State Owned Enterprise in Ireland after the Crisis: Ownership, Governance and Prospects

State-owned enterprises (SOEs) play a major role in the Irish economy. SOEs are active and often dominant in vital sectors including public transport, gas, electricity and postal services.  However the SOE sector has been... [ view full abstract ]

State-owned enterprises (SOEs) play a major role in the Irish economy. SOEs are active and often dominant in vital sectors including public transport, gas, electricity and postal services.  However the SOE sector has been subject to major change since the global and domestic economic crisis that commenced in 2008.  Prior to the crisis it appeared that the SOE sector was dwindling as successive (centre-right) governments sought opportunities to divest of SOEs as part of a gradual programme of privatisation that commenced in 1991.  Although a number of divestitures were executed as part of the response to the fiscal crisis, this apparent shift towards increased privatisation was, to a degree, checked as new SOEs were created (for example, a new water utility) and a number of financial institutions were nationalised. The objective of this paper is to review changes to Irish government policy on the SOE sector since 2008 with a particular focus on the issues of (a) ownership; (b) financing and investment and (c) governance.  We examine how changes since the crisis have impacted on the portfolio of SOEs in Ireland, the nature of their public mission (has it waned or is it evolving?) and SOE performance.