The trade union movement has proposed combining ownership of commercial State companies in a new holding company which could raise money for Aer Lingus and other businesses on strict commercial criteria.
A new discussion paper from the Irish Congress of Trade Unions (Ictu), seen by The Irish Times, puts forward the idea of the new holding company with its own board and its role clearly set out by statute. The paper, which has been forwarded to the Government, says the idea should be seriously considered because it would give State-owned companies ready access to capital and "depoliticise the commercial State sector".
It suggests that a State Holding Company (SHC) take over the ownership of commercial semi-States from the Department of Finance.
Companies that wanted to raise capital would apply to the holding company for funds. Ictu says they would only be given funds if their proposals proved to be sufficiently robust. It says such an idea would remove the Department of Finance and the Oireachtas from influence over the day-to-day activities of State-owned companies.
Private pension funds would be invited to invest in the holding company and this would generate cash to invest in State companies, the discussion paper suggests. The paper says if a 10 per cent shareholding was sold this might generate €700 million alone to invest in State companies.
The directors of the SHC would consist of two Department of Finance nominees, three social partners nominees, one member from the private pension investors and three professional investment specialists. The holding company itself would be owned by the National Treasury Management Agency.