Desmond J. O'Malley
Ceist:10 Mr. O'Malley asked the Minister for Transport, Energy and Communications if the ESB corporate strategy 1996 has been approved by him; and if he will make a statement on the matter. [19575/96]
Written Answers. - ESB Corporate Strategy.
The ESB published its strategy document, entitled ESB: Confident and Competitive, last month. Prior to its publication the chairman and chief executive of the company formally presented me with a copy.
The corporate strategy represents ESB's blueprint for the strategic development of the company in the coming years. The strategy document agreed by the board sketches corporate strategic direction in the light of the ongoing implementation of the CCR agreement and is a follow-on from the CCR process. The strategy builds on the change and cost improvement programmes already under way in the ESB.
The main planks of the ESB's strategy are the defence of the ESB's position in the Irish market and the securing of profitable new market opportunities with the overall aim of ensuring a successful future for the ESB in the new electricity supply industry in Ireland.
The main elements of the strategy are: profitable growth, market positioning, driving competitiveness, and customer focus.
The strategy sets out certain key targets including: 2,000 voluntary exits, £58 million in net annual savings agreed in the CCR, movement towards a new corporate financial target of 12 per cent and a new customer charter with performance targets.
Clearly the ESB, Ireland's first established State company, is heading into a period of great change. The elimination of its monopoly position and the introduction of competition into the electricity market will subject the ESB to new and powerful challenges. It is vital that the company is prepared for the new environment and a strategy which clearly sets out its objectives as well as the means of their achievement is crucial to its future success.
The success of the strategy is principally dependent on the successful implementation of the CCR. I am pleased to say that implementation is proceeding satisfactorily and achievements to date are well on target.