Privatisation is way forward, says Walsh

FORMER Aer Lingus boss Willie Walsh has no doubts about the need for private ownership as the way forward for the Irish economy.

Having attempted to buy the national airline before he quit as chief executive, Mr Walsh’s support for the sale of Aer Lingus yesterday came as no surprise.

But he was not alone in his stance at the Irish Management Institute conference, that addressed the issue of privatisation, state ownership and regulation of markets, as part of its two-day conference called Crouching Tiger, Hidden Opportunity.

Communications Minister, Martin Cullen, took the conference by surprise when he called for the sale of up to 90% of the national airline.

However, it is understood that the cabinet are in favour of selling off a 51% stake of Aer Lingus into private hands.

The five speakers were virtually unanimous in their view that the State ownership should be kept to a minimum.

Brendan Tuohy, secretary general at the Department of Communications, side-stepped the question without totally taking the counter view.

Given the two issues involved, Mr Tuohy suggested market liberalisation with the State sector also involved. Noting the success of Ireland’s deregulation policies, he pointed out that the telecoms market was liberated five years ahead of EU requirements.

In that context, Mr Tuohy suggested that distribution networks such as the ESB transmission system could stay under State control.

Mr Tuohy made it clear the State was not under any pressure to sell, but he recognised there was a “dominance issue” in both the case of the ESB and Bord Gais.

In that context the possibility of the State buying back Eircom’s infrastructure in order to open up the market faster for broadband and other services was raised in the question and answer session.

Eircom chief executive Dr Phil Nolan, who totally backed the privatisation position, said that option was there at any time because the company was publicly-quoted.

John Fingleton, chairman of the Irish Competition Authority, was adamant on the question of over-regulation. “Get the State off our backs,” he said.

Mr Fingleton also disagreed with Mr Cullen’s view that the second terminal should be controlled by the Dublin Aviation Authority. “A competitive environment will deliver the goods,” he said.