The McCarthy review group on State assets has recommended a planned programme of sales to reduce the State's high level of indebtedness.
It backs the disposal of much of ESB and Bord Gáis, but says their core transmission assets in gas and electricity should not be sold to private interests in the immediate future. The group believes that such a disposal in the Irish context would carry risks.
Read more on the main recommendations here
The report also calls for the sale of Bord na Móna and a number of other assets and the sale of the State's 25% stake in Aer Lingus.
But it warns against a rushed sale process, as this could prevent the achievement of value, and in many cases would not be prudent or even possible given the requirement for changed regulatory procedures and complex legislation.
The report does not put valuations on individual State assets - as these depend on many factors including what a buyer will pay.
The net asset value of commercial company assets whose disposal is recommended is about €5 billion - but the review group warns that this is no more than a rough guide to what might be achieved.
Minister for Public Expenditure and Reform Brendan Howlin said the Government would now study the findings and recommendations in detail. 'As set out in the Programme for Government non strategic assets up to a value of €2 billion will only be sold when market conditions are right and when adequate regulatory structures have been established to protect consumer interests,' he said.
The group recommends a restructuring of state companies and strengthened regulatory arrangements as a prelude to possible sale, but also to enhance the competitiveness of the economy even if assets are not sold.
It also recommends changes in the governance of state bodies while they remain in public ownership to enhance efficiency and performance.
The group does not propose that all assets be sold off. In the case of land-based assets in particular, the report proposes that the State sell the rights to reap the produce of the land but not the land itself.
The review proposes that intangible assets like rights, licences, options and leases should be treated in the same way as tangible assets. They should invariably be sold to the highest bidder.
The review notes that the group's appointment pre-dates the resort in November 2010 to official financing from the IMF and the EU.
It notes that the IMF/EU memorandum of understanding does not specify any target for an asset disposal programme.
Unions not happy with ESB/Aer Lingus proposals
The Irish Congress of Trade Unions says its initial response to the McCarthy review group on State assets is that it has little to offer the country at this time.
'We will undertake a forensic study of its contents and reasoning and issue a more comprehensive statement in due course,' the ICTU's General Secretary David Begg said.
'The correct retention of regulated network assets in public ownership means that there is little of significant value left to sell. Moreover, the experience of privatisation of telecommunications assets with the Eircom debacle has been very bad, as evidenced by the poor quality of broadband infrastructure in this country,' Mr Begg said.
The IMPACT trade union today said that the McCarthy report's recommendation to sell its 25% stake in Aer Lingus is at odds with the report's analysis of the strategic value of the company's Heathrow slots.
The Coillte branch of IMPACT, which represents workers at the state owned forestry company, is also opposed to the proposed sale of the company. It has said the recommendation to discontinue Coillte's replanting obligation and grant-aided forestry, would create a 'carte blanche' to run down the forestry industry in Ireland.
The UNITE trade union, which represents electricity workers across the island of Ireland, has vowed to oppose the McCarthy report proposal to break up and sell the ESB.
'Colm McCarthy's latest proposal to break up the ESB will do fundamental damage to Ireland and will be opposed using every means at our disposal by UNITE members,' commented Unite regional officer Richie Browne.
