John Gilroy (Labour)

It is important that we be realistic and understand that, while the economy is in a precarious situation within the terms of the agreement, we could not survive outside those terms. Some commentators have professed surprise at the decision to review the sale of State assets, but they should not be surprised, as this was well flagged in the programme for Government.

Many genuine questions arise. For example, one question that is immediately obvious is whether it is in the best interests of the State to own two electricity generation and supply businesses that are competing with one another. This question needs to be reflected upon and answered.

There has been much discussion in the House and elsewhere about fire sales, the national interest and the family silver. If we remove the emotive language surrounding the debate, we will see the necessity of raising funds. Classical Keynesian economics states that, in times of recession, states should stimulate their economies by borrowing money and investing it in infrastructure. This is all fine and well, but Keynesianism is not applicable in this instance. We cannot raise funds. Who would lend to us? We must be imaginative and look at ways of pulling the general wisdom of the State together, raising money and investing wisely.

I congratulate the Minister on successfully renegotiating the position on the sale of State assets. We are now allowed to reinvest €1 billion of the proceeds of the proposed sales in jobs, which are necessary if we are to achieve recovery. This is a significant concession.

Another important milestone on the journey is the significant announcement that we are to establish a new public utility, Irish Water, which will provide public service employment of up to 3,000 jobs through the investment of almost €3 billion. This development must be welcomed. A strategic partnership between the new water utility and Bord na Móna will provide an investment of up to €500 million for the construction of a new reservoir in the midlands. My colleague, Senator Whelan, has been vocal on this issue. Without his support, this necessary step forward would not have been taken. It has been planned for nine years and will ensure a high-quality water supply, which is vital for the population and industry. Key matrices of indication for attracting and retaining foreign direct investment, FDI, include our corporation tax rate, our skilled workforce and a quality, secure water supply. We compete for FDI against countries such as Israel and India, in which respect the supply and quality of water makes a difference.

I urge the Minister to use his influence to ensure that no time is lost in advancing this vital project to the planning stage. I hope that we will see results shortly. As the Minister stated, the creation of a new public utility company demonstrates the Government's commitment to the provision of quality public services. A review of State assets is necessary and in the country's best interests.

Most of the comments I wished to make have been made, but I will ask the Minister two questions. Given the creation of a new water utility, must any part of the proposal to sell elements of State companies be reviewed? In terms of the proposed sale of the national lottery licence, could we be given a commitment to the effect that there would be no diminution of funding for good causes?