Pat Rabbitte (Dublin South West, Labour)

The Government has decided that Bord Gáis Éireann's energy business and some of the ESB's non-strategic power generation capacity will be part of the State assets disposal programme. The Government is irrevocably committed to retaining the Bord Gáis transmission and distribution networks as well as the gas interconnectors in State ownership as national strategic infrastructure and fundamental to Ireland's security of energy supply and the economy.

The Government has also reiterated its commitment to retaining the electricity networks in State ownership and to retaining the ESB as a vertically integrated utility in State ownership as a strong strategic player in the all-island energy market and in due course in the integrated European market.

Both the ESB and Bord Gáis recorded a net profit in their most recently published financial statements. I assume that in referring to the deficits of the ESB and Bord Gáis the Deputy has in mind the deficits in the pension funds of those companies. I note the boards of management and employees of both the ESB and Bord Gáis have already agreed and are implementing measures to address the deficits in their respective pension funds.

In the context of the asset disposal programme, my Department, in co-operation with the Department of Public Expenditure and Reform and with the assistance of NewERA, is currently undertaking the necessary analysis to identify the policy, regulatory, legislative and financial issues that may need to be addressed prior to any disposal. Consideration of any identified potential pension issues as a result of this analysis will form part of the further detailed due diligence work required prior to any divestments.

I would emphasise that a guiding principle of the assets programme is ensuring that the best possible value is derived for the State, not least given that part of the proceeds can be used for re-investment to support employment and economic recovery. This underlines the imperative to ensure that the preparatory work is comprehensive and to the highest standard prior to any proposed divestment of assets from either the ESB or BGE.

See this speech in context