Brendan Howlin (Wexford, Labour) | Oireachtas source

I propose to take Questions Nos. 3 and 4 together.

The House will be aware from my announcement in February of last year of the overall shape and scale of the State asset disposal programme that is being pursued. In brief, the disposal programme that the Government has agreed consists of the sale of Bord Gáis Éireann's energy business, but not including BGE's gas transmission or distribution systems or the two gas interconnectors, which will remain in State ownership; the sale of some of ESB's non-strategic power generation capacity, that is, its two power stations not located in Ireland; disposal of the State's remaining shareholding in Aer Lingus, when market conditions are favourable in circumstances that accord with Government transport policy and at an acceptable price to the Government; and, after further consideration, and having ruled out the sale of Coillte's land holdings, the Government has also determined that a concession for the harvesting rights to Coillte forests would be proposed for sale.

I am pleased to report that significant progress has been made to date. BGE formally launched the sale process for its energy business on 3 May and I expect that the sale will be concluded by the end of this year. The ESB is also about to commence the sale of some of its non-strategic power generation assets, as announced last October. I expect that the sale of two of ESB's overseas assets, at Marchwood in the UK andAmorbieta in Spain, will be completed before the end of this year. In regard to Aer Lingus, the European Commission's recently completed investigation of Ryanair's bid for the company has been a complicating factor in the disposal of the State's stake. The UK's Competition Commission has now also reopened its investigation into Ryanair's holding in its rival. Until this and possible appeals processes are exhausted, it is unlikely that optimal conditions will exist for a sale of the Government's remaining shareholding.

In regard to Coillte, on foot of the Government's decision last year that a concession for the harvesting rights to the company's forests be considered for sale, an interdepartmental steering group was established, comprising representatives from my Department, the Department of Agriculture, Food and the Marine and NewERA, to progress the proposed transaction. A number of detailed financial, technical and other specialist reports were prepared for Coillte in late 2012 by external specialist consultancy bodies, in full consultation with the board of Coillte and its executive management, and these have also been considered by the steering group. The steering group has now reported to the Minister for Agriculture, Food and the Marine and myself, and we intend to bring proposals on this matter to the Government shortly.

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