Coalition to unveil State assets likely to be sold

HARRY McGEE, Political Correspondent

THE GOVERNMENT will today disclose the State assets and companies it intends to dispose of to raise billions of euro to write down debts and invest in job-stimulus programmes.

The Cabinet last night approved a memorandum brought by Minister for Public Expenditure Brendan Howlin setting out the “means and architecture” for best disposing of State assets.

Mr Howlin is expected to make an announcement today setting out a list of possible companies which may be sold off. Government spokespeople were not in a position to say last night whether the Minister would also disclose the amount that could be realised, or the proportion that would be set aside for investment programmes.

A Government source said last night the list would not be definitive or exhaustive and did not preclude other assets that might be added for sale at a later date, if necessary.

The only public commitment that has been made to date has been the partial sell-off of the ESB. However, representatives of the EU-IMF troika disagreed with the sell-off arrangement announced by Minister for Energy Pat Rabbitte, prompting doubts about whether that scheme would go ahead. In the interim, another State energy company Bord Gáis has been mentioned as a more likely candidate for disposal. Government officials would not be drawn on this possibility last night.

The programme for government committed both Coalition parties to sell off up to €2 billion in State assets. The memorandum of understanding with the troika referred to a significant disposal without mentioning a sum. A sell-off of as much as €5 billion was mentioned in a paper prepared by IMF officials.

The other difference between the Government and the outside bodies revolved around the use to which the money would be put. The memorandum stated that it would be used to write down debt whereas Coalition Ministers repeatedly insisted some of the funds should be used for jobs-stimulus investment, in line with the NewEra energy and utilities policy. There was a breakthrough between both sides during discussions in January, where the troika agreed that if more than €2 billion was realised, a portion of the funds could be used for stimulus.

The Cabinet met twice yesterday, with the morning meeting being adjourned to allow senior Ministers, including Taoiseach Enda Kenny, to attend the PayPal jobs announcement.

When the meeting reconvened yesterday evening, it also gave approval for the publication of the whistleblowers legislation, as well as discussing the issue of additional compensation for turf-cutters who will no longer have access to protected bogs.

Later last night, the Economic Management Council – comprising the Taoiseach, Tánaiste, Minister for Public Expenditure and Minister for Finance – met senior executives of Bank of Ireland, AIB and Ulster Bank. The purpose of the meeting was to ascertain the level of lending by banks, especially to small and medium businesses. At the last such meeting in 2011, there was a row between Government and the banks over their refusal to pass on an ECB interest rate drop.

The publication of the whistleblower Bill this week will trigger early and substantial reform of the Official Secrets Act.

Mr Howlin will publish the Bill later today or tomorrow. The basic objective of the legislation will be to protect whistleblowers against reprisals from employers for having made a disclosure.

A background document prepared for the Minister argued for an acceleration of the “reform of official secrets legislation to ensure that it is focused on what is legitimately secret and should not come into the public domain rather than the very broad coverage currently in place”.

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