Public Enterprise and Privatisation in Ireland

Abstract

When measured in terms of the number of divestitures or the size of revenues, privatisation activity in Ireland has been low in international terms. This, however, is a reflection of the size of the Irish economy rather than the scale or reach of privatisation activity in Ireland. As we show in this chapter, the Irish state has withdrawn from direct activity in a number of key sectors of the economy including telecommunications, air transport, shipping and banking (though this was reversed following the banking crisis in 2008). Besides altering the composition and structure of these sectors, divestitures have had a considerable impact on the exchequer as well as different stakeholders. Nevertheless, the history of privatisation in Ireland differs significantly from that of the UK and other comparable countries in terms of the timing and rationale for sales, as well as the details of divestitures. In addition, the state continues to play an important and sometimes dominant role in key areas of economic activity such as energy, airports and transport.