Bord Gáis Energy will not be sold because none of the bids for the State-owned enterprise are of an acceptable value, Minister for Energy Pat Rabbitte has confirmed.
Mr Rabbitte made the statement in the Dáil during a debate on the final stages of the Gas Regulation Bill, which aimed to restructure Bord Gáis Éireann to allow for the sale of its energy business. The Bill was passed without a vote.
Sale of the energy business was expected to be concluded by the end of this year but Mr Rabbitte said there would be no sale this year because of the value of the bids.
It had been estimated that the sale could yield €1.5 billion to the exchequer. The Minister said, however, the Government would “consider its options for the Bord Gáis Energy business and the enactment of this Bill keeps all options open”, including a future sale of the company which would require the enabling legislation.
Mr Rabbitte said "the sale process attracted significant interest from a broad range of potential international acquirers, reflecting positive international sentiment towards Ireland".
Highlighted concerns
He highlighted concerns made during debate on the Bill by a number of TDs that it would end in a "fire sale of assets". Mr Rabbitte said he had repeatedly stated there would be no fire sale and that disposals would be undertaken only when market conditions were right. "This decision underlines my commitment and reflects my resolve to ensure the State achieves value from the State asset disposal process," the Minister added.
Undervalued
Fianna Fáil's Dara Calleary welcomed the decision and said it had always been a concern that the company might have been sold undervalued. He asked what the Government's "Plan B" was on the issue.
Mr Rabbitte said it was not a case that the Government had decided not to sell the energy business. “The future will look after itself because this is a thriving business.”
They would continue to develop the company and assist it in every way they could. “If a fair price is on offer at some stage in the future, the Government will consider that at the time.”
He would advise the House of that decision should it arise.
Last week in the Dáil there were heated exchanges when Fianna Fáil public expenditure and reform spokesman Seán Fleming suggested that since Ireland was exiting the bailout the troika would no longer be in place and there was no longer a reason for the sale of State assets.
To repeated heckling he challenged Tánaiste Eamon Gilmore about Labour’s continued support for the sale of State assets when Fine Gael were now the only ones asking for a sale. Mr Gilmore derided the Fianna Fáil TD for his hypocrisy and his party’s actions in government that resulted in a deal with the troika for the sale of State assets.
