Seamus Brennan
Question:3 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the estimated employment implications of the proposals in the report from Telecom Éireann on the partners available to it. [6599/95]
Ceisteanna—Questions. Oral Answers. - Telecom Éireann Report.
The provision of competitive telecommunications services is now generally recognised to be critical to economic development and employment growth in all economies. Finding and building a relationship with a strategic partner may be crucial for Telecom Éireann to meet that objective in Ireland. The development of a strategic partnership will, therefore, have a critical impact on employment both in the general economy and in the telecommunications sector.
I have received a report from Telecom Éireann dealing with future business strategy and the question of strategic partnership. This is now being considered and I hope to be in a position to convey a decision to the company as to the next phase of strategic partner discussions when this consideration is complete. The report is not specific in relation to future employment levels in Telecom Éireann. Clearly any analysis of the strategic partnership question is a multifaceted one involving careful assessment of a number of key criteria. These include: existing investment, underpinned to a large extent by Irish taxpayers, in the telecommunications sector; employment implications of any strategic partnership both for the economy as a whole as well as Telecom Éireann; the future provision of telecommunications infrastructure and services in Ireland which are necessary to support industrial development and underpin the competitive position of Irish goods and services in the international marketplace.
As the Telecom Éireann report contains confidential and commercially sensitive information relating to both the company and other interested parties it is not possible to publish it. This is accepted procedure and any other approach would represent unrealistic practice. Unfortunately, I am not in a position to divulge the contents of the report.
In any future discussion with potential partners, it is clear that maximisation of sustainable employment inside and outside the core business must and will be an important agenda item. It is generally accepted by all observers that the employment issue is just one of a variety of considerations which must come into play in these discussions. Telecommunications in Ireland must not only be competitive in terms of cost, it must meet changing customer needs in what is generally recognised to be a volatile and uncertain market place.
Naturally, while there are employment implications in any strategy for a successful competitive Telecom Éireann in a liberalised market, there are serious consequences for