MINISTER FOR Energy Eamon Ryan will today strongly defend public ownership of key semi-State companies at a time when a Government-appointed group is investigating the merits of selling off such State assets.
In a speech this morning Mr Ryan is expected to argue that selling off key State assets in the energy sector could be counter-productive in the long run.
A Government source said yesterday the Minister’s address would amount to an “unashamed defence” of major energy utilities as the ESB and Bord Gáis and caution against the merits of divesting them from State ownership.
An expert group, chaired by economist Colm McCarthy, has been assessing the scale and value of the assets and liabilities of semi-State companies. It is expected to report its findings to Government by December.
While the Government has said there is no “predetermined outcome” to the group’s deliberations, there is widespread expectation that the McCarthy group will recommend some level of sell-off.
However, the Green Party has expressed unease about State assets being sold off. In particular, Mr Ryan has been vociferous in his opposition to State energy companies being disposed of. In this morning’s speech he is expected to set out the reasons why he believes that Bord Gáis, Eirgrid and all of the ESB group of companies remain in State ownership.
He will say that major energy semi-State companies contribute in four ways to the economy: they provide vital infrastructure; produce dividends from profits to the State; are major employers; and are at the forefront of innovation.
Mr Ryan will focus on the area of renewable energy and the impact of an increased percentage of wind energy as a source on electricity prices.
The speech is expected to lay down a marker of the Green Party’s opposition to the disposal of semi-State companies ahead of the publication of the McCarthy group’s report.
It is estimated that the sale of the two major energy companies could realise a windfall of over €5 billion for the State.