Government selling parts of Bord Gáis and ESB
22.02.2012
The Government has revealed today what State assets it will sell and how under the EU/IMF programme.
The Government said it has agreed with the troika the sale of state assets up to a value of €3bn provided there will be no “fire sales”. It said integral transmissions and distribution systems will be retained in State ownership and full value will be derived for the State.
It said that after detailed analysis it has decided not to proceed with the sale of a minority stake in ESB, but that it will sell some of that company's non-strategic power generation capacity as well as Bord Gais Eireann's energy business (excluding its gas transmission or distribution systems or the two gas interconnectors). It will also consider selling some Coillte assets and some of its remaining shareholding in Aer Lingus “when market conditions are favourable and at an acceptable price to Government”.
The Government also said today that, following negotations with the troika, it will be able to reinvest a third of money raised from the sale of assets back into the economy.
“When we came into Government, the position was that no money from the disposal of assets could be spent on anything except reducing our debts,” said Minister for Public Expenditure, Brendan Howlin. “I am pleased that following intense engagement the troika has agreed that one third of the proceeds can be used for re-investment in to our economy.
“This is a substantial change to the troika’s previous position and will help promote recovery in the economy.”
The Government said the planning work will now begin for selling these assets and that this will involve all the relevant Departments overseen by the Department of Public Expenditure and Reform and with the assistance of NewERA, with the objective of identifying by end-March any remaining policy, regulatory, legislative and/or financial issues that may need to be addressed prior to disposal. The intention is that any issues arising will be addressed by the end of 2012 in order start selling the properties in 2013.