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THE SALE OF State-owned Bord Gais Energy is expected to be confirmed by the end of this year, Minister Pat Rabbitte has said.
The Government hopes to get around one billion euro from the sale of the company, which was officially put on the market in May of this year. The move is part of the Government’s agreement with the EU/IMF/ECB troika to raise around €3 billion from the privatisation of State-owned assets.
Half of the money is expected to be used to pay down debt while the Government has said the remainder will be used for job creation measures.
Bord Gais Energy has around 775,000 customers in Ireland. The company is made up of an energy supply business, a gas-fired power station in Cork, a large scale portfolio of onshore wind assets, and an energy supply business in Northern Ireland.
Speaking on the Gas Regulation Bill 2013 in the Dáil today, Minister for Communications, Energy and Natural Resources Pat Rabbitte stressed that the Government recognised the strategic importance of keeping the gas infrastructure network in State ownership.
He told the Dáil that a speedy sale was crucial for the economy.
“It is important to maintain the momentum on the sale process so that proceeds can be reinvested promptly, once available, to ensure an immediate impact on the economy and jobs,” he said.
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1 billion would be pocket money for a company like shell to buy it, might as well sell the cliffs of Moher and the rest of the country while there at it!
Don’t give them any ideas
And they want us to stop cutting turf! Ha!!! Over my dead body!
What I love about all you boys is that never at any stage does the fact that the Irish Republic is practically bankrupt enter into your heads. Denial is a wonderful, if debilitating thing…
Bord gais to be sold ( hence the reason for water metering which was sent over to bord gais +plus a price rise in gas prices all incentives for the private sector to gouge us a little bit more)
And who gets the water charges now…O that’s sold as well..Jayus some peoples timing is just perfect.
@ Philip: The same private sector which created, tested and built the phone/computer you used to write your comment.
Also note that Irish Water is not being sold off. Should really be stated in the article that only one subsidiary of three is being sold.
ryan the internet was created by universities not the private sector
Asset stripping at its finest.
Bord Gais Energy is being sold, this is the energy retail division of bord Gais eireann. Irish water and bord Gais networks still owned by the state.
Disgraceful. Watch the bills go through the roof now. Shitebag enda.
This is bad news f/g privatising everything only means one thing higher prices
So that’s water waste gas all in the hands of a private company why can’t we just have these services running as a not for profit public service
Quick question- which Hospitals, Schools, Garda barracks and Fire Stations would you like the Government to close so that the State can stay in the has business? Remember, that’s €1billions worth you need to come up with. No pressure.
Gas business.
@ Goebong:
To be honest it is a pity that more isn’t being privatised like RTE and certain Dublin Bus routes.
The Fine Gael New Era plan envisaged selling a number of assets to provide funds to set up new state companies focusing on renewable (bio) energy and broadband. Unfortunately Labour became coalition partners and most of the plan got scrapped.
Maybe the 500 million euros will be used to create jobs bring proper broadband to the whole island.
Half the money is supposed to be for job creation Egg, the other half paying down debt. Can you see the Government putting e500 million toward job creation?
I’d doubt the money is ring fenced.
Is that that you Eamon ?
Im Eamonn.
I wish someone would buy the public hospitals and Dublin bus,but who in their right mind would ever want to buy them.
There is no reason other than ideology. Privatization world wide has resulted in universal gouging of consumers. Who funds political parties? Private interests – go figure.
P r I c k.
Gouging of consumers you say,a union run public hospital here sends a bill for one nights stay on a trollie in a public corridor for 1150 euro,to a private health insurer,is it any wonder the premiums are through the roof.
The gas network or Irish water are not being privatised.
They could also streamline the company: get rid of all the wasters: hey presto – more profit – no price increase!!
I wish they would realise there is an Ireland outside if the Pale !!!
And of course the consumer will be shafted….. yet again !!!
The raping of our nations assets continue .. Oil . Gas. Electricity . And our god given right water . Wake up people
We’ll do nothing. Even when we’re forced to pay for a d install meters in our homes to pay for a substance that freely falls from the sky and constitutes the majority of our own very bodies.
