ESB will not be sold off in Government lifetime, says Ahern

THE sell-off of the ESB in the lifetime of the Government has been ruled out by the Minister for Communications Dermot Ahern.

Stating that he does not want to see a public monopoly turned into a private monopoly, the Minister said he does not want to see any privatisation as long as the ESB holds more than 50% of the market share.

The network would have to remain in State hands as a key infrastructure, the Minister also said.

The Government's official policy on the privatisation of semi-state bodies is to examine each one on a case-by-case basis.

The ESB is regarded as one of the most attractive semi-state companies for privatisation as similar to Eircom it dominates its market and would raise a multi-billion euro bonus for the Government.

But in an interview with the Irish Examiner, Minister Ahern said he would be against selling off the ESB network the wires and laid down criteria in the event that the company ever was to be sold.

"I have already asserted that I am against privatisation of the electricity network. There are key-infrastructures, which the state needs to maintain ownership of this is one," he said.

ESB management and unions are agreed that the company's share of the market must fall to 60% by 2005/ 2006, but analysts say it will probably only reach 70% by that point.

"I am also opposed to privatising ESB in any form while it maintains more than 50% market share in the 26-county market. I am opposed to turning public monopolies into private monopolies.

"My line on this is clear. I will consider privatising ESB under two clear conditions; One: That the network in its entirety remains in State ownership. Two: That the company has less than 50% market share," he said.

Although he is not directly critical of the sell-off of Eircom, the Minister is clearly against the privatisation of key infrastructure.

In a speech in Rome last week, Minister Ahern spoke of the need for State intervention in key markets and of how a private company only had to consider its shareholders while the Government had to look after the interests of the country.

The expansion of the broadband high speed internet access network across the country is top of the Minister's agenda and its delivery is seen as vital towards maintaining economic competitiveness particularly outside of Dublin.

But at present, the Minister is understood to be planning to build new telephone exchanges to deliver high speed broadband because of an apparent logjam with Eircom.

This week, Minister Ahern will be in Korea and Japan where he will view new technology developments and where he will see what these countries are doing to keep their economies ahead of the game.