Forfás, the agency which advises the Government on industrial and science policy, has said a review of the role of State bodies should focus on their role in supporting economic growth, and not just how much money they could raise if they were sold.
Earlier this month, the Department of Finance announced that UCD economist Colm McCarthy would head a review of 28 semi-state bodies.
Today, Forfás said State-owned enterprises played an important part in the Irish economy, employing over 41,000 people directly, and could play a key role in supporting economic recovery.
The agency has published a paper recommending that the Government should develop a national policy on the role of State companies and implement clearer rules for how such companies should be run.
Forfás says that any privatisations should be complemented by policies that promote competition and effective regulation of the industry in question. The agency says 'natural monopoly assets' - such as electricity transmission lines and gas pipelines - should not be sold to dominant competitors.
It also says that managers of State bodies should be free to pursue commercial opportunities abroad, provided they fulfil their objectives at home.
