Written answers
Tuesday, 5 November 2019
Department of Public Expenditure and Reform
State Bodies Data
Catherine Murphy (Kildare North, Social Democrats)
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170. To ask the Minister for Public Expenditure and Reform the amount collected by way of dividend from commercial semi-State companies in each of the past five years to date by amount and company in tabular form; the policy in respect of dividend payments to the Exchequer from commercial semi-State bodies; the way in which they are redistributed; and if he will make a statement on the matter. [44833/19]
Paschal Donohoe (Dublin Central, Fine Gael)
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Historically, there have not been comprehensive central guidelines for State companies regarding dividend policy although, traditionally, dividends of approximately 30% of profits after tax have been sought and expected from most commercial State companies.
NewERA, in conjunction with the relevant Government Departments, has developed a Shareholder Expectations Framework which is intended to provide clarity and guidance for each of the companies within its remit in relation to the Government's strategic priorities, policy objectives, and financial performance and reporting requirements. One of the key areas addressed as part of this shareholder expectations framework is dividend policy.
Dividends, when received, are lodged to the Central Fund from where they are used to fulfill the commitments outlined through the annual Budget and Estimates process. Dividends received for the last five years are set out in the following table.
€'millions
| 10 months to 31/10/2019 | 12 months to 31/12/2018 | 12 months to 31/12/2017 | 12 months to 31/12/2016 | 12 months to 31/12/2015 | ||
|---|---|---|---|---|---|---|
| Bord na Móna | Note 1 | 0.00 | 0.00 | 2.33 | 3.76 | 10.14 |
| Coillte | Note 2 | 0.00 | 15.00 | 8.00 | 7.20 | 4.00 |
| EirGrid plc | 4.00 | 4.00 | 4.00 | 3.50 | 3.00 | |
| Ervia | Note 3 | 54.40 | 139.09 | 148.44 | 134.66 | 151.03 |
| ESB | Note 4 | 4.77 | 33.06 | 109.97 | 82.17 | 258.72 |
| daa | 40.00 | 37.40 | 29.10 | 18.30 | 0.00 | |
| IAA | Note 5 | 19.52 | 19.46 | 9.25 | 7.43 | 6.54 |
| Dublin Port | Note 6 | 0.00 | 12.17 | 11.71 | 10.91 | 8.80 |
| Port of Cork | 0.25 | 0.71 | 0.69 | 0.67 | 0.65 | |
| Shannon Foynes | 0.35 | 0.30 | 0.25 | 0.20 | 0.10 | |
| Port of Waterford | 0.33 | 0.00 | 0.00 | 0.00 | 0.00 |
Note 1: The Exchequer receives 95% of Bord na Móna dividends paid and Bord na Mona ESOP receives 5% in line with their respective shareholding percentages.
Note 2: Coillte have typically paid dividends to the Exchequer in December of each year.
Note 3: Ervia's dividends are comprised of ordinary and special dividends. Special dividends relate to the proceeds of the disposal of Bord Gáis Energy ("BGÉ"). See the table below for an analysis of Ervia's dividends between ordinary and special:
| Ervia Dividends | 10 months to 31/10/2019 | 12 months to 31/12/2018 | 12 months to 31/12/2017 | 12 months to 31/12/2016 | 12 months to 31/12/2015 | |
|---|---|---|---|---|---|---|
| Ordinary | 54.4 | 49.1 | 48.4 | 34.7 | 51.0 | |
| Special (BGÉ) | - | 90.0 | 100.0 | 100.0 | 100.0 | |
| Total | 54.4 | 139.1 | 148.4 | 134.7 | 151.0 |
Note 4: The Exchequer receives c.95% of ESB dividends paid and ESB ESOP receives c.5% in line with their respective shareholding percentages. ESB's 2015 dividends paid was comprised of €58m ordinary dividends and €214m special dividends. Special dividends paid related to the disposal of non-strategic assets.
Note 5: In 2019 IAA paid a normal dividend of €7.5m and special dividend of €12m. Similarly, in 2018 IAA paid a normal dividend of €7.5m and a special dividend of €12m.
Note 6: The Board of Dublin Port Company declared a dividend of 10% of 2018 PAT equating to €4.1m during H2 2019.
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