@ james: The State will still own a) The ESB and b) both the oil and gas networks. This is simply the energy supply part of Bord Gais being sold off.
Ryan – are you a member of FG?
Well Niall I suggest you collect the water that falls free from the sky and use that to drink wash and flush… otherwise consider the costs in getting the water from the ground to your tap.. the cost of the pipes, the purification and sanitising, the wages of those who do it all..
@ Enola: Nope. I just think that competition is a good thing in most industries. Plus I think the mistakes of the Eircom sale have been learnt in that the networks in question aren’t being sold off, just the consumer side.
Ideally I’d like to see the telephone network taken back from Eircom and controlled by a semi-state company, so that broadband access could be better provided nationally.
Leakage is the problem Sean – we all know there’s leakage. But remember Philip hogan telling us recently that wars will be fought over water in the decades ahead?
He’s right – but we’ll be exporting it to them Sean. As we’re at it, lets have a grass tax.
don’t forget our water
Ryan – as I said this has nothing to do with competition. It would be extremely naive to believe so.
Ryan – I wouldn’t go back to Eircom if you paid me. I have 150 Meg broadband (and my phone) from UPC. Real broadband. Not that phone line crap.
I’m paying e80 a month for 20meg. And my phone is separate. That’s the joys of living in the sticks Enola. Now I’ll be hit with the broadcasting charge too.
It’s nuts Niall. My sister is one mile from Waterford and she gets under 1 Meg (on a good night). For €75 a month.
we had to increase prices in electricity in order to attract “competitors” into the market
I believe Philip in years to come we’ll look at the post of energy regulator as we do of previous financial regulators now.
So your saying that as a nation water has never been paid for through other taxes? This is just another excuse to extract more money!
“Ryan – I wouldn’t go back to Eircom if you paid me. I have 150 Meg broadband (and my phone) from UPC. Real broadband. Not that phone line crap.”
You are proving my point. Imagine if you only had Eircom to choose from. Not a nice thought at all is it? The unfortunate thing is that they still own the phone line network. That’s why I advocate it being renationalised and put under semi-state control, and then the profits from this sale being used to invest in upgrading.
@ phillip: Electricity prices have been rising globally. Unfortunately demand for oil is high and it is becoming increasingly scare, pushing up prices.
Ash, you are a party hack and a t wat. Begone.
50% of it stays in the ground, because of leaks!
It does, so we need a better model to fund the water network.
im in south tipperary and we occaisionaly reach the dizzy heights of 1 meg broadband, its because were still on the old ‘copper phone line’ type exchange apparently, even if i did switch to a different supplier i’d still only get the same broadband speeds, and everyday we hear one politician or another telling us how importent ‘future technologies’ are to the employment prospects of this country.
Sell our national assets. Great plan. Why would anyone buy it unless its worth more than they’re paying? Watch bord gais being hocked to the hilt, shareholders make a killing, company will be left with billions in debt – and guess who will have to ride to the rescue. You and me.
If any civil war party ends up the majority in govt next time we may as well throw in the towel. This is daylight robbery
That’s Gas!
Just after they tied Irish Water to it. Sc umbag Labour.
Well spotted never thought about that we are rightly fecked
@Enola:
Irish Water will be a subsidiary of the main Bord Gais company.
Bord Gais Energy is also a subsidiary and that is the part being sold off in this case.
And notice the language Rabbite uses Enola – “a speedy sale is essential for the economy…,”
In other words sell it fast and for f”ck all.
Indeed Niall. This has fcuk all to do with competition. It has everything to do with bond holders.
Why sell a profitable growing business that delivers cash to the coffers?
Put Rte on the market for 3 billion, obligations met and a parasite gone.
Now that I think about it, all those price increases (compounded, of course) that were granted in the last two years, was that the state cooking the books?
Have struggling families been landed with unjustified increases in their bills just to increase the market value of a company?
Something’s not right here.
This government is like the thatcher government years ago on England.
They never care about the ordinary people but only themselves.
Shame on you kenny and your muppets.
The government will still own Electric Ireland (ESB). There is no logical reason for the government to own two of the three main energy companies in the state. Hopefully greater competition will drive prices down.
And the sooner our energy grid is connected to the UK’s, the sooner it can be diversified all the more.
Ryan – what planet are you on? Seriously?
Earth. Why? Which are you on?
Drive prices down?! In your dreams. This has NOTHING to do with competition.
Remember back in the 1970s how it took months and months to get a telephone line installed? Remember how up until the late 1990s there was only one fixed line operator which had a limited variety of packages? Now there are a plethora, each with their own variety of packages and some which specialise in certain types (e.g. long distance).
Competition increases customer value. At present more than half of energy consumers have their accounts with a government controlled semi-state (be it Electric Ireland or Bord Gais Energy). This sale will help change that and lead to innovation in terms of the packages offered.
Ryan – this is about bond holders. Not competition.
When I tried to explain some basic economics, that was dismissed as gibberish. It is no use trying to debate you since you repeat the same old mantras (like an empty vessel) rather than responding to the points I make.
Gee, Ryan, that’s just great. Would you ever f off.
Ryan – it IS gibberish. Pure and simple. All the economic rules were adjusted for idiot bankers. While maintaining the status quo for ordinary people.
I think it is you who would have problems with “pictures” TBH. You’re in complete denial about what’s going on.
“Gee, Ryan, that’s just great. Would you ever f off.”
Sheik Yahbouti, sorry for spouting truths you don’t like. I have contributed more to this discussion than you have.
Enola:
What way should the economic system be designed? You dismissed what I said yesterday as gibberish, so lay out your own stall then. And I’m not talking about simplistic platitudes such as “burn the bondholders” or “end austerity”. You seem to know better, so please do go ahead and share your wisdom.
Ryan – this is fairly basic stuff which you can’t seem to grasp. There are two basic tenets to Capitalism – you succeed or you fail based on the economic rules of that system.
In effect you gamble. As do banks and bond holders. They lost. And are still trading, hounding people. And the rest of us must pick up the tab? I don’t think so.
You seem to take offence at this very basic thing being pointed out. Perhaps you are working in financial services and have a vested interest? That appears to be the only explanation.
Burn the bond holders (gamblers)? Of course. Shut down insolvent businesses (banks)? Certainly. Why should they be treated any differently?
I don’t know why you’re cheer leading them. It is an incredibly stupid outlook to have TBH.
And still you just criticise the existing system rather than suggesting a new one, as I asked. Whinging is something you seem good at, solutions and alternatives not so much.
Ryan – I am not advocating a new system. Merely that the existing rules be applied to ALL parties – including the gamblers and degenerates who caused this. Basic economics.
I ask again – are you working in financial services?
No, I don’t work in financial services. I just believe industries work better when there is competition. As we have established, it is better that there is more than one player in the telephone market than just Eircom.
By the way, I don’t take offence at anything you pointed out. It was the dismissal of my explanation as gibberish that was offensive as I answered someone else’s question. Bad manners.
Your explanation wasn’t gibberish. But the economics theory behind it – due to recent events – could now easily be described as gibberish.
Enola, you are correct in that if the principles of a private market were upheld, the banks would have been liquidated years ago. But among the financial ‘gamblers’ to be burned are the banks depositors – ie. any person who has money lodged with the institution. If the government were to standby and allow the banks become insolvent, they would be watching the savings of every irish citizen fall to the greed of the markets.
The financial system is the single most important structure in any economy It pains me to admitt that a bailout was the correct decision however I fail to see why the instigators of this crisis should escape unpunished, currently the only loser is the taxpayer.
Ryan your theory is correct and you make relevent examples. Competition is what keeps prices low but as earlier commenters have suggested, the private industry is unwilling to provide good service to rural areas due to the lack of profit available from small population. The government could be clever and create a contracted agreement with the purchaser that they have to provide a certain level of service to these areas but this will devalue the sale and I cant see our cash-hungry government wanting that.
Overall, if we still keep at least one state owned energy supplier (for both gas and elec.) then I see tis as a positive move to increase privatisation and decreas our soverign debt. Bord gais was well run so hopefully there wont be many job losses as a result of its privatisation.
There’s them words again “job creation” haha since 2008 theyes have totally over used this word and under achieved its actual promise. So tell me again why it is us who will be paying through the nose for this for the sake of 1 billion euro to a monetary fund that has proven in history to illegally attain a country through massive debts that will NEVER be cleared and continue to rise therefore screwing this and other countries so there is no hope of a country returning to prosperity therefore having to depend on cheap credit that becomes dear once you’ve spent too much!
The UK got a bailout from the IMF in the 1970′s and later exited from their programme. And in fairness there is sufficient evidence that Ireland would have been better off had it been bailed out by the IMF alone, rather than the European partners.
Regarding the debts, the key to is to get growth in the economy so the debts become a lesser % of GDP. And growth, albeit slow growth, has returned to the Irish economy.
Ryan – for all the economics gibberish you’re missing one key point. Banks. For which all of the rules were changed. And who continue to punish people under the old rules.
Economics gibberish? Well, I’d offer to draw pictures to explain it to you, but you probably wouldn’t understand them. Or would just dismiss them as more gibberish.
As I said above – economics and the capitalist system appear to be incompatible. Rules went out the window for banks. So it is, indeed, gibberish.
irish water looking after our greatest natural asset …water..then being sold off to the highest forign bidder
foreign
We will be selling the Blarney Stone next.
This has been the plan of the asset stripping IMF/World Bank all along.
Debt trap a nation with bank “guarantees” and “bailing out” banks with ponzi money schemes (still in effect today) – then asset strip the nation as part of the negotiation for even worse rip off T-bond sell offs – while you’re at it Also impose lifelong tariffs and extortion’s on the plebs. You could not hand over a country faster than the devastation of the foreign manipulated central bank and ministry of finance.
This has been done to many many countries but you won’t be told this by Reuters and AFP feeds because the same f/kers own them too.
And the Irish kiss the backside of AJ Choppra when he comes to town to rape your country.
We don’t even have a fractional reserve banking system – we have a ZERO reserve banking system – there is nothing in the vaults to exchange for your paper money – it’s worthless.
They’ll be selling the air next.
At the risk of repeating myself and being a complete bore, may I reiterate NO SALE OF VITAL NATIONAL INFRASTRUCTURE. F the Troika and all those in the pay of the multinationals. The same deal has been done worldwide st the behest of the IMF with ruinous consequences. Let us resist as strongly as we can. Bear in mind that this Company, or division thereof, will be responsible for ‘Irish Water’. Let us lead the way in resisting whatever foreign multinational who is set yo snap up this bargain. It is long past time when we should demand to know the interests, the assets, the shareholdings of those who are set up to make these demands of us. Let us insist that the cam of worms be opened and the rotten-ness at the heart of the EU and the IMF be exposed.
At the risk of repeating myself, Bord Gais Energy is one part of Bord Gais (the consumer side). Irish Water and Bord Gais Networks (the supply side) are two other parts. Only Bord Gais Energy is being sold.
Get it yet?
The robbery continues ably abated by those we elect, the same ones that ruined us, the ones that continue to ruin us, and all with impunity. What have we become?!
Eircom all over again…
What will happen to Irish Water isn’t thus new company part of Bord Gais
So much for not privatising the water company
Irish water is not being sold… Yet…
Just as we were getting used to calling the grand canal theatre the bord gais energy theatre! Whatever next… The nama theatre?
Introducing the biggest inefficiency of all to the utilities market… Profit.
Who would buy this? Good looking trying to get semi state staff to do an honest days work
Public and private mix is all nice but we do not need a Enron/California incident
Imagine we tapped our own gas supplies and distributed it through Bord Gais network.
Is that too simple ??
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