asked the Minister for Communications whether he has satisfied himself with the cost of telephone charges compared to the rest of the EC; and if he has sought information from Telecom Éireann on the target to be achieved in reducing the differential with European prices during the tenure of their current corporate plan.
Written Answers. - Telephone Charges.
13.
I am aware that telephone charges are generally higher in Ireland than in most other EC countries. Being a country with a very low population density and a low level of telephone development, the cost of distributing telecommunications services is high. Telecom Éireann, in their current corporate plan, are engaged on a programme of rebalancing the charge structure which they inherited in 1984 with a view to reducing international charges and so improving their competitiveness on key routes. However, the company are required, under section 15(1) of the Postal and Telecommunications Services Bill, 1983, to keep their charges for services at the minimum rates consistent with meeting approved financial targets and to generate sufficient revenue to meet all charges properly chargeable to revenue account, generate a reasonable proportion of capital needs, remunerate capital and repay borrowings.
Arising from their corporate plan targets, I am currently examining a restructuring proposal which the company have submitted to me which includes reductions in some international charges.