Semi-states must be shifted to new holding company to maximise returns

THE national preoccupation of living life through the rearview mirror meant that Peter Nyberg’s historic analysis of our economic crisis took precedence over Colm McCarthy’s privatisation prescriptions for state companies.

We already knew the causes and culprits of our credit and property bubbles. There’s no need to endlessly shift blame as Brian Lenihan sought to do by pointing the finger at the ECB. We should urgently address the plethora of vested interests that prohibit reform of our semi-state sector. McCarthy raised serious issues of inefficiency, poor returns to the taxpayer and confused policies that must be dealt with head on.

State companies have been exposed as being grossly over-manned, with executives excessively remunerated. Both head counts and wage packets appear unaffected by the severe economic downturn. Within 18 semi-state companies there appears to be significant feather bedding. Most disturbingly, significant share value is being lost to taxpayers through maintenance of enormous levels of employer pension contributions. Pension contributions by Dublin Port amount to almost 63% of pay levels. Comparative figures for the ESB are almost 25% and Coillte 40%. This is without parallel in the private sector.