Proinsias De Rossa
Question:7 Proinsias De Rossa asked the Minister for Transport, Energy and Communications if he will confirm that Telecom Éireann will be retained in full public ownership; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Telecom Éireann Ownership.
The privatisation of Telecom Éireann, in whole or in part, is not being considered by me, my Department or the Government and I have not entered into discussions with any party on this issue.
Will the Minister state why the Taoiseach was talking to Lord Young, the chairman of Cable and Wireless, last year in relation to Telecom Éireann, if any proposals emerged and if they are under consideration by the Government.
Presumably the reason the Taoiseach spoke to Lord Young about Telecom Éireann was that the subject came up in a conversation between them. No proposals for the privatisation of Telecom Éireann arose during those discussions. Whenever a politician has contact with anyone a whole range of scenarios is assumed. The Taoiseach meets many people in the course of his work. There are no proposals before me and I did not enter into any on behalf of the Government. I was not instructed by any member of the Government, the Taoiseach included, to enter into any such negotiations.
(Limerick-East): While Telecom Éireann is a large company in the Irish context, it is a rather small telecommunications company in the European context. Would the Minister agree that the development of our telecommunications system in the nineties will require partnership to joint venture relationships between Telecom and other telephone companies in other EC states? Would he inform the House what contacts have taken place with, for example, the French telephone company, to consider if joint venture arrangements can be put in place to improve the balance sheet of Bord Telecom and to ensure a better domestic and international service for everybody?
I refer the Deputy to the Programme for Government, which states clearly that in relation to these issues questions of joint venture and strategic alliance should be considered. It has been stated on a number of occasions that Telecom Éireann is in constant contact with other utilities in the telecommunications area to seek out business opportunities. These include the French telephone company and others. There are no specific proposals before me from any company at present in relation to joint venture arrangements or strategic alliances, but discussions are ongoing. The board of Telecom Éireann is kept up to date on issues of strategic importance which arise in that context.
We are aware there have been discussions between Telecom and Cable and Wireless in relation to joint ventures. Would the Minister indicate if Cable and Wireless or any other company has made any other approach to him in relation to any possible investment in Telecom or in relation to any joint venture?
Any such contacts with the Department are referred to the semi-State body concerned which is responsible for the operational day to day affairs of the company. It would consider in detail any business proposals put to them. This would be the case in relation to any such arrangement between Cable and Wireless and Telecom. There are no proposals for such an arrangement between Telecom and this company or any other company at present.
Would the Minister agree that while he may have no proposals for any change in ownership of Telecom in whole or in part, such proposals would be desirable? It would be useful if part of Telecom Éireann was privately owned. Would he agree that we should strive to move away from the virtual monopoly position enjoyed by Telecom at present?
I cannot comment or indicate any opinion in the absence of any specific proposals before me. However, I refer the Deputy to the Programme for Government, which outlines the broad policy position of the Government in this area. It provides, that should joint ventures and strategic alliances arise they will be considered on their individual merits.
I am concerned about the approaches made to Telecom. My question related to what approaches had been made by companies such as Cable and Wirless in relation to Telecom. I am aware of the procedure that the detailed discussions involved Telecom. However, we should be told what approaches have been made to the Department and what companies are involved. The Minister should tell the House that information?
Cable and Wireless or any other company who might have an interest would in the first instance approach Telecom Éireann.
Did they?
No. Cable and Wireless did not approach my Department before speaking to anybody else about this.
Did they approach your Department at all?
No.