Ireland should not be ‘bounced’ into asset sale

Ireland should not allow itself to be bounced into selling off State assets, the chief executive of Bord Gáis, John Mullins, said last night.

In his presidential address to the Cork Chamber annual dinner in Cork City Hall, Mr Mullins said there were mixed feelings and views about the advantages and disadvantages of the sale of commercial state assets, many of them strategic, particularly at this time.

“In the main, these assets have served the country well. It is regrettable that the country is being bounced into these decisions because of our economic travails.

“It is also important that we set ourselves a reserve price for our assets — and no lower should we go. These assets are not owned by a number of individuals, they are owned by all in this room and all other rooms across the country.”

In a wide-ranging address, Mr Mullins said if someone wanted to learn how to successfully manage a crisis, they would not start their lesson with the unwieldy and unsteady approach of the EU to the current euro situation.

He said there are many who are of the view that Ireland has been a laboratory experiment for larger countries.

“A crisis like this can never be resolved when some parties are bringing significant domestic baggage to the table,” he said.

“The restoration of Irish business and domestic confidence can only commence with a resolution of this crisis, but bullying in the European classroom should never be tolerated — we did not sign up for that.”

Mr Mullins said that he was also convinced that AIB and Bank of Ireland were serious about re-engagement, particularly in the context of Government-set lending targets.

“But new lending does not mean conversion of overdrafts, unsecured loans or working capital conversions to term loans — that is what we would call re-heating. The citizens entrusted their emergency investment in banks to create liquidity and money supply in the economy.

“Businesses cannot survive on term loans alone — they need working capital. It is the role of banks to enable a restoration of the domestic economy.”

Mr Mullins said there was a view that the country was awash with suitable properties to house foreign direct investment companies setting up here.

“Facts on the ground do not back that up. We should not allow Nama to dictate industrial placement policy in this country as this could hinder the good work of the IDA.

“Yes, use a property if appropriate, but be conscious that with competitiveness comes increased FDI appetite of scale and we must ensure that infrastructure is ready.”

Mr Mullins said it was important that an autonomous strategic plan was developed and implemented for Cork Airport.

He said that “we must work towards independent ownership from the DAA”. He also said that the debt must be “restructured”, adding that if it could be done for the financial sector, it could be done for aviation.

“We have self-flagellated enough as a nation — it is time to move on. Confidence can be created, and the critical first and only objective of Europe is to remove economic, currency and liquidity uncertainty, which has thus far failed incrementally.

“Once this is achieved, our region and our country can return to renewed prosperity and employment.

“I know that the 970 business people here present are ready to fight for that dream.”