Minister defends plan to sell minority stake in ESB

MINISTER FOR Energy Pat Rabbitte came under pressure in the Dáil after he confirmed the Government is to sell a minority stake in the ESB.

The Minister announced to the House that the Cabinet made the decision yesterday morning to sell a share of the State power company as part of its obligations under the EU-International Monetary Fund memorandum of understanding.

In the wake of speculation in recent weeks about the potential sale of a share of the State power company, Mr Rabbitte confirmed the sale but said no decision had been taken about the size of that stake or its potential value.

Sinn Féin energy spokesman Martin Ferris, describing the decision as an “absolute disgrace”, said “we’re selling off the State assets one by one. This is the start – a decision taken in principle by this Government this morning to sell one of the most lucrative parts of our State assets.” He questioned how the Government had “taken a decision to dispose of a minority percentage and you don’t know what that percentage is” or its value to the exchequer.

“Is the financial situation of the country going to be improved by privateers coming in and taking over part of our national assets? That is the reality. National assets have been given away by the previous government and [this has] been acquiesced with by the present Government.”

Fianna Fáil energy spokesman Éamon Ó Cuív warned “the minute a minority share of a State company is sold off, the company’s interest shifts from the national to the shareholders’ interest. Pressure then mounts inexorably to sell more of the company until it is fully privatised.”

The former minister said that “in hindsight” he believed “some of the privatisations of State companies in the past were wrong”.

Richard Boyd Barrett (ULA, Dún Laoghaire) said any rational approach to dealing with the economic crisis should mean that “a successful and profitable company such as the ESB should be kept in public ownership and investment be made in it to develop sustainable energy resources”.

Mr Rabbitte insisted “there is no question of the Government handing over control”.

He said because the bailout troika had said Ireland must dispose of some State assets “I find myself in a position I don’t want to be in but I acknowledge that the survival of the viability of this economy is at risk and that we have to make moves to ensure economic recovery and get people back to work.”

A review group chaired jointly by the Departments of Communications, Energy and Natural Resources and of Public Expenditure and Reform will make a recommendation by the end of November about the proposed share for sale and its potential value. The review group will include officials from the Department of Finance.

During questions on energy, Mr Rabbitte said the sale would include a “defined process involving a full evaluation of the best approach to be taken, including the size of the minority stake to be sold”.

Mr Ferris said the decision would result in job losses at the ESB and contribute to “more unemployment”. The Minister said the Government recognised the strategic significance of the ESB “and the importance of the ESB in the context of energy security and energy supply”.