Michael Moynihan (Cork North West, Fianna Fail)
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6. To ask the Minister for Communications, Energy and Natural Resources to set out the final revenues raised by the sale of Bord Gáis Energy; the way the resources generated by the sale will be used by Government; the spend on consultants and other expertise during and on completion of the sale; and if he will make a statement on the matter. [31426/14]

Michael Moynihan (Cork North West, Fianna Fail)
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Will the Minister for Communications, Energy and Natural Resources set out the final revenues raised by the sale of Bord Gáis Energy, the way the resources generated by the sale will be used by Government, the spend on consultants and other expertise during and on completion of the sale, and make a statement on the matter?

Alex White (Dublin South, Labour)
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On 30 June last, the sale of Bord Gáis Energy was completed. In line with the share purchase agreement entered into by Ervia, formally Bord Gáis Éireann, the total enterprise value, inclusive of debt, for the sale is €1.1 billion, including a small element of contingent consideration.

On 7 July, a special dividend of €150 million was received from Ervia representing the first instalment of proceeds from the sale of Bord Gáis Energy. Further special dividends will accrue from that sale. Under EUROSTAT rules, there are limits to the amount of such dividends that can benefit the general Government balance in any one year. Potential future dividends to be achieved in the coming years will be subject to two criteria. The restructuring of the company will involve the establishment of the proposed new gas networks company in accordance with the Gas Regulation Act 2013, which is expected to be completed later this year. There will have to be full consideration on the appropriate gearing level in line with the company's growth plans as well as regulatory and policy objectives. The net proceeds of the sale, when combined with the planned re-gearing and the contingent consideration, are expected to deliver total dividends in the order of €1 billion for the Exchequer.

Deputy Moynihan asked about the revenue raised from the sale of Bord Gáis Energy. The Government's consistent position is that the funds released from asset disposals, to include the proceeds from the sale of Bord Gáis Energy, should be used, to the greatest extent possible, to support job creating initiatives in the economy.

I can confirm that the total fees to be paid to the Government's financial and legal advisers amount to €1.2 million, excluding VAT. The Ervia annual report has recently been published and Ervia has provided additional details on professional fees paid relating to the transaction amounting to €18 million. I am advised that the fees and transaction costs are within the normal range for this type of large and complex transaction.

Michael Moynihan (Cork North West, Fianna Fail)
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We opposed the Bill as it was going through the House. The Minister has outlined what has been accrued from the sale. It is vital that the moneys from the sale are used to best possible effect for job creation. The Department should examine the shortfalls in the areas under its remit and what is needed within the Department. The previous question from Deputy Healy related to broadband. That is one of the major barriers to job creation in rural communities. It is vital that the moneys used have a tangible benefit and that they are not simply used to write down debt and so on. They should be used for job creation and to benefit the economy and the State for generations to come. Previous Governments set up Bord Gáis, the ESB and other semi-state bodies. It is vital that we consider that and ensure there is a tangible benefit to the State for generations to come.

Alex White (Dublin South, Labour)
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It is worth repeating that the Government's consistent position has been that the funds released from asset disposals, including the proceeds from the sale under discussion, that is, the sale of Bord Gáis Energy, should be used to support job creating initiatives in the economy.

I agree with the general tenor of the Deputy's remarks to the extent that, where sale agreements like this are concluded and a certain value accrues to the State, there should be a dividend in the broad sense to the economy by the opportunity to invest in job creation.