The time is now ripe for the Minister for Tourism, Transport and Communications to inform the House what her views are in regard to the privatisation of Telecom Éireann. It is essential that our citizens be publicly aware of whatever are the Minister's intentions in this respect.
An argument advanced in favour of public enterprise is that a purely commercial approach to the provision of some services would inhibit the initiation or continued provision of certain services of genuine social benefit. A quite separate case for public ownership may exist in relation to services that are natural monopolies, for example, those that may utilise a distribution network, the duplication of which would be absurdly costly.
Telecom Éireann are a special company, being Ireland's largest employer, the second largest investor in our economy and who, under public ownership, have been transformed into one of the leading telecommunications companies worldwide. The present position of Telecom Éireann would be greatly endangered from the social and jobs aspects if they were privatised, particularly when one realises that their return to the Exchequer last year was of the order of £40 million. Furthermore it is evident that Telecom Éireann services their own debt of a £1 billion loan and do not ask the State to provide any contribution. It is also clear that if privatisation of this company were allowed to proceed there would be grave fears for the continuation of the present rate of service to outlying areas nationwide. It is evident that it would be those outlying areas that would suffer most as a result of the company's privatisation. For example, I could not envisage circumstances in which an individual old age pensioner, living alone in a desolate rural area, would have a telephone installed for £120 if a private company were to operate the services of Telecom Éireann. It is very evident that if Telecom Éireann were privatised it would be the fat cats who would make all the gains, leaving ordinary citizens to endure all the losses and cutbacks.
We have now in this country one of the most modern telecommunications networks worldwide consequent on the huge investment of public funds over the past ten years. Indeed it is not unreasonable to contend that, in order to effect that investment, over that period our people went without other facilities, such as hospitals and schools.
Moreover, it is evident that the concept of privatisation over the past decade has been almost uncritically asserted by Government and public alike. It is evident also that the staff of Telecom Éireann played a major part in the viability of the company, having made an enormous contribution to the present state of the company. Experience in other countries, particularly in the United Kingdom, has demonstrated that privatisation brings heavy job losses, inferior conditions of employment, higher costs and inferior quality services for the public, especially for those in outlying rural areas.
Telecom Éireann is important to us not merely for the services they provide, the profit they make, the 15,000 people they employ but also for its symbolic importance, in that it has been one of the few enterprises that has really worked here in recent years.
I would appeal to the Minister to be cautious and study the enormous difficulties that would arise for people in rural areas dependent on the diligent, trustworthy staff who at present provide them with a service second to none.