Vol. 404 No. 6
21 Mr. Currie asked the Minister for Communications the action he intends to take to ensure that, following the completion of the internal market next year, telephone costs both internal and international will not place Irish business at a disadvantage, in relation to our European partners; and if he will make a statement on the matter.
Under section 70 of the Postal and Telecommunications Services Act 1983, the initiative regarding changes in telephone charges rests with Bord Telecom Éireann. The same section provides that the company shall not increase any charge without my concurrence.
As I indicated in my reply to a Dáil Question on 30 January 1991, Telecom Éireann have submitted to my Department proposals for the construction of a more equitable, balanced charging system than exists at the moment and my Department are at present examining these proposals.
It would not be appropriate for me to go into details of these proposals but an announcement will be made about them by Telecom Éireann in due course.
I assume the Minister's reply relates to Question No. 21 and not to a later question. Question No. 21 relates to the effects on our business internationally. Is he aware that, according to a recent OECD report on a number of charges and different ways of approaching them, internal telephone charges here are 22 per cent higher than in Germany, 45 per cent higher than in the UK, 119 per cent higher than in Belgium and a colossal 226 per cent, over three times, the charges in the Netherlands and that the situation is almost similar in relation to international charges? Would he not accept that this adds a substantial charge to the costs for our businessmen who are trying to compete with member states in the European Community? Finally, does he intend to place, at an early stage, a greater charge on telephone consumers because of the 2.5 per cent extra VAT charge announced in the budget? Does he intend to instruct Telecom Éireann to carry those charges or will those additional charges be imposed on the consumers?
I would not like to comment on the individual percentage differences, country by country, which the Deputy read out.
It is right.
I would accept that there is an unfortunate difference between ourselves and some of our competitors. That is why Telecom Éireann have been striving over the last number of years not only to hold prices at their present level but actually to reduce them further. That is why the Government, in association with Telecom Éireann, have put forward a programme which has resulted in an investment of £1.7 billion over the last number of years to make our telephone system the best in Europe, with perhaps the exception of France. The Deputy will be delighted to hear that the new proposals from Telecom will mean reductions of approximately £37 million to telephone charges across the country — a reduction of 7 per cent — which will go to making us even more competitive in the period ahead.
A brief question Deputy Currie please.
Does the Minister intend that the 2.5 per cent VAT charge announced in the budget will be passed on to the consumer? Secondly, in relation to what the Minister said in regard to the reduction in prices by Telecom Éireann in recent years, is he aware that in the same period Belgian charges fell by 35 per cent, charges in Britain fell by 50 per cent and that in France, Germany and the Netherlands charges fell by an approximate 60 per cent? Surely, with the advanced telephone technology and the greater number of telephones being used charges should have been reduced in line with our competitors?
The Deputy should have regard to the time factor involved in dealing with priority questions.
As I said to the Deputy — I am sure he will be delighted to hear it — there is a proposal for a reduction of about 7 per cent across the board involving over £37 million. That will be of considerable benefit to our telephone users and in particular to our business community.
