asked the Minister for Communications the latest figures available on the comparative costs of local and of trunk calls in Ireland compared with other EC countries; and the extent to which he expects this discrepancy to have been eliminated by the year 1992.
Ceisteanna — Questions. Oral Answers. - Telephone Call Costs.
8.
The latest figures available on the cost of local and trunk calls in Ireland compared with other EC countries are contained in a tabular statement which I propose to circulate in the Official Report. However, I should point out that a simple comparison of the cost of local and trunk call charges between one country and another is seldom straightforward because of the variety and complexity of pricing structures and for other reasons.
For example, local calls in Ireland are not timed. Local calls in all other EC countries, with the exception of Greece and Luxembourg, are timed. Where local calls are timed, the cost of the call increases sharply as duration increases. In addition, local calls in Ireland cover a far larger area than any other country. In fact, those countries with the cheapest local call rates also have the smallest local call areas. Also comparative costs are misleading without taking tax into account. There is 19 per cent VAT on calls in Belgium, no tax in Luxembourg or Ireland, Portugal has 8 per cent and Denmark's charges include 22 per cent tax.
It is impossible to speculate on how charges in Ireland will compare with charges in other EC countries by 1992 as so much will depend on how other charges move in relation to Ireland's in the meantime. In fact, international calls from Ireland were reduced by 20 per cent — 30 per cent from 1 October and I am advised that if you take into account all of the factors relevant to charges, overall telecommunications charges in Ireland probably fall into the middle range in the EC member states.
The following is the tabular statement:
Comparison of costs of trunk and local telephone calls in Ireland and in other EC countries
|
Country |
Local call |
Trunk call over 100 km |
||
|
3 Mins. |
5 Mins. |
Peak |
Off-peak |
|
|
pence |
pence |
£ |
£ |
|
|
Belgium |
10.57 |
10.57 |
0.48 |
0.24 |
|
Denmark |
6.03 |
18.09 |
0.24 |
0.12 |
|
France |
7.99 |
7.99 |
1.03 |
0.51 |
|
Germany (F.R.) |
8.56 |
8.56 |
1.28 |
0.40 |
|
Greece |
1.92* |
1.92* |
0.64 |
0.38 |
|
Ireland |
11.17* |
11.17* |
1.01 |
0.67 |
|
Italy |
14.98 |
14.98 |
1.25 |
0.44 |
|
Luxembourg |
8.88* |
8.88* |
0.09 |
0.09 |
|
Netherlands |
4.95 |
4.95 |
0.19 |
0.09 |
|
Portugal |
3.53 |
3.53 |
0.79 |
0.53 |
|
Spain |
2.00 |
4.00 |
0.72 |
0.33 |
|
UK |
17.77 |
25.30 |
0.59 |
0.24 |
*Untimed.
Will the Minister confirm that, comparing Ireland with a simple average on these calls, we are about 60 per cent more expensive than other member states? The Minister has said that it is impossible to speculate on how we will stand in 1992 and I should like to know if he accepts that an efficient telecommunications service and low charges will be very critical to our survival after 1992? Will the Minister say if Telecom Éireann have informed him of the measures they will be taking to deal with their present discrepancy?
I have tried to explain in my reply the difficulty in dealing with this issue. The Deputy is misrepresenting the position when he says that we are 60 per cent more expensive than other countries. The matter is not as simple as that. The Deputy's question referred to local calls but in Ireland they are not timed while in other EC countries they are. That has a major effect on costs and, as a result, the statement that we are 60 per cent more expensive does not hold up. In fact, taking into account all of the factors relevant to the charges, overall telecommunications charges in Ireland are probably in the middle range in member states. We could argue all day about this but the matter is not as simple as the Deputy tries to portray. I should like to tell the Deputy that Telecom Éireann are making major advances in their capital programme and introducing the most sophisticated network available in Europe. With the exception of France we are ahead of most other countries. It is too far down the road to say what the position will be in 1992 but the Deputy can be assured that all steps will be taken to ensure that we move from the middle to the top of the class.
The time has come to deal with questions to the Minister for Energy. Indeed, three minutes of that time has passed.