Martin Ferris (Kerry North, Sinn Fein)

The reason I asked for a debate on this matter is because of the real threat that exists at present to State companies. We are still awaiting the report of the McCarthy group on State assets. However, judging from the tenor of an bord snip nua's report, it is highly likely that the McCarthy group will recommend the selling of State companies across a range of areas. I am very concerned about the influence of various Departments on the report.

The McCarthy group was established in July before the IMF and European Union intervened here, yet it and the intervention are linked. Every state in which the IMF has intervened has been forced to carry out a fire sale of state assets. In reply to one of my questions yesterday, the Minister, Deputy Brian Lenihan, stated the IMF was briefed on the work of the McCarthy group. It clearly has an interest in the matter. The Minister also informed me that a review of State companies – he referred specifically to electricity and gas – would be conducted as part of the IMF-EU programme. He further added that "the Government will consult with the Commission on the results of this assessment with a view to setting appropriate targets for the possible privatisation of state-owned assets". In another reply, the Minister stated: "it would be negligent not to examine all reasonable ways in the public interest to reduce the State's indebtedness, including through the sale of certain State assets." Privatisation is clearly part of the agenda along with an austerity programme involving cuts.

In my opinion and that of many who have examined the experience of other countries who have come under the effective control of the IMF, such a sell-off would be a disaster. An example of such a disaster is evident in what occurred after the sugar industry was privatised. Hundreds of jobs were destroyed to facilitate property speculation by the new owner, Greencore. If the same occurs in respect of An Post, Bord Gáis, Coillte or the ESB, we can multiply that devastation many times over.

We know from the experience of countries such as Russia that a sell-off of state assets does not lead to some wonderful free market. What happened in Russia was that those with access to power were able to use their political influence to take over the former state companies, including Russia's oil, gas and mineral companies. In Ireland there are people with such ties who have already positioned themselves for a sell-off. For example, the former Taoiseach, Deputy Bertie Ahern, is the chairman of a company that has expressed an interest in buying the forestry lands under Coillte's control. This amounts to 7% of the Irish landmass. Professor Colm McCarthy's an bord snip nua report recommended that the privatisation of Coillte be considered. If he recommends such a sale again and the Government of the time follows it, some people are well poised to move on it.

A reply to a question I asked about the an bord snip nua recommendations on Coillte was interesting, in that the Minister for Agriculture, Fisheries and Food stated that, as a shareholder, he agreed with Coillte being subject to the current review of State assets. On the basis of the previous McCarthy report, we can expect a recommendation on the sale of Coillte's assets. We can see where this is heading. A part of the State's elite destroyed the economy. The political elite brought in the International Monetary Fund. A combination of the two are now preparing to cash in on the mess by selling off and buying up State assets. It is a matter of real concern about which people need to be aware.

People also need to be aware that parties which agreed to administer the IMF-EU bailout will have no choice but to go along with that agenda, a central part of which is privatisation. People need to know the Government's intention and the roadmap it is setting out for the next Government. Are we pursuing a line of privatising State assets and selling them to speculators and others who intend to capitalise on the sweat and blood of those who created those State's assets? Will the situation resemble that of the sugar beet industry, whereby Greencore and many shareholders, such as Mr. Liam Carroll, were able to make a killing from the sweat and blood of generations of people, particularly in rural Ireland? This should be a concern for anyone with a moral conscience about the country's future.

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