Dáil Éireann Debate, Wednesday - 9 October 2013
8. Deputy Timmy Dooley asked the Minister for Public Expenditure and Reform if he will subject the sale of any State assets to a post-sale value for money review; and if he will make a statement on the matter. [42484/13]
Amharc ar fhreagraThe issue of a post-sale value for money review was raised on the Committee Stage debate on the Gas Regulation Bill, which is being sponsored by my colleague, the Minister for Communications Energy and Natural Resources. On foot of the debate, I understand that the Minister has proposed a Report Stage amendment to the Bill to provide for a report on the operation of the legislation to be laid before the Houses of the Oireachtas within a year, which will address the disposal of Bord Gáis Energy, including steps taken to ensure the State receives fair value from the transaction and other matters.
I thank the Minister for that welcome information. I am pleased that the Minister, Deputy Rabbitte, has agreed to introduce an amendment on Report Stage of the Gas Regulation Bill 2013 to provide for a report to be laid before the Oireachtas in 12 months time. That is an excellent practice and I hope the Minister, Deputy Howlin, will be able to do something similar with the national lottery. He might tell us how the funds will be protected and what will happen during this and subsequent years. Perhaps the Minister, Deputy Rabbitte, might do the same in respect of the ESB's power plants in order that people can look back one year later and learn lessons for the future.
The reform package published by the Government includes a measure that asks for all legislation to be reviewed after a period. I have my own views in that regard. All legislation should be reviewed but the exact period will depend on the type of legislation concerned. Some matters lend themselves to a review after one year, but others would not be fully embedded in that period. That is a matter for debate. I stated on Committee Stage of the National Lottery Bill 2012 that I would update Members on the ring-fencing of money for the national children's hospital. Thankfully, we have had a successful bid of €405 million. The first tranche of that money will be paid in December when the licence is signed and the new licence will become effective 12 months hence. The second moiety of payment, which will be in the order of €200 million, will be ring-fenced for the national children's hospital, and I expect it to be drawn down during the course of 2015.
That is very welcome. It was set out in the memorandum of understanding that 50% of the proceeds of the sale of State assets would be spent on reducing debt. Given that the troika has almost gone, does that still hold or will the Minister be able to use the balance from the sale of State assets in future years for domestic job creation? Everybody in Ireland would support the use of these funds for job creation and stemming the flow of emigration. The sale of assets in the financial arena, such as Bank of Ireland, can be used to repay the national debt.
In regard to the money we borrowed to invest in Bank of Ireland, when our investment is realised, it will be used to reduce the debt. I reached agreement with the troika that we could use 50% of the money accrued from the sale of State assets for direct job creation efforts and the balance as a back stop. I was conscious that Greece and other countries were using unspent Structural Funds as a back stop for public private partnerships, but we did not have any unspent Structural Funds. We have to see what moneys come on stream. I commend my officials on their role in completing the sale process for the national lottery licence. We will see what accrues to the State from the sale of Bord Gáis Éireann, which will come on stream by the end of the year. We should review not only the value for money but also how we spend the money.
