Public policy towards the sale of state assets in troubled times: Lessons from the Irish experience

The sale of state assets, both tangible (e.g. commercial firms) and intangible (e.g. radio spectrum), can address budgetary shortfalls. However, drawing on the Irish experience to inform this important issue, it becomes clear that much more is involved in selling state assets in electricity, gas, and transport than ranking such assets by value. Wider public policy considerations need to be taken into account in deciding what to sell and under what conditions. The paper outlines how these wider issues, relating to competition and regulation, can be dealt with so that the sale of state assets will enhance societal welfare.

► Selling state tangible and intangible assets can help address budgetary shortfalls.
► Need to ask the right questions: why state ownership? Where is the market failure?
► Privatise competitive activities; franchise/regulate monopoly activities.
► Auction intangible assets such as radio spectrum, oil drilling permits.
► The privatisation debate and regulatory reform agenda overlap.