asked the Minister for Posts and Telegraphs if he has seen a report (details supplied) that companies supplying telecommunications equipment were found to be guilty of price rigging, and had appropriate fines imposed; if his Department has undertaken any investigation into possible price rigging here with regard to the supply of telecommunications equipment to his Department; and, if not, why.
Ceisteanna—Questions . Oral Answers . - Telecommunications Equipment Supply .
13.
: I have seen this press report which stated that the British Post Office is to be reimbursed an agreed amount by way of a rebate on the price paid for the supply and installation of telephone cable to four British cable manufacturers who had been secretly running a price ring. My Department were aware from earlier press reports going back to 1975 that this matter was under consideration.
My Department invites tenders for telephone cables on an international basis and their experience has been that there is keen competition for these contracts.
: If it pleases the Ceann Comhairle, may I ask a question? Would the Minister be good enough to say whether his Department are actually investigating the contents of the report? That did not come across on his reply.
: This relates to Britain.
: Is the Minister investigating it so far as the implications for this side of the Irish Sea are concerned?
: Even if these particular companies tendered for business here they would have to compete with quite a number of others. It is open to international competition.
: Is there any on-going procedure to monitor value in relation to equipment purchased, to ensure that costs are monitored?
: I think the Deputy will accept that where competition is international—and in most cases a number of companies are invited to tender—the competition is very keen. Therefore, we assume that we get good value.
: Surely there is a case for cross-checking the quotations coming in and finding out if they are in fact cheap, on an on-going basis to avoid any price rigging?
: I refer the Deputy to the reply I gave to Deputy Keating. In Britain evidently only four companies tender, but where we are concerned in many instances a considerable number of companies tender from abroad as well as from home. In those circumstances it would not be possible for the ring to operate in the same way here.
: Is the Minister sure there is no cartel?
: Not in so far as the cable business in this country is concerned.