Ireland government mulling sale of state businesses

The Irish government is considering a sale of key state assets, and include ESB, the largest electricity utility; Bord Gáis, the gas utility and the Dublin Airport Authority.

These latest options to reduce the Irish deficit were leaked in a report published today by Pat Leahy, political editor of the Sunday Business Post. The proposals for hiving off these state assets are believed to be in the process of being drawn up by the Department of Finance before presentation to ministers.

Ministers will then decide whether a sale of government assets will be preferable to a larger cut in capital spending budgets. Cuts of £1 billion are already pencilled in for 2011. But having additional funds from a privatization or trade sale would allow the government reserves for a stimulus package when required.

Opposition to a sale of state-controlled companies is likely to be strong from trade unions, sections of the government and opposition parties. The semi-state companies in Ireland are traditionally highly unionised and staff are generally higher paid than elsewhere in the public sector.

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