I wish to share my time with Deputy Briscoe.
Adjournment Debate. - Telecom Éireann Revised Tariff System Proposals.
Is that satisfactory? Agreed.
To date, we have had continued rumours and speculation regarding the decision of Telecom Éireann to increase telephone charges. The Minister for Tourism, Transport and Communications has remained coy and silent on this issue. I now feel it is time he clarified the position and put an end to these rumours.
The speculation suggests that Telecom has decided to introduce a wide range of increases in telephone charges which will affect all sections of our community. The proposed increase in local call charges will have a major impact on the lives of families, particularly the elderly, the unemployed, and the disabled. This increase will also drastically curtail the activities of voluntary agencies, such as the Samaritans, Alone and Childline whose essential work relies heavily on the communication process. These voluntary organisations which have filled large gaps in our society — in many respects these gaps are due to Government cutbacks — will find themselves in an intolerable position.
It must also be remembered that the business world will also feel the negative consequences of the alleged charge increases; this may manifest itself in the loss of jobs in some cases. None of the indications suggest that these charges will mean any improvement to people living in rural areas.
Bord Telecom are a successful profitable company and the speculated charge increases will further increase this profitability. It has been suggested that the projected profits for Telecom Éireann in 1991 will be in the region of £100 million. Is this a case of fattening and increasing the attractiveness of Telecom for eventual privatisation? We, in the Labour Party, want answers from the Minister for Tourism, Transport and Communications. Will he clarify this issue? Are the proposed user charge increases a prelude to the privatisation of Telecom, and will he inform the House how these cost structures will impinge on the ordinary people? It has been suggested that Telecom Éireann intend to reduce trunk call charges for rural areas. This is a proposal we would welcome.
Telecom Éireann should immediately reduce the rental charge by 10 per cent and increase the connection rate. Many people are now excluded because of the outlandish rental charge and if there was a 10 per cent reduction I have no doubt it would increase the number of subscribers. The rental charge is a fixed payment, irrespective of use, and while in theory this is set to recover capital expenditure, current and projected profits will allow for a reduction which will benefit those on moderate incomes most. If Telecom are concerned about reducing the basic cost of the service I suggest this is the area that should be given first priority.
Telecom should not introduce a differential tariff structure for local calls. This is a policy which a private operator would adopt. We must bear in mind that Telecom Éireann is not a private entity, it was created for the Irish people by the taxpayer and they should reap the benefits. I would now ask the Government to come clean on this matter. There has been much speculation, jobs are being threatened and it is in the interests of everybody that we put an end to the rumours once and for all. Perhaps the Minister in his reply will give me some of the details I have requested.
I appreciate Deputy O'Sullivan giving me some of his time. I support his request to the Minister. The people I know are totally opposed to the timing of local calls and I have had many representations on that issue. I would urge the Minister to listen very carefully. When people telephone the ESB to query their bills or the Department of Social Welfare, they may be left waiting for some time.
Because of the number of telephones in the country the income generated should be sufficient to lower the cost of local and international calls rather than increasing them. Without putting too fine an edge on it, I want to tell the Minister that any change in the system of local calls in regard to timing will be resented by thousands of telephone users. I believe that if given the choice between increasing the cost of a local call by 1p and a system where the local calls were timed — I am not advocating this — people would opt for the 1p increase, although I do not see any need for an increase in telephone charges.
I urge the Minister to take very seriously the many representations which have already come to me from people with young families. When they are out the children telephone each other with the result that their telephone bills will be enormous and they will suffer great hardship. It is most important that we have a telephone service not only for the elderly living alone but in order that people can communicate with each other. Again, I thank Deputy O'Sullivan for allowing me some of his time.
As indicated by the then Minister for Communications in response to parliamentary questions on 30 January and 5 February this year, Telecom Éireann have submitted proposals for a revised tariff system for certain telephone charges and these proposals are at present being examined by the Minister for Tourism, Transport and Communications.
It would not be appropriate for me to go into details of these proposals while they are still under consideration. However, the Deputies who have raised this question can be assured that the social and economic consequences of Telecom Éireann's proposals will be taken into account by the Minister before a final decision is taken.
It is hoped that this decision will be taken shortly.