Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I oppose the amendment because it seeks to fundamentally alter what we are trying to achieve with the Bill, namely, the sale of Bord Gáis Energy. The memorandum of understanding agreed in November 2010 between the then Government and the EU, IMF and ECB committed to setting appropriate targets for the possible privatisation of State-owned assets. Following lengthy and tough negotiations with the troika, the current Government has been able to agree a position whereby the quantum of disposals of State assets is smaller than the troika initially demanded. The proceeds will be used to assist in economic recovery and key strategic assets, such as the gas transmission and distribution systems, will be retained in State ownership. In order to deliver on our troika commitments and, more important, to fund our programme for jobs and economic recovery, we must proceed with the sale of Bord Gáis Energy. I cannot accept an amendment that seeks to delete section 29, which provides for the company to sell its energy business subject to ministerial consent.

As critical national infrastructure, the Government has committed to retaining the gas network in State ownership. In doing so, it is incumbent on us to ensure this important business remains well funded, with an investment grade credit rating, so that it can continue to invest and provide dividends to the State as shareholder. The Government will, therefore, ensure an appropriate gearing level in the network business following the sale. This is not a matter amenable to provision in primary legislation. While the attempt to do so may be well intentioned, it could preclude the ability to borrow to fund necessary infrastructure investment. That would not assist the company or deliver security and value to energy consumers and citizens.

However, while I am not able to accept the amendment, I assure Deputy Moynihan that the Minister for Public Expenditure and Reform and I will keep the matter under review and we will take the advice of our officials and the NewERA shareholder executive.

See this speech in context