Vol. 429 No. 6
28 Mr. Rabbitte asked the Minister for Transport, Energy and Communications if he intends to support the request of Telecom Éireann for £200 million of EC Structural Funds for the development of telecommunications system, especially in view of the findings of consultants that up to 9,000 jobs could be supported in the economy through proper investment in telecommunications; and if he will make a statement on the matter.
263 Mr. Barry asked the Minister for Transport, Energy and Communications the allocation of Structural Funds which will be made available towards the modernisation and development of the Irish telecommunications structure; if priority will be given to the modernisation of the switching and transmission network; and if he will make a statement on the matter.
I propose to take Questions Nos. 28 and 263 together.
I am aware of the case made by Telecom Éireann for assistance toward the company's capital programme from the Structural Funds under the next programme.
I am also aware of the large investment needed and indeed proposed by Telecom Éireann to ensure that Ireland's telecommunications system remains amongst the most modern in Europe.
Work is well under way on the preparation of a national development plan which will set out the Government's proposals for the use of EC assistance under the next round of Structural Funds. This is being co-ordinated by my colleague, the Minister for Finance, and final decisions as to the level of assistance to be designated for any area and the priority of particular types of projects will depend on the Government's assessment of overall national priorities and the outcome of negotiations with the EC.
The specific question which the Minister was asked is whether he is supporting the case that has been made by Telecom Éireann for the £200 million in Structural Funds. I would like him to answer that.
In the context of the proposals by Telecome Éireann, will the Minister clarify the positon regarding telephone charges and the proposals to increase local charges, particularly in the light a report in the Irish Press today which quotes him as saying there will be no increase in local charges and an official from his Department as stating that the proposals are still in the melting pot? Will the Minister now clarify whether there will be increases in local telephone charges, a reduction in the duration of local telephone calls or any change in the areas covered by local calls?
That is a separate question.
No, it is all part of the same question.
In relation to the relevant supplementary question, of course as Minister for Communications I support the proposal to seek Structural Funds for improvement in our telecommunications system. The final decision on the level of support available will be a matter for the Government in drawing up its priorities when the national development plan is ready.
My question in relation to telephone charges is, indeed, very relevant. The whole submission made by Telecom Éireann is inextricably bound up with the question of charges and the financing of that company. Let me again invite the Minister to tell the House clearly whether or not he intends to permit an increase in local telephone charges. Is he simply avoiding answering the question, from which we can draw our own conclusions?
I am simply avoiding being out of order, even though the Deputy is not prepared to remain in order. I am tying to simply answer supplementaries which are relevant to the question put down not in the Deputy's name but in the name of his leader.
It is of course true that one of the recommendations of the Culliton Report concerns a rebalancing of our telecommunications tariff charges to help our competitiveness in the future. That is something about which submissions have been made by Telecom Éireann. Until such time as I am ready to make a decision on that matter I cannot say anything more. When the decision is taken I will be available to answer all questions in the House and the Deputy will be fully informed.
In view of the Minister's declared intention to recommend that some of the Structural Funds be applied to the updating of the telecommunications system, will he agree that this is in conformity with the Culliton report and therefore it is a matter of priority if we are going to have a knock-on effect on job creation?
I would agree with the Deputy that with technology moving so fast in this area there is a need for continuing investment. Telecom Éireann have invested heavily in the past. We have seen the benefits of that in having one of the most modern telecommunications systems in Europe. We need to stay at the forefront of that if we are to attract the sort of industry and increase the economic activity about which he speaks. I agree with the Deputy on that point.
Will the Minister comment on how his proposal to interfere with pricing charges for telephone calls fits in with the policy of the privatisation of Telecom Éireann where there would be a free market and the company, when it is privatised, would be free to charge whatever it liked?
The privatisation of Telecom Éireann is not on my agenda. In relation to rebalancing proposals, that is something which is important in the context of maintaining, or regaining in many instances, the competitive position of Telecom Éireann vis-à-vis its international competitors to ensure that the maximum amount of traffic is on our telecommunications system and not being leased out to other telecommunications systems which are nearby and, indeed, far afield.
Is the Minister ruling out any possible privatisation of Telecom Éireann?
I am saying it is not on my agenda.
In view of the fact that the Minister is not denying that there will be a 300 per cent increase in local telephone charges, are we to take it that the Government's job creation policy is to be built on the backs of the aged, the lonely and those living alone who depend on the telephone as a means of communication with the outside world?
The Deputy can take it that that will not be the case.
Are we all going to get free telephone calls?
