ESB ready for fight as State eyes up its profits

THE ESB is to resist attempts by the cash-strapped Government to take 50% of its profits to help fill the gaping hole in the public finances.

Talks between the Government and the ESB over the payment are due to begin shortly but management believe the amount is too large and will hamper the company in the long run.

The size of the proposed dividend payment is out of line with what other State and semi-State companies pay the Exchequer. Bord Gáis, for example, paid just over 25% of its post-tax profits to the Exchequer last year.