Dáil Éireann díospóireacht -
Wednesday, 17 Oct 2001

Vol. 542 No. 3

Written Answers. - Commercial State Companies.

Bernard J. Durkan

Ceist:

29 Mr. Durkan asked the Minister for Public Enterprise the State or semi-State companies currently being considered for privatisation; the discussions she has had with management and staff in the bodies concerned; and if she will make a statement on the matter. [24322/01]

Minister for Public Enterprise (Mrs. O'Rourke)

As I have said on previous occasions, questions about the future ownership of commercial State companies fall to be determined on a case by case basis in the context of developments in their main business areas.

The following is the position in relation to the commercial State companies, under my aegis. A change in the ownership of Aer Lingus is not now an issue in the current circumstances.

In regard to the CIÉ group of companies, the consultation paper entitled, A New Institutional and Regulatory Framework for Public Transport, was published by the Government in September 2000. It sets out a number of proposals in relation to the restructuring of the CIÉ companies including the possible privatisation of the bus companies. These proposals are currently the subject of consultation with the Public Transport Partnership Forum which was established under the terms of the Programme for Prosperity and Fairness.

No Government decision has been taken in respect of the recommendation of the board of Aer Rianta that there be an IPO of a minority shareholding in that company. There are no plans to privatise the IAA, which was incorporated as a commercial State company in 1994 and is the safety regulator and the provider of air navigation services in Irish-controlled airspace.

There are currently no plans with regard to the flotation or privatisation of the ESB. I wrote to the chairman of the ESB and invited the board to let me have its views on the future direction of the ESB including such issues as alliances, strategic partnerships, structure and ownership. I also encouraged the board and the ESB group of unions to discuss this matter together.

The board concluded in January 2001, having taken full account of the submissions from ESB management and unions, that the essential conditions for a successful change of ownership did not prevail at that time. Therefore, the board decided that it would be inappropriate to proceed with a change of ownership recommendation at that stage. The board also decided to urgently pursue with the ESB group of unions, in a spirit of partnership, the development of a comprehensive strategy for the future development and growth of ESB.

I welcome the efforts taken to date by the board, the management and unions in relation to this important issue. I respect the conclusion arrived at by the board. I am confident that all parties will work together in a spirit of openness and partnership to develop this partnership strategy.

There are currently no plans with regard to a privatisation of Bord na Móna.

In response to a request by the Minister of State on 5 November 1999 for the board to consider all options for its future, the board presented a strategy that favoured an IPO to best meet the financial and commercial needs of the company as deregulation progresses. This matter is still under consideration but the enactment of legislation to establish BGE as a public limited company is a prerequisite, and this is unlikely to be achieved in the life of this Dáil. In view of the present position regarding the legislative programme, I have asked the board of BGE to consider alternative options for meeting the current financial and commercial needs of the company.

It is important to have clarity in the regulatory environment. In this regard, a Bill to transfer the gas regulatory functions of the Minister to the Commission for Electricity Regulation has been passed by the Seanad and is awaiting Second Stage in the Dáil. I am hopeful that the Bill will be enacted by the end of the year.

Last year I authorised An Post to examine options regarding a possible strategic alliance with one of the major European operators. The necessity to do this arises from competitive pressures both from the liberalisation of the market and the consolidation which is taking place in the European postal industry, driven by the four main players, the post offices of Germany, Holland, Britain and France.

While I am kept informed of developments, the investigation by An Post into alliance possibilities is an ongoing process. I understand that there are indications of interest but it is too early yet to judge the eventual outcome. I expect An Post to report to me on this matter later this year.

While privatisation is not currently envisaged or planned for An Post, the Postal (Miscellaneous Provisions) Bill currently before the Dáil does provide for private equity holding in the event of the company forming a strategic alliance with another European postal operator.