The Irish Congress of Trade Unions has strongly criticised proposals to sell off state assets saying it "threatens to transform companies like the ESB or Bord Gais into another Eircom."
Speaking after a meeting of the Congress Executive Council, General Secretary David Begg said: "Selling state assets will cost jobs and see Ireland lose control over crucial areas of the economy. It's threatens a rerun of the Eircom fiasco.
"The Government says it will not sell 'strategic' assets, but the most valuable assets we own - energy transmission and distribution networks - are the most strategic. If the aim is to raise significant funds, those assets would have to be included in any privatisation programme, partially or in full," Mr Begg said.
"Companies like the ESB and Bord Gais - profitable and highly strategic - would be asset-stripped, weakened and eventually destroyed. Partial sales are the slippery slope to full privatisation.
"At a time when energy security is vital, we would lose control over the energy sector. The echoes of the Eircom fiasco are frightening: in that case we surrendered control of our telecom system just as the digital age dawned. Have we learnt nothing?
He said that when Congress met with Troika officials to discuss this issue, the latter had described privatisation as "marginal" to the programme for Ireland.
"If job creation is the goal, then privatisation is putting the cart before the horse. Instead, we should involve the State companies actively in infrastructure development and new energy generation. We could make Ireland an exporter of green energy.
"The best way is to do this is through a State Holding Company structure that would leverage investment from private Irish pension funds that hold over €70 billion in assets.
"One of Ireland's enduring vulnerabilities is the weakness of our indigenous industrial base. Looking to a future where Europe is more deeply integrated, it may be that our continued dependence on Foreign Direct Investment is not sustainable. In that context, to dispose of some of most successful indigenous industries is highly questionable."
Mr Begg pointed out that many state companies are already highly leveraged and have significant pension liabilities, which could complicate any attempted sell off.
Ends
Irish Congress of Trade Unions,
32 Parnell Square,
Dublin 1
Tel: (01) 8897799/ 087 9174171
