McCarthy report - Fire sale will not fix our problems

FOR the Government to rush headlong into selling the ‘family silver’ at this difficult juncture in Ireland’s economic history would be sheer madness.

Tempting though we may find the underlying thrust of the McCarthy report on state assets and liabilities, it would be folly to embark on a fire sale of what remains of the nation’s wealth in a bid to reduce the country’s high level of indebtedness.

Colm McCarthy is not recommending a fire sale as such but he has effectively put an up-for-sale sign over the country. Politically, the hard sell approach is softened by the recommendation that key companies such as ESB and Bord Gáis not be sold off immediately but restructured and their regulatory framework strengthened. In principle this is a good idea and would go some way towards enhancing the competitiveness of the economy if assets were not sold.