A welcome roadmap for a change in semi-states’ delivery

FOR many of us long-time advocates of substantial reforms in the public services, the report of the review group on state assets and liabilities, also known as the McCarthy 2 Report, offers some promising reading.

Instead of calling for a fire-sale of state assets in line with the media and public anticipation, the report provides a longer-term perspective on the assets’ valuation, placing their total realisable value at about €5 billion. The optimistic level of this figure, especially given the levels of debt and pension liabilities already carried by many semi-state companies, strongly suggests market valuations consistent with longer-term value, rather than a quick disposal.

From the starting point of the report, it is clear that, in the view of the group, state asset sales should not be used for the purpose of raising quick cash. No plugging the holes left in our balance sheet by fiscal imprudence of the boom years politics – aka, the Social Partnership or the banks. Instead, the disposal of assets should be structural, drawn out over time and strategic in nature.