Brendan Howlin (Wexford, Labour) | Oireachtas source

As I informed the House on a number of occasions, in disposing of State assets it is a primary concern of the Government that value is secured for the Exchequer and fire sales are avoided. As we demonstrated at an earlier stage of the Bord Gáis Energy transaction, Ministers are fully prepared to stop a transaction process if we consider that bids received are not delivering acceptable value.

 That said, I am happy that value is being achieved in the transactions that have been completed or brought close to completion. Subsequent to our decision that value was not apparent in the Bord Gáis Energy transaction, revised bids were received which offered materially increased value for the company.  A consortium comprising Centrica plc, Brookfield Renewable Power Inc and iCON Infrastructure has been selected as preferred bidder for Bord Gáis Energy on the basis of its revised bid, which has an enterprise value of up to €1.12 billion. Furthermore, ESB's sale of its 50% shareholding in Marchwood Power in the United Kingdom in November achieved a price in excess of expectations, which should realise €140 million in dividends for the Exchequer this year.

As to the use to which these funds will be put, the Deputy will be aware of the Government's consistent position that the funds released from asset disposals should be used, in one form or another, to support job-creating initiatives in the economy. At budget time, I factored a total of €110 million into the Estimates for 2014 in respect of projects supported from the sale of State assets. Of this sum, €45 million will fund part of the advance works associated with public private partnership projects. Specifically, €25 million will be spent on the Grangegorman project and €20 million on road public private partnerships.  The remaining €65 million will be spent on the continued roll-out of the additional Exchequer investment projects announced in 2013 in energy and schools.  Additional elements of this stimulus plan will be rolled out as the various asset sale transactions are completed and the proceeds are realised.

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