The Minister for Finance, Michael Noonan T.D., the Minister for Public Expenditure and Reform, Brendan Howlin T.D. and the Minister of State for NewERA, Fergus O’Dowd T.D., today announced the establishment of NewERA and the Strategic Investment Fund under the National Treasury Management Agency (NTMA) and the appointment of Dr. Eileen Fitzpatrick as its Director. NewERA is a commitment in the Programme for Government and is central to the Government’s plans for job creation and investment and for reforming how the Government manages its semi state companies.
Minister Noonan said:
"The Government has taken the decision to establish NewERA to reform the manner in which Government manages its shareholding in the Semi State companies.
NewERA will carry out the corporate governance function, from a shareholder perspective, of ESB, Bord Gáis, EirGrid, Bord na Mona, and Coillte, reporting to the relevant Ministers. Its operation will be overseen by the Cabinet Committee on Economic Infrastructure.
In this capacity, NewERA will have responsibility for reviewing capital investment plans of these commercial semi state companies from a shareholder perspective and will identify possible synergies between investment programmes of different State companies. Where requested by Government, it will also advise on, and if appropriate oversee, any restructuring of State companies and it will work with the Minister for Public Expenditure and Reform on the disposal of State assets.
NewERA will initially be established on a non-statutory basis as a Shareholder Executive within the NTMA. It will bring forward proposals for consideration by Government on options for moving towards a full holding company status which could own the shares in commercial semi-states.
I am happy to announce that Dr. Eileen Fitzpatrick has been appointed by the NTMA as Director of NewERA and I wish her the best of luck in this new endeavour."
Minister Howlin said:
"The decisions we are announcing today are an important element in the Government’s strategy to create jobs and promote economic growth. Through NewERA and the Strategic Investment Fund, we will maximise our resources to enhance growth in the Irish economy. The Strategic Investment Fund, which will be the forerunner of the Strategic Investment Bank, will, following appropriate legislative changes regarding the NPRF’s investment policy, channel resources from the NPRF towards productive investment in the Irish economy. As well as money from the NPRF, the Strategic Investment Fund will seek matching commercial investment from private investors, and target investment in areas of strategic significance to the future of the Irish economy.
In addition, the Government has already announced that it is prepared to sell a minority stake in the ESB, as an integrated utility, as an initial intent of its commitment to release value from existing state assets. The Government is currently examining options for the possible disposal of further State assets, and has recently requested the Department of Public Expenditure & Reform, in consultation with relevant line Departments and NewERA, to consider a number of possible candidates for disposal and advise the Government in relation to the appropriate valuations to be placed on the assets in question, and on the most appropriate method of disposal, likely timeframe and economic impact of any such disposal, in order to inform any further decisions that the Government may wish to make in this regard.
NewERA will have a key role to play in advising on the appropriate valuations to be placed on the assets under consideration and on the optimal method of disposal in each case."
Minister O’Dowd said:
"This announcement of NewERA is another example of this Government doing everything it can to create jobs and improve Irish infrastructure. Using proceeds from the sale of State assets and existing NPRF resources, subject to the agreement of the external partners, NewERA will work with line Departments and the private sector to develop and implement proposals for commercial investment in line with Programme for Government commitments in Energy, Water and Broadband. It will also examine other commercial investments and build upon existing work by the NPRF by developing a Strategic Investment Fund.
Ireland needs to continue to improve key infrastructure in the areas of energy, water and broadband to maintain Ireland’s attractiveness as a place to do business and to create jobs. In these times of scarce resources, NewERA will offer a new means of facilitating investment in our economy."