Workers threaten to strike over ESB sale plan

WORKERS at the ESB could go on strike if the Government proceeds with plans to sell part of the state-owned company.

The Cabinet yesterday agreed to sell a minority stake in the ESB in an effort to meet the demands of the EU and IMF, which want Ireland to raise at least €2 billion from asset sales in a bid to reduce its debt.

The ESB, valued at €4bn in 2009, is considered the state’s prime asset, and a minority stake would be expected to raise several hundred million euro, depending on the size of the stake.

Other assets would have to be sold to reach the €2bn mark, with the state’s holding in Aer Lingus also being considered for disposal.

But the ESB stake is the first sale to be confirmed by the Government, with Communications Minister Pat Rabbitte announcing the decision in the Dáil. Mr Rabbitte said that while he found himself in an undesirable position, “the survival and viability of the economy” were at risk.

He said a minority stake “was not control”, adding: “There is no question of this Government handing over control — the ESB is of strategic significance in the Irish economy and we recognise that and the importance of the ESB in the context of energy security and energy supply.”

But one of the five unions in the ESB immediately announced its intention to fight the proposed sale.

Unite said a motion was passed by the ESB unions in July directing them to ballot members for industrial action, “up to and including strike action”, in the event of any sale, disposal, transfer or divestment.

“As a result of (the) Cabinet decision relating to the sale of some part of the ESB, we will now begin plans to ballot our members,” said Unite’s Jimmy Kelly.

However, Mr Rabbitte said the sale would not be immediate, adding that the Government would “take advice on when the market is right” to get the best price. He also said the Government would seek to secure the agreement of the troika to reinvest some of the proceeds rather than merely paying off debt.

An inter-departmental group will determine the size of the stake to be sold and make a recommendation to the Government by the end of November.

Sinn Féin TD Martin Ferris warned the sale of any part of the company would be “a disaster” for consumers and ESB workers.

“There is no rationale for the decision other than that the Government is being pressurised by the IMF and EU to sell off state assets in order to service the debt.”

Separately, the European Commission, which is contributing one third of the €67.5bn in bailout loans for Ireland through its European Financial Stabilisation Mechanism, has agreed to cut the interest rate charged on the money.

This follows a similar decision in July by eurozone members to cut the cost of their loans being made through the European Financial Stability Facility. It means taxpayers could save up to €1.5bn a year in interest payments on the bailout funds from the EU.