Semi-states look good in shop window

THE announcement of tentative plans for a management buyout (MBO) at Aer Lingus throws a spotlight on other semi-state organisations where management teams may also be thinking bigger than simply delivering respectable dividends for the Exchequer.

Those at the semi-state helm have been slow to rule out taking their companies out of state hands and into the private sector. Many market observers, as well as trade unions, would not be surprised at the existence of a hidden agenda in the boardrooms of the ESB, Aer Rianta, Bord Gáis, VHI, and even less obvious candidates like Bord na Móna. The government, however, plays down speculation that any of its semi-state jewels or headaches may soon be in the shop window.

ESB chairman Tadhg O’Donoghue was non-committal about the group’s plans after it announced profits of €354 million in May. “We looked at this issue four years ago and concluded at the time we were not ready. However, you must also bear in mind that the minister and government have said they do not envisage the network going out of state control,” he said.