Dáil Éireann Debate, Wednesday - 13 June 2012
45 Deputy Clare Daly asked the Minister for Public Expenditure and Reform if he or any other Government Department has undertaken an impact assessment study of the likely job losses that will arise from the sale of State assets; and the way such job losses compare to the number of jobs that he expects to be created by the proceeds of the sale of these assets. [26315/12]
Amharc ar fhreagraThe House will be aware from my previous statements that a number of inter-departmental steering groups have been established to examine each of the assets referred to in the programme of State asset disposals that I announced in February. These groups are charged, inter alia, with identifying any implications for employment that will arise from the sales in question. Notwithstanding this, I do not necessarily accept the suggestion in the Deputy’s question that job losses are a likely outcome of this process. Apart from the receipts from the sale of assets that the Government will retain for reinvestment, the sale of certain business units of State companies may actually offer the prospect of access to significant new capital to grow these businesses, which might not have otherwise have been available, given the current position in capital markets. The Bord Gáis Energy sale and the proposed divestment of some of ESB’s non-strategic power generation assets also presents an opportunity to achieve wider economic benefits by introducing new players into the Irish market thereby leading to increased competition, which should, hopefully, increase efficiency, drive down costs and lead to reduced prices to consumers and businesses.
With regard to the investment of receipts from any sales, I have, after long-term negotiations, reached agreement with Troika representatives that all of the proceeds will be used, in one shape or another, to support job creating initiatives in the economy. Half of the proceeds will be available to fund employment enhancing projects of a commercial nature. The other half, while destined eventually to pay-down debt, will, in the first instance, be constituted as a fund to guarantee additional lending into Ireland, for example by the EIB, in support of further investment in job-creating initiatives.
