No Decision On State Asset Sales, Says Rabbitte

The Irish Government must draw up a list of state owned assets by a deadline set by the country’s troika of lenders.

Ireland's Energy Minister Pat Rabbitte has revealed that The European Union (EU), the International Monetary Fund (IMF) and the European Central Bank are urging the government to create a list of state assets worth €5bn.

The Irish coalition was seeking to draw up €2bn in sales of proposed state-owned assets by the end of the year but its bailout lenders were urging it to sell even more, Rabbitte said.

"The troika pressures on the government are more severe in the sense they want what they call an ambitious program of disposal of state assets," he told Irish broadcaster RTE Radio, without specifying how much more the troika requires.

It is understood that the government wants to use the revenue of the state assets to boost employment. It is hoped that at least some of the proceeds of the sell-offs can be used for job creation, though this will require the agreement of the EU/IMF authorities.

Mr Rabbitte has said that no decision has yet been made on the potential sale of non-strategic state assets but has confirmed that decisions will be made before December's Budget.

It has also been confirmed by the Minister that any sell-off of state assets would not include the transmission and distribution networks of the ESB and Bord Gais.

"You can't allow a situation where people can start trading in the networks because they can make profit, and profit, and profit again, and then starve the infrastructure of the necessary investment. That's what happened in the case of Eircom and that's what we can't allow happen in the energy companies," explained Mr Rabbitte.

Meanwhile, Transport Minister Leo Varadkar said that the Government still had to decide if it would sell its 25% stake in Aer Lingus. If the Government does sell its stake, it will only be sold to the right buyer at the right price, he added.

The government is likely to select a list of state companies which will be considered for sale at its meeting this week.

Ministers will decide which companies represent serious prospects for raising cash, and will then examine each case in detail before negotiations with the EU/IMF begin on the next review of Ireland’s bailout programme next month.

(LB/GK)