THE SALE of State assets, including a stake in the ESB, was discussed by the Cabinet yesterday but no final decisions were made.
A Government spokeswoman said a memo had been brought to Cabinet by Minister for Public Expenditure and Reform Brendan Howlin based on a report from the asset review group.
She said initial discussions had taken place involving the outcome of the review and the potential for disposal of assets but no decisions had been reached yesterday.
The spokeswoman added, however, that decisions will have to be made before the next set of negotiations with the EU-IMF team begins next month.
It is understood that the memo brought to Government by Mr Howlin outlined a number of options and the sale of a stake in the ESB was at or near the top of the list.
Under the terms of the EU-IMF bailout the Government is obliged to undertake an “independent assessment” of the electricity and gas sectors. “When complete, the authorities will set targets for their possible privatisation,” according to the deal.
Taoiseach Enda Kenny earlier this week repeated the Government’s commitment to raising €2 billion through the sale of State assets to fund the job creation projects identified by the New Era project.
Minister of State at the Department of Communications, Energy and Natural Resources Fergus O’Dowd has been given responsibility for the New Era plan, which is aimed at creating 100,000 jobs.
In its quarterly assessment of the Irish economy this week the IMF urged the Government to raise €5 billion from the sale of State assets rather than the €2 billion to which it is already committed.
The final decisions on what assets to sell will depend on the progress of negotiations between the Government and the EU on whether some of the funds used from the disposal of State assets can be used for job creation rather than simply paying down the national debt.
