semi-State companies. I have no questions about any other privatisation matters.
May I ask the Taoiseach if it is in order for state boards on their own initiative to seek reports on the privatisation of those boards — particularly when a member of the board may have an interest in acquiring the asset — without the consent of the Minister for Finance, given his duties under the Ministers and Secretaries Act, 1924?
The Deputy is talking about a study carried out by a semi-State company as to their future and possible privatisation. The Act to which the Deputy refers in his question deals with the actual sale of semi-State companies or any other State assets. In so far as that is concerned, I can assure the Deputy that all proceeds and possible income from the sale were made available to and immediately lodged into the Central Fund account.
I could not go so far as to say that it is not in order for a semi-State company to consider aspects of their future financing, such as privatisation, part-privatisation or taking in shareholders from the private sector. I could not rule that out. I think any major semi-State company would be entitled from time to time to consider those sort of options.
Arising from his reply, may I ask the Taoiseach if, in view of the transparent possible conflict of interest in the chairman of a State board seeking such a report from a colleague and friend where he has an interest in acquiring a company, he will direct that the code of ethics which I understand he has asked the Secretary of his Department and others to draft, would include terms of reference which would cover conflict of interest in such situations?
I agree with the Deputy that it certainly should in the sort of circumstances outlined by him.
