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Dáil Éireann debate -
Tuesday, 2 Nov 1993

Vol. 435 No. 3

Written Answers. - Financial Times Report.

John Bruton

Question:

23 Mr. J. Bruton asked the Minister for Transport, Energy and Communications if he will make a statement on the accuracy of a report in the Financial Times of 11 October 1993, to the effect that Telecom Éireann has the lowest productivity of 12 European Telecom systems listed, in terms of number of employees per 1,000 lines; the reasons for this; its implications for phone and fax charges here; if this productivity trend is a recent long term development; and if any targets have been set for the future productivity of Irish Telecom services in comparison with competitor countries in Europe.

The report referred to is accurate in relation to Telecom Éireann. It is recognised that Telecom Éireann continues to have a staff surplus even though the index of employees to lines has improved dramatically since vesting day in 1984. Having said that, caution is needed in making comparisons of the type contained in the report. For example, complexities such as whether employees of subsidiaries are included or not or the extent to which contract labour and bought in services are used can have some distorting effect.

Productivity targets are set for Telecom Éireann in the context of rolling five year corporate plans and a further improvement of 50 per cent is targeted by 1999. Considerations such as low population density militate against achieving the lowest ratios achievable elsewhere.

Clearly factors such as lower staff levels and better productivity would inevitably result in relatively lower prices. It should be noted that telephone tariffs have been declining steadily in this country since 1986.

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