Dáil Éireann debate -
Tuesday, 18 May 1993

Vol. 430 No. 8

Written Answers. - Telephone Charges.

Mary Harney

Question:

30 Miss Harney asked the Minister for Enterprise and Employment if he has satisfied himself that the changes in charges made by Telecom Éireann will benefit Irish industry, will help to sustain existing jobs and will stimulate job creation in many sectors; and if he will give details of the sectors he expects will benefit most as a result of the new charges.

Minister for Enterprise and Employment (Mr. Quinn)

At present the cost of international telecommunications from Ireland is, on average, 40 per cent higher than that of our major trading competitors in Europe. Under the re-balancing package, all international calls will be reduced by 40 per cent on average. The competitiveness of industry will be enhanced considerably through this rebalancing.

To achieve long term sustainable growth in employment in Ireland, competitive operating costs are essential. As a small export oriented trading nation, telecommunications is clearly a major means of communicating with our potential export markets.

I expect that the reduction in international tariffs will be of particular benefit to the international services and tourism sectors which are particularly dependent on telecommunications for their operations. On a global scale, these sectors continue both to grow significantly, and to be a major source of employment.

Other sectors and activities which, I anticipate, will benefit significantly from the changes in charges include: central reservation centres, consumer service centres, technical and consulting services, European administrative headquarters, research and development services, financial services, and direct marketing and telemarketing.

The rebalanced tariffs will place Ireland in the forefront of the competition for attracting employment from these sectors. The Government will seek to encourage the creation of employment in telecommunications-based services firms, telemarketing and other related areas. The Industrial Development Authority and Telecom Éireann will work together to create an extra 2,000 jobs in such services by 1997.