Ibec warns against early asset sale

Employers' group Ibec has warned against any any early sale of State assets at a level significantly below their long-term economic…

Employers' group Ibec has warned against any any early sale of State assets at a level significantly below their long-term economic value.

Minister for Public Expenditure Brendan Howlin this morning announced the list of the assets that the Government has identified for disposal, in line with its agreement with the EU-IMF troika.

The sale of Bord Gáis's energy business will form the main part of the €3 billion disposal of State assets and companies over the next two years.

Ibec said the Government should continue talks with the troika in a bid to maximise the proportion of the proceeds that could be reinvested in measures to support job creation.

Ibec director general Danny McCoy said: "As a result of tough decisions in recent years, international investors are again looking favourably at Ireland's long-term growth prospects. There will be no shortage of interest in investment opportunities in Irish assets. The Government must ensure that valuable assets are not sold too cheaply to raise cash quickly.

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"The sale of these assets at the right price presents an opportunity to support job creation. Every effort should be made to maximise the percentage of the proceeds that can be invested back into the economy. In order to invest for future growth, we must continue to improve the quality of our physical infrastructure. Investment in skills and education is also needed to enable the unemployed to avail of new job opportunities."