Publication of Nítrigin Éireann Teoranta Bill 2000

Mary Harney, Tánaiste and Minister for Enterprise, Trade and Employment today (Thursday 1st June 2000) announced the publication of the Nítrigin Éireann Teoranta Bill 2000, which was recently approved by the Government.

The main purpose of the Bill is to provide for the transfer of the State-guaranteed debt of Nítrigin Éireann Teoranta (NET) to the Minister for Finance, with a view to its transfer to the National Treasury Management Agency (NTMA).

In 1987 when Irish Fertilizer Industries Ltd. (IFI) was formed from a joint venture between NET and Imperial Chemical Industries plc (ICI), NET became the holding company for the State’s 51% shareholding in IFI. NET retained the historically-accumulated State guaranteed debt, which is currently in the region of IR£180 million (€ 2 2 9 m i l l i o n ) .

NET 's main source of income since the joint venture began in 1987 has been from sales of gas to IFI. The gas agreement, under which NET sold gas to IFI, expired at the end of 1999. There are no plans for NET to generate further sales income from this source, and, therefore, alternative arrangements are required in order to repay and/or manage the debt.

The Bill also makes provision for legislative changes which would be required in the event of a future sale by NET of its 51% shareholding in IFI.

The Tánaiste has indicated that the sale process of IFI may be re-activated if market conditions are favourable.

“While the recent sale process did not progress to a satisfactory conclusion, the possibility of a future sale has not been ruled out. I am seeking to secure the long term future of IFI by locating a purchaser who is committed to IFI as a manufacturing operation. If a suitable purchaser emerges, the possibility of a sale will be explored” she said.