Brendan Howlin (Wexford, Labour)

The McCarthy group subsequently reported in April 2011 and concluded the realisation of proceeds from the sale of State assets offered the potential to assist in tackling the fiscal crisis, both by reducing the debt burden on the State and also by supporting economic recovery through enhancing productive efficiency and competitiveness. It recommended a planned programme of non-strategic asset sales should be undertaken.

The original memorandum of understanding with the EU-ECB-IMF funding partners also addressed the issue of asset disposals. It required the Irish authorities to undertake an independent assessment of the electricity and gas sectors, building on the work of the review group, and to consult with the European Commission services with a view to setting appropriate targets for the privatisation of State-owned assets.

In negotiating a programme for Government, the two Government parties accepted a new approach to the management and use of State assets, in the interests of the economy, the people and job creation, was required as part of the mechanism to address the fiscal crisis. The programme for Government included a commitment to release value from the State's portfolio of assets with the intention of using these proceeds to fund investment in the productive capacity of the economy in the context of the NewERA entity which we propose to establish. A target of up to €2 billion from the sale of non-strategic assets was agreed, drawing from the recommendations of the review group but with the assets only to be sold when market conditions were right and when adequate regulatory structures had been established to protect consumers.

Since the Government took office last year, we have made significant progress in advancing the Government's plans with regard to making better use of our State assets.

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