Kenny denies U-turns on selling of State assets

TAOISEACH Enda Kenny denied the Government was performing “U-turns or pirouettes” on selling State assets.

He was replying to Fianna Fáil leader Micheál Martin, who said there was a new, clear commitment to privatisation in the Government’s revised agreement with the troika.

He asked how Minister for Communications, Energy and Natural Resources Pat Rabbitte, who controlled many of the State’s most valuable assets, was able to state categorically recently that he would not be disposing of any merely to write down debt.

“Has the traditional Fine Gael ideology won the day?’’ Mr Martin asked.

“Or has the Government performed yet another U-turn that it hoped people would not notice?’’

Mr Kenny said Minister for Public Expenditure and Reform Brendan Howlin had asked every department to respond to him by the end of this month on the possibility and the potential of disposing of non-strategic State assets.

The matter, Mr Kenny added, had been raised on a number of occasions in discussions between the Ministers in the Department of Finance and the troika.

Mr Rabbitte, he said, had set out the strong view that in the event of any non-strategic State assets being sold at the appropriate time, the revenue should be used for job creation measures.

“Very few people would disagree with that,’’ he added.

Mr Martin said that was not what the Government had agreed to.

Mr Kenny said the conclusion of the discussions between the troika and the Government was that it could be dealt with on a case by case basis.

“No,’’ replied Mr Martin, “it states that there should be a disposal of assets to help reduce the Government debt.’’

Mr Kenny said elements of the original deal done by the last government with the IMF and the EU had been changed following discussions with the troika about stronger and greater efficiency measures and greater investment in the growth of the economy.

Mr Martin said the Taoiseach was resiling from a document an hour or two after its publication. “It states that the Government will dispose of assets to reduce the debt.’’

Mr Kenny said the troika had a clear understanding with the Government in respect of the sale of any non-strategic State asset and what it could be used for.