'Nothing Underhand' About NewERA, says Kenny

The Taoiseach, Enda Kenny, has come under fire after creating a special body to consider Ireland’s options for raising €2bn by privatising commercial semi-states.

Mr Kenny has defended the formation of the NewERA shareholding body and rejected claims that the body was only formed to promote more ‘knee-jerk’ privatisations.

"This is not some cost quango that has been set up," the Taoiseach said.

"There's no intention here of the state rushing out to sell state assets. We have made it perfectly clear in the Programme for Government that the opportunity is to achieve the sale of assets to the value of €2bn.

"You are not going to wake up one morning and find that the Government has made a knee-jerk decision to sell-off."

Mr Kenny has been questioned over the appointed head of the NewERA body.

NewERA, the specialist unit to advise on potential privatisations will be headed by Dr Eileen Fitzpatrick of the National Treasury Management Agency.

Her job is to manage the state's shareholdings in ESB, Eirgrid, Coillte, Bord Gais and Bord na Mona and assess the potential for buyers, the economic impact and timeline for sales. She will liaise with ministers before reporting to Government.

Independent TD Shane Ross called on the Taoiseach to reveal what salary Dr Fitzpatrick was on. He also asserted that she was an insider appointed without advertising, competition or interviews and branded the appointment procedure flawed.

"A decision made behind closed doors like that is unacceptable, at any stage," Mr Ross said.

Mr Kenny has however defended the appointment saying that nothing "underhand" has went on.

Meanwhile Mr Kenny, as well as assuring that there will be no fire sale of state assets, explained the money raised from the sales would not only be used to clear debt.

He said that discussions would be held with the Irish Monetary Fund (IMF) to decide how much of the funds could be used for infrastructure and job creation.

(LB/BMcC)