asked the Minister for Communications if he will outline the financial contribution made by Telecom Éireann to the Exchequer since the vesting day in 1984 and the expected contribution agreed up to 1989.
Ceisteanna—Questions. Oral Answers. - Telecom Éireann Exchequer Contribution.
1.
Payments into the Exchequer since vesting day amount to £192,858,534 including special payments of £104,425,000 under arrangements agreed with the company. In the period up to 1989 the company will make further payments totalling £130,325,623, including special payments of £103,702,767.
The company will receive full credit for these special payments according as they are made, the payments being fully allowable in the capital balance for the purpose of calculating interest chargeable. In addition after 1 December 1987, these payments will be allowable against interest payable.
Essentially, the cash receipts from revenue arising from the Exchequer debt, payable over a 15 year period, have been condensed into a four year period with full allowance being given to the company for making the early payments.
Can the Minister say if the present payments are in keeping with the statements in the now discredited document, Building on Reality 1985-87? How do the figures compare?
The figures are largely in line with what was planned in the national plan. A very amicable agreement has been reached with Bord Telecom Éireann to meet those targets by way of effective debt rescheduling or bringing forward debt repayments which turns out to be to the advantage of the board.
Is the Minister aware that Telecom Éireann had to resort to borrowing to support the Government's excessive demands on them?
On the contrary, Telecom Éireann are borrowing to repay debts. They have been borrowing for the past two years which they were expected to do as part of the regime set out for them by this Government and by previous Governments. All they are being asked to do is to reply that debt a bit earlier. As it turns out, the schedule of debt repayments works out largely to the advantage of the company.
Is it the Minister's case that these payments are not inhibiting development in the company?
I can assure the Deputy that the developments in Telecom Éireann are very encouraging indeed. The results for the past year, which will be published shortly, will show a significantly better result than was forecast. The portents at the moment are that the company will reach profitability much sooner than expected. That is because of a number of factors, including volume growth, but it has also been helped by international developments in relation to exchange rates, interest rates and inflation.
Can the Minister state when he expects charges will be reduced as a result of the board's activities?
I agree that charges are too high. I have done everything possible in the past three and a half years since I became Minister to keep charges to an absolute minimum. There have been only two increases and they were way below the rate of inflation as compared with the previous five years when there were very steep increases in telecommunications charges which at the time were justified because of the enormous investment by the State in the accelerated capital development programme. It is to be hoped, once the bulk of that investment has been made and the rewards are reaped from that very wise investment — my predecessors deserve credit for that — that we would get to a situation where we will have stability in telecommunications prices. There have been some reductions this year in certain telecommunication charges. I hope this will be seen as a welcome beginning.