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

I apologise for being late. I was at a committee with a European agenda. I do not know why the timetabling was so tight.

We are dealing with some amendments from the Seanad to conclude the passage of the Gas Regulation Bill. Having regard to developments this morning, I felt it would not be appropriate in my dealings with the Opposition if I did not make some brief opening remarks in advance of discussing the outstanding amendments to the Bill.

As Deputies may be aware, this morning I made an important announcement on the Bord Gáis Energy sale, which is also the subject of this Bill. I have confirmed to Bord Gáis Energy that none of the final bids received for the Bord Gáis Energy business is at an acceptable value at the present time. The sale process attracted significant interest from a broad range of potential international acquirers, reflecting positive international sentiment towards Ireland. However, current conditions in the power and commodity markets are not favourable and based on clear advice I have determined that the current bids are not a fair reflection of the strength and potential of the Bord Gáis Energy business. Therefore, while I had introduced this Bill with a view to underpinning the sale of Bord Gáis Energy within 2013, the sale will not now go ahead within this timeframe. The Government will instead consider its options for the Bord Gáis Energy business and the enactment of this Bill keeps all options open to the Government, including a future sale of the company which would require this enabling legislation.

In the course of the debates on the Bill, several Deputies questioned whether the State should proceed with the sale of the Bord Gáis Energy business and whether the sale would amount to a fire sale of assets. On several occasions I reiterated to this House that there would be no fire sale and that disposals would be undertaken only when market conditions are right. This decision underlines my commitment and reflects my resolve to ensure the State achieves value from the State asset disposal process.

My Department, along with NewERA, will now work with Bord Gáis Energy to ensure continued investment in and development of the Bord Gáis Energy business, while also completing the separation of Bord Gáis Networks and Bord Gáis Energy, as required by the EU gas market directive.

See this speech in context