Tommy Broughan (Dublin North East, Labour)
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Question 417: To ask the Minister for Communications, Marine and Natural Resources his views on industrial relations at the ESB and his plans to ensure that the ESB's key electricity network and generation infrastructure will continue in public ownership after market opening in February 2005. [1436/05]

Noel Dempsey (Meath, Fianna Fail)
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I do not have primary responsibility within the Government for industrial relations issues. However, I am very much aware of the ongoing talks process established by the Labour Court in response to a request by the national implementation body under the Sustaining Progress agreement. These talks are aimed at resolving a number of industrial relations issues in the ESB.

It is public knowledge that the claim of the ESB group of unions includes an increase in the employees' current 5% shareholding in the company to 19.9%, an 18.5% salary pay increase and a resolution of the company's pension deficit. All of this is separate from and additional to increases under Sustaining Progress. Considerations of national competitiveness, the partnership approach to pay in the economy and even the long-term future of the ESB itself raise serious questions about the appropriateness of these claims. Government policy on employee shareholdings is clear and does not allow for a shareholding beyond 5% in the absence of a wider transaction affecting the company.

In regard to the future of the company, I will be engaging independent consultants to undertake a comprehensive and strategic review of the electricity sector, including institutional arrangements and market structures for the electricity sector in Ireland. I want this review to take place as soon as possible and it will include an examination of the ESB's vertically integrated utility structure and its dominance in the sector. It will also present a range of options for Government and the implications of each of these options for the economy and competitiveness of the electricity sector.

The Deputy is aware that I have previously confirmed my opposition to the privatisation of the transmission and distribution systems, which, in my view, are critical national assets that should remain in State ownership. I believe there is strong consensus about this. I have also previously stated my opposition to any privatisation that would result in the creation of a monopoly or near-monopoly in the power generation sector.

Notwithstanding this, I will be asking the consultants to consider all options in regard to the future shape of the company and on how to deal with the company's dominance in power generation. The issue of ESB's dominance is a critical one in terms of developing competition in the market and ensuring the electricity sector contributes fully to national competitiveness. Finding an effective solution to these issues is absolutely critical if we are to deliver good value for money to customers and ensure the security of energy supplies into the future.