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

I propose to take Questions Nos. 2 and 4 together.

In May of this year, a process was initiated to sell the Bord Gáis Energy business. This process was led by Bord Gáis Éireann and overseen by a government steering group which included officials from my Department, the Departments of Finance and Public Expenditure and Reform, and the NewERA unit of the NTMA. I am advised that the process was conducted in a professional, open and transparent manner and attracted significant interest from a broad range of potential international buyers, reflecting the positive international sentiment towards Ireland.

However, based on clear advice, I have determined that the bids received last week were not a fair reflection of the strength and potential of the Bord Gáis Energy business. On 27 November last, I announced that I had confirmed to Bord Gáis Éireann that none of the final bids received for the Bord Gáis Energy business was of an acceptable value. The Minister for Public Expenditure and Reform and I have been clear from the outset of this process that Bord Gáis Energy would only be sold if a sale price was achieved which fully recognised the inherent value of the business. This decision underlines our commitment to proceed with asset disposals only when we are satisfied with the outcome.

My Department and NewERA will now work with Bord Gáis Éireann to ensure continued investment in the development of the Bord Gáis Energy business. We will also work with the company to complete the separation of Bord Gáis Networks and Bord Gáis Energy, as required by the EU gas market directive. This work is already well under way. Last Wednesday, the Oireachtas passed the Final Stage of the Gas Regulation Bill, which underpins the restructuring of Bord Gáis Éireann and the sale of the energy business.

The Government will keep all options open as regards the future of Bord Gáis Energy, which is a growing and successful business. I am confident that regardless of its ownership structure, Bord Gáis Energy will continue to enhance competition in the all-island energy market for the benefit of the economy and consumers. The continued roll-out of the Bord Gáis wind generation portfolio will also help to ensure that Ireland meets its legally binding renewable energy targets, as well as building further value in this business.

The Government remains committed to retaining Bord Gáis Éireann’s gas networks and interconnectors in State ownership as strategic infrastructure. We are also continuing our programme of divesting non-strategic assets, the proceeds of which will be used for re-investment in support of employment and economic recovery.

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