Vol. 396 No. 3
24 Mr. Rabbitte asked the Minister for Communications the present position regarding the proposed sale by RTE of Cablelink; if a bid has been received by RTE from Telecom Éireann for all or part of the RTE shareholding in Cablelink; and if he will make a statement on the matter.
My consent has been sought to a proposal whereby RTE and their co-shareholder, Allied Combined Trust Limited, would dispose of shares in Cablelink to Bord Telecom Éireann, the end result of which would be that RTE would have a 40 per cent shareholding and Bord Telecom Éireann would have a 60 per cent share in the company. I am considering the proposal.
Can the Minister indicate whether he will be happy with this arrangement and if it is in keeping with Government policy to promote the involvement of the State sector in this important area?
This matter is being considered. It has also to be considered by the Department of Industry and Commerce. It has been notified to them, in accordance with the Mergers, Takeovers and Monopolies Control Act, 1978. While it is being looked at I am reluctant to comment but the Deputy will be well aware of my own personal views in relation to this particular transaction.
In view of our earlier discussion about the importance of Telecom Éireann as a profit making organisation to expand and absorb some of its overstaffing, would the Minister consider this to be a useful diversification for that company if given the opportunity?
Obviously.
If they are going to be allowed to spend £10 million on the Johnston, Mooney site there will not be much profit for anybody.
