Govt In 'Fairyland', Say SF

A call has been made for the State’s energy companies to be "safe-guarded" and used to re-grow the economy – not sold off.

Sinn Fein (SF) has accused the Government of "short-sightedness" after announcements this week that more assets will be sold in addition to the minority stake in the ESB already announced.

It has been just over two weeks since the Coalition confirmed that it would sell a minority stake in the State’s Electricity Supply Board (ESB).

The semi-state energy company will not be broken up, it was revealed but it is still not yet clear the percentage of the company to be sold or how much money will be raised.

The Irish coalition is seeking to draw up €2bn in sales of proposed state-owned assets by the end of the year but its bailout lenders are now urging for more sales.

Ireland’s Energy Minister, Pat Rabbitte received heavy criticism in the Dail following his announcement that the Government would indeed sell a minority stake in the electricity company.

Sinn Féin Energy Spokesman Martin Ferris has described the decision as an "absolute disgrace" and said: "We’re selling off the State assets one by one. This is the start – a decision taken in principle by this Government to sell one of the most lucrative parts of our State assets."

Sinn Féin have spoken out again saying that using the money from such sales for stimulus is not an option.

Dublin TD and deputy leader of Sinn Féin Mary Lou McDonald said: "The EU and IMF have made absolutely clear in the memorandum of understanding that monies that come from any fire sale of state assets will be used to pay off debts, so the Government is kind of in fairyland when they say they'll use this money for stimulus.

"It's very clear that those monies will be used to pay off the debt."

Meanwhile Fianna Fáil energy spokesman Éamon Ó Cuív said: "the minute a minority share of a State company is sold off, the company’s interest shifts from the national to the shareholders’ interest. Pressure then mounts inexorably to sell more of the company until it is fully privatised."

Minister Rabbitte has insisted, "there is no question of the Government handing over control".

"I have found myself in a position I do not want to be in," claims Minister Rabbitte "but the bailout troika had said Ireland must dispose of some State assets."

(LB/CD)