Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 2: To ask the Minister for Communications, Energy and Natural Resources his views on proposals to sell parts of the ESB; if he has made any decisions on this matter; and if he will make a statement on the matter. [23961/11]

Pat Rabbitte (Dublin South West, Labour)
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The EU-IMF programme of December 2010 involves a commitment that the Government will outline methods to raise funds through asset disposals. The 2011 budget included a similar commitment.

The programme for Government includes an intention to finance investment in the State from the proceeds of the sale of certain State assets. The Government has also considered the report of the McCarthy review group on the sale of State assets and the recommendations of that group.

I accept that the fiscal path, to which the Government is committed under the EU-IMF agreement, demands that the option of realising value from State assets be fully explored. I also accept that there is significant value in energy commercial State companies, which could be realised at an appropriate time after necessary further analysis of all the complex factors relating to the disposal of commercial assets in the energy sector.

The sale of a minority stake in the ESB as an integrated utility has, this morning, been agreed by Government. This decision is an early demonstration of the commitment by the Government to the programme for Government's objectives and to its obligations under the EU-IMF memorandum of understanding.

This sale will be advanced by means of a defined process involving a full evaluation of the best approach to be taken, including consideration of the size of the minority stake to be sold. That process will be progressed by a group co-chaired by the Department of Communications, Energy and Natural Resources and the Department of Public Expenditure and Reform, also including officials from the Department of Finance and availing of expertise from the National Treasury Management Agency and NewERA.

Full consideration will be taken of the energy policy and regulatory framework in this evaluation, and appropriate consultation will be engaged in. The group will report back to Government with a recommendation by the end of November.

Additional information not given on the floor of the House.

The decision by Government today recognises the strategic importance of the energy sector to the economic and social functioning of the State, and that the State must continue to have a strong and direct presence in electricity, particularly in the regulated transmission and distribution networks. This presence must be maintained in a way that protects overall economic competitiveness and does not deter private investment. The process to analyse options for the minority stake sale in ESB will fully reflect these principles.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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While I thank the Minister for his reply, I wish to reiterate that my party is totally opposed to the sale or disposal of any State share in the ESB, be it a minority one or otherwise. The acquiescence of the programme for Government to the demands being made by the IMF and others is unacceptable and absolutely wrong. For generations, the ESB and other semi-State companies have served this State well, both socially and infrastructurally.

Michael Kitt (Galway East, Fianna Fail)
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Could we have a question for the Minister, please?

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I will get there. What has been agreed today is a retrograde step and will be a disaster in the long term. What percentage minority share has the Government agreed to sell off? What is the projected value of that share to the economy or, should I say, to the IMF?

Pat Rabbitte (Dublin South West, Labour)
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I hear the Deputy's reiteration of his opposition to the disposal of any State assets. I also hear his conviction that there is no necessity for the Government to respond to the demands of the IMF-EU memorandum of understanding.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I cannot understand why the Minister, after taking a decision in principle to dispose of a minority stake, does not know the percentage figure to which that minority will equate.

Michael McNamara (Clare, Labour)
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It is less than 50%.

Michael Kitt (Galway East, Fianna Fail)
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Has Deputy Ferris a question?

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The Minister does not know the value of the stake to the Exchequer. He has taken a decision and he speaks about the financial situation in this country. Will the financial situation be improved by privateers taking over part of our national assets?

Finian McGrath (Dublin North Central, Independent)
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Hear, hear.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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That is the reality. The give-away of national assets by the previous Government was acquiesced to by the present Government.

Dessie Ellis (Dublin North West, Sinn Fein)
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Eircom was an example.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Eircom is a classic example of what has happened.

Michael Kitt (Galway East, Fianna Fail)
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I call the Minister.

Dessie Ellis (Dublin North West, Sinn Fein)
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It is an example of what the parties opposite have done and are prepared to do.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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What about the workers in ESB when those private profiteers come into the equation?

Michael Kitt (Galway East, Fianna Fail)
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Order, please.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Where do they stand?

Michael Kitt (Galway East, Fianna Fail)
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I call the Minister now.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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People will be cast out of their jobs and there will be more unemployment.

Michael Kitt (Galway East, Fianna Fail)
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Order, please. Deputy Ferris, I am calling the Minister.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I am not yet finished.

Michael Kitt (Galway East, Fianna Fail)
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I am finished.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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What is happening here is a disgrace.

Michael Kitt (Galway East, Fianna Fail)
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The Deputy must be fair to other Deputies.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The Government will sell off the State's assets one by one, starting with the decision taken in principle this morning on one of the most lucrative of our State assets. It is an asset that has supplied an outstanding infrastructure-----

Michael Kitt (Galway East, Fianna Fail)
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The Deputy should resume his seat. That is enough.

Dessie Ellis (Dublin North West, Sinn Fein)
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The Government has no right to sell off State assets.

Michael Kitt (Galway East, Fianna Fail)
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The Minister to make a final reply, briefly.

Pat Rabbitte (Dublin South West, Labour)
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I am pleased, as should all my colleagues in this House, with the growing recognition in Europe of the responsible manner in which this Government is dealing with the crisis we inherited.

Barry Cowen (Laois-Offaly, Fianna Fail)
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The Minister is contradicting himself.

Dessie Ellis (Dublin North West, Sinn Fein)
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That is not what the economists are saying.

Pat Rabbitte (Dublin South West, Labour)
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That is becoming clearer with every day that passes. I cannot understand how Deputy Ferris can assert that the Government is handing over control of State companies to outsiders. A minority stake is not control and there is no question of this Government handing over control. The ESB has strategic significance for the Irish economy and we recognise its importance in the context of energy security and supply.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The Government has already handed over control to its European masters.