Fiach MacConghail (Independent) | Oireachtas source

I welcome the Minister to the Seanad. On a positive note, I welcome the amendment provided for in Part 2 of this Bill in regard to the requirement on the Minister to report to a committee on progress of the legislation within 12 months of it coming into force. The Minister, Deputy Rabbitte, may be the first to have inserted such a provision into legislation. It is a very positive move. It is case of walking the walk with regard to political reform. I am encouraged by the inclusion of that provision in the Bill and compliment the Minister on doing so.

Although the debate on the abolition of the Seanad is over, it is important to note the number of additional amendments inserted into this Bill following its passage through the Dáil. The Minister has indicated that he also proposes to introduce a number of other technical amendments. As such, the Seanad provides, at worst, a nice speed bump and time for reflection for legislators, in particular Government, prior to enactment of legislation.

It is always a momentous occasion, one that unnerves me, when we discuss the sale of State assets. The ghost of the Telecom Éireann debacle is clearly on my mind. What unnerves me even more is the proposed sale of Bord Gáis Energy, which is already profitable. My colleague, Senator Marie-Louise O'Donnell, has been highly critical of the sale of the national lottery licence. Also under consideration some time ago was the sale of the profitable part of Coillte. I was proud to be publicly associated with the campaign for the retention of Coillte in State ownership. I congratulate the Minister on ensuring this is the case.

I am genuinely surprised that there has not been any major kerfuffle about this Bill in the public arena. Bord Gáis Éireann is a major energy provider, supplying gas and electricity to homes and businesses throughout the island of Ireland. As stated by the Minister, it was established in 1976 and is majority owned by the Government. It is a dual fuel all-island business that serves more than 800,000 gas and electricity customers. The Bill addresses legislative amendments to allow and facilitate the sale of Bord Gáis Energy, which is the retail arm of Bord Gáis and sells gas and electricity to all market segments and performs related activities. It is on this basis that I express anxiety about this Bill, which anxiety will, perhaps, be alleviated during the Second and Committee Stage debates.

The sale of Bord Gáis Energy forms part of the Government's State asset disposal programme and is being pursued as a commitment under the EU-IMF programme. Surely, given that Bord Gáis Energy is profitable, we could renegotiate this differently. Reports anticipate that the sale could generate in the region of €1 billion to €1.5 billion, although more recent estimates are towards the lower end of that scale. Does the Minister know the real figure? I am not against the sale of State assets generally or the sale of Bord Gáis Energy, and my anxiety may relate to my not having the expertise of other Members of this House. Surely, we can make a better financial fist of it by retaining Bord Gáis Éireann in State ownership.

I am concerned not only about the 450 employees of the company but the impact of privatisation on the consumer. In 2012, operating profits before depreciation and amortisation had increased year-on-year by 11%. The net debt of the company has also begun to decrease. Is it a coincidence that the healthy financial performance would trigger a better sale of the company? Why can it not be retained in State ownership and allowed to continue to generate profits for the State? Bord Gáis is by far the biggest player in the domestic gas market, with 66% market share. I am not sure about the long-term impact or benefit of the sale of Bord Gáis Energy on our society or economy. I am aware of the imposed agreement to sell it but, as in other cases, is there not a different argument to be made in terms of its likely benefits and returns for the economy over a longer period of time?

As far as I can discern, no consideration was given to the implications of the Bill for consumer protection, nor has a published regulatory impact analysis been provided. There is, therefore, sufficient evidence to show that Bord Gáis Energy could stay in public ownership and use its profitability to protect jobs, increase profit and offer protection and choice to commercial and residential consumers.