IT may be time to "democratise" the semi-state sector and allow people to take up individual shareholdings in companies originally founded with their tax pounds, the Fianna Fail leader, Mr Bertie Ahern, said yesterday.

Mr Ahern told the joint business council of IBEC that his party was conducting a detailed analysis of the semi-state and State-sponsored sector and its potential for the future.

"A major review of the government's relationship with commercial State-sponsored bodies, and government policy towards them, needs to be undertaken," he said.

"The objective should be to establish the primary role of government as regulator of these industries."

Mr Ahern said the policy should provide an opportunity for those with an interest in the enterprises to participate in their success.

"New shareholders would comprise management, employees, customers, suppliers and financial institutions." If such key groups had an interest in the companies, it would be easier to bring about the fundamental changes in them that are required in order for them to be competitive.

The policy would also have the effect of combating the lack of tradition in Ireland for individuals to own shares directly in companies, or be aware of the opportunities that such ownership can confer. It would also allow government to concentrate on what it does best; regulating for the wider public good, Mr Ahern said.

Mr Ahern also said that as part of its plan to create employment, Fianna Fail would introduce accelerated tax depreciation for factory buildings in depressed areas where development land was available.