Tony Mulcahy (Fine Gael) | Oireachtas source

In addition, we are obliged under Directive 2009/73/EC to dispose of parts of the energy business of Bord Gáis. This is covered under the third gas directive, which was passed into law on 3 September 2009 by the last Fianna Fáil Government.

It aims to progress the liberalisation of European markets for gas and electricity. Transposition of the EU's third package of gas and electricity directives in 2009 has been slow and often achieved only through legal action by the Commission against infringement. Does the Opposition want another set of fines to be imposed on this country, similar to those imposed following the European Court of Justice ruling in 2009whichfound Ireland in breach of the water framework directive? Does it have to take a massive bailout by the EU, IMF and ECB for those now in opposition to do what has always been EU law?

The gas directive was established by the European Network of Transmission System Operators for Gas, ENTSOG. One such operator is Bord Gáis, which currently has 427,000 gas customers and 348,000 electricity domestic and commercial customers nationally. As part of this liberalisation, competition was opened up in the Irish market. This resulted in the Big Switch campaign by Bord Gáis Éireann to supply gas and electricity to the Irish consumer. Bord Gáis Éireann is a large semi-State company set up by a previous Fine Gael-Labour Party coalition Government in 1976. It is very successful, with more than 1,000 employees. In 2012, it raised €500 million in a bond issue, which makes it fully funded until 2016. It has many assets in the country, including a wind farm portfolio and a 445 MW gas-fired power station in County Cork. Additionally, as mentioned, it has distribution and energy supply businesses in Northern Ireland. Furthermore, it was the successful bidder for the new Uisce Éireann-lrish Water company.

I do not wish to rehash what the Minister has already said in his introductory speech on this Bill. I support the Government in terms of what it aims to do with the proceeds of the sale of part of Bord Gáis Éireann. This follows tough renegotiation of the original bailout agreement, which we were told by Fianna Fáil when in government could not happen. It has happened. We can now invest 50% of the money raised from the sale of some assets in job creation and the remaining 50% can be used to secure funding for this job creation. Once these jobs are created and tax revenues are flowing again we can then start to pay down that debt.

Under Part 2 of the Bill, Bord Gáis is allowed to form a new network company. However, Bord Gáis will not be allowed to transfer ownership of this company, thus keeping this important piece of infrastructure in State hands. Sections 5 to 10 deal with the number of directors to be appointed to the board. These provisions will ensure only fit persons can be appointed and that their every action will be accountable. We need full disclosure of our directors and members of staff. These are State assets that need to be exploited for the maximum benefit of the taxpayer and not run as private empires for the few. The provisions of this Bill will ensure this. I believe that we should provide for lengthy quarantine periods during which time directors and staff of semi-State bodies are prohibited from working in the private sector for companies with whom they had dealings prior to leaving the State body.

Part 3 of the Bill deals with Bord Gáis Éireann's need to prepare a transfer plan for the energy assets, licences, staff and liabilities to an energy company. As per section 19, Bord Gáis will have to include a report on the network company in it's annual report. The Bill provides for checks and balances in regard to how the various provisions therein will be overseen by the Ministers for Communications, Energy and Natural Resources, Public Expenditure and Reform and Finance and, ultimately, the Oireachtas, to whom they are all accountable.

Nothing will be sold until such time as Ministers give their approval. This will ensure that we do not sell at the worst time. Economically things are improving. No one wants a fire sale as this would not be good for the taxpayer. This will not happen. In this regard, we need only look to the privatisation of the Royal Mail, in respect of which the share price of £3.30 at the time of placement was too low. Yesterday, the share price for Royal Mail was £4.75. It must be recognisedthat when the time and the price is right we will need to be able to move quickly.There are those who say we are selling the family silverware at the wrong time for the wrong amount. However, one must at times cash in some chips to gather money to invest in other areas of wealth creation for the State. We need to ensure that the staff that transfer to the new company and those who will be part of the elements sold on are consulted. I firmly believe that the Minister will ensure that this happens.

I welcome that under Part 4 of the Bill and the amendments to the Act of 1976, employees or their trustees will own up to 5% of the capital stock in the company. This will incentivise employees, in that the better the company performs the better their return. To those who oppose some of the aims of this Bill, I point out that they have very short memories in relation to the sale of State assets given they sold off Aer Lingus in 2006, Telecom Éireann in 1999 and Irish Sugar in 1991. There is a history of Governments creating State assets, developing them and selling them off in time. I support and welcome this Bill.

To Senator Daly I say, we are where his party put us.