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

I am grateful to Deputy Cowen for allowing me to answer this question. The credibility of the Government is very high in his constituency. I have just returned from there having announced measures to bring additional employment to various parts of the midlands, including in the Deputy's constituency. When he talks about the commitments given to Lanesborough and Shannonbridge in 2005 and that it is now 2013, he forgets that 2008 intervened. The year 2008 will go down as a milestone in the country's economic history and to quote Yeats, "All changed, changed utterly".

Arising from the commitment in the bailout agreement between the then Government and the troika in 2010 and following months of negotiation between the troika and the new Government, in February 2012 the Government announced its intention to consider a range of disposal options across the State sector to achieve a goal of realising proceeds of up to €3 billion. The Government indicated in July 2012 that a sale of the energy business of Bord Gáis Éireann and some of the ESB's non-strategic generation capacity would be part of the asset disposal programme.

The Government subsequently formally requested the ESB in October 2012 to develop a programme for the sale of its non-strategic generation capacity, with the objective of delivering special dividends to the Government, targeted at up to €400 million by the end of 2014.

Leaving the ESB power stations issue aside for the moment, it is important that the parameters for this issue be set out. If the original intention to raise €5 billion from the disposal of State assets had stood, it would inevitably have given rise to pressure to privatise the ESB. I am glad for a variety of reasons in the national interest that the ESB will be retained in State ownership as a vertically-integrated utility.

The ESB as a State-owned energy company has made a major contribution to Irish economic and social development. Notwithstanding growing competition in the generation and supply business, which I welcome, the ESB has been a commercial success over the years and particularly in recent years. I am referring to the assets in Britain and Spain. The sale of these assets was not expected to achieve the full amount of the required special dividend of up to €400 million and will not do so. Accordingly the ESB has now announced its intention to sell its two peat stations, West Offaly Power and Lough Ree Power. In selling these two stations, the ESB will be proposing to prospective buyers an arrangement under which it continues to operate and maintain the peat stations with existing staff. If there is any change to this, the ESB will consult with staff and unions prior to sale.

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