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Substantial reinvestment in economy from disposal of State assets - Howlin
The Government has now agreed the shape and scale of the asset disposal programme to be pursued as a commitment under the EU/IMF Programme, and as provided for in the Programme for Government.
The Government has agreed with the Troika the sale of state assets up to a value of €3 billion based on the guiding principles that there will be no fire sales. Integral transmissions and distribution systems will be retained in State ownership and full value will be derived for the State.
Minister Howlin on welcoming the decision stated
When we came into Government, the position was that no money from the disposal of assets could be spent on anything except reducing our debts. I am pleased that following intense engagement the troika has agreed that one third of the proceeds can be used for re-investment in to our economy. This is a substantial change to the Troika’s previous position and will help promote recovery in the economy.
Following detailed analysis which identified a range of complex regulatory and legislative issues the Government has decided not to proceed with a sale of a minority stake in ESB as previously signalled.
Instead, the Government has decided that alternative asset disposal options will now be pursued, to include the sale of:
Consideration will be given to the sale of some assets of Coillte (excluding the sale of land) and the sale of the States remaining shareholding in Aer Lingus when market conditions are favourable and at an acceptable price to Government.
These options will be considered in a manner that protects the economy and our key strategic assets.
It is intended that any issues arising will be addressed by the end of 2012 in order to facilitate transactions commencing in 2013.
For more details read the full press release here.