Michael McGrath (Cork South Central, Fianna Fail)
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357. To ask the Minister for Public Expenditure and Reform if he has issued guidelines or instructions to commercial semi-State bodies in respect of the dividends they pay to the State; and if he will make a statement on the matter. [33593/14]

Brendan Howlin (Wexford, Labour)
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My Department is working with relevant Departments and NewEra (in respect of the companies for which NewEra has responsibility) to review shareholder management and oversight arrangements applying in the commercial State sector. Shareholder expectation letters have been, or will be, sent by parent Department Ministers to State companies. These letters set out the views and expectations of Ministers, as shareholders, of the companies' financial performance which includes the matter of an appropriate dividend policy. The Shareholder expectation letters also address the importance of striking the right balance between distribution of dividends and reinvestment in the business.

Up to now there has been no explicit guidelines to State companies regarding dividends. In recent years, dividends of approximately 30% of profits after tax have been sought from most commercial State companies. An additional €100m was also sought from the sector on foot of Budget 2013.