Government plans to use €200m from sale of State companies to fund stimulus plans

The Government plans to use €200 million from the sale of State assets to fund road and house building and tourism projects that it says will create jobs and stimulate economic activity.

The sale of assets such as Bord Gáis Energy, a number of ESB power plants and the National Lottery licence, is expected to raise up to €1.4 billion for the Exchequer.

Under the terms of a deal with the EU-IMF troika, which sought the sale of the assets in the first place, the Government can use some of the cash raised for job creation.

Minister for Public Expenditure and Reform Brendan Howlin yesterday said the Coalition intends committing a total of €200 million to a number of different areas.

The plans include spending €50 million on social housing, which Mr Howlin said would pay for an extra 1,000 units. The Government also intends allocating €50 million for road improvements in rural areas.

As part of its support for the Republic's bid to host the Rugby World Cup, the Government is also pledging to give €30 million to pay for necessary improvements to Páirc Uí Chaoimh stadium in Cork.

The GAA is redeveloping the venue and the total bill is likely to run to €70 million. The association will provide the other €40 million.

€10 million for greenways
The €200 million package announced yesterday also includes a €10 million contribution towards greenways and €22 million for various projects that will commemorate the period leading up to the foundation of the State.

Mr Howlin pointed out that some of the measures would help boost the Republic’s construction industry, which he said has been showing signs of recovery.

Pat Rabbitte, the Minister for Communications, Energy and Natural Resources, whose department oversaw the Bord Gáis Energy sale and the disposal of the ESB plants, said that the Government's deal with the troika improved on the "very tight package we inherited from our predecessors".