Dáil Éireann díospóireacht -
Wednesday, 1 Oct 1997

Vol. 480 No. 7

Written Answers. - State Companies.

Bernard J. Durkan

Ceist:

32 Mr. Durkan asked the Minister for Public Enterprise her intentions in respect of the development of the public enterprise sector; the plans, if any, she has for the encouragement of increased job creation and competition both internally and externally; and if she will make a statement on the matter. [14951/97]

Pat Rabbitte

Ceist:

50 Mr. Rabbitte asked the Minister for Public Enterprise the proposals, if any, she has for the development of the commercial semi-State sector; and if she will make a statement on the matter. [14917/97]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 32 and 50 together.

I would refer the Deputy to the joint Fianna Fáil/Progressive Democrats policy document for Government Action Plan for the Millennium. This clearly sets out the Government's programme for the State companies. It states: Fianna Fáil and the Progressive Democrats in Government will take a practical rather than an ideological approach to the future of the State companies, working in the spirit of social partnership and consensus. We will do whatever is necessary to enable them to be competitive and cost-effective as providers of vital public services to the benefit of the consumer. Additional capital needs, where they cannot be provided internally, may be provided by means of strategic alliances, which may also enlarge their market, and by long-term pension fund and employee shareholding. Our aim is to have growing, vigourous, healthy companies serving the public well and giving high quality employment at home and abroad, regardless of any evolution in structure.

I will be doing everything possible to ensure that the 10 State-sponsored bodies that come under the aegis of my Department develop in line with the commitments in our programme for Government. In this regard I am very aware that the State companies have to have the necessary flexibilities required by modern companies operating, as they are, in highly competitive markets. The State companies are responsible themselves for their day-to-day operational matters, they have to plan and implement their operations in markets that are showing dramatic change. Indeed such change is having a major impact on these companies and the single biggest factor driving this process of change is competition.

In relation to job creation. I should point out to the House that the major role which State bodies play is in helping to establish and maintain the conditions which support sustainable employment for all who seek it. While the State bodies in the main do not have a direct role in job creation, they do have a very important indirect role in ensuring that the sectors for which they are responsible provide competitive, efficient and effective services for the Irish economy. In addition, I must emphasise that employment in the overall economy depends critically on the ability of the commercial State companies to cope with increasing competition, which will become even more severe in the medium to long-term; to operate flexibly in existing and new markets; and to adapt successfully to changing regulatory environments.

In relation to changing regulatory environments, the Deputy will be aware of the impact in recent years of legislation for the Single Market and liberalisation generally. My Department plays a dual role in ensuring that the State companies are equipped to handle the full impact of the competition that this will entail, while guaranteeing access for new market entrants to common infrastructure at reasonable and cost-related prices.