Leo Varadkar (Dublin West, Fine Gael)
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Question 364: To ask the Minister for Communications, Energy and Natural Resources if he has approved the purchase of Northern Ireland Electricity by ESB and the process that will be gone through before the purchase is approved; his views on the price the ESB intends to pay €1.25 billion in view of the fact given that NIE's net assets are worth only €106.2 million according to its balance sheet of 31 March 2010; and if he will make a statement on the matter. [41130/10]

Eamon Ryan (Dublin South, Green Party)
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With the agreement of the Government, ESB received my consent, and the consent of the Minister for Finance, to the acquisition of Northern Ireland Electricity (NIE) in July last. These consents were given after consideration of legal and financial advice in relation to the proposal and its implications for the ESB Group.

As outlined in the joint press statement by ESB and Viridian on 7 July 2010, ESB will pay £1,034 million for the NIE Group subject to certain completion adjustments. NIE's Regulated Asset Base at 31 March 2010 is £1,007 million. ESB will also assume obligations of the NIE Group, including those under a £175 million Eurobond.

Leo Varadkar (Dublin West, Fine Gael)
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Question 365: To ask the Minister for Communications, Energy and Natural Resources his views regarding the impact that the ESB pension fund deficit and the purchase of Northern Ireland Electricity will have on the debt to equity ratio of ESB and its solvency as a company; and if he will make a statement on the matter. [41131/10]

Eamon Ryan (Dublin South, Green Party)
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With the agreement of the Government, ESB received my consent, and the consent of the Minister for Finance, to the acquisition by the company of Northern Ireland Electricity (NIE) after consideration of legal and financial advice in relation to the proposal and its implications for ESB Group including financial gearings, borrowing levels and investment programmes. ESB are committed to working with my Department and the Department of Finance to ensure that shareholder and Board requirements in relation to gearings and other metrics are met in the context of the acquisition.

The managing of the ESB pension fund deficit is an ongoing priority for the Board and Management of ESB and I welcome the positive agreement reached by management and staff on arrangements to address the deficit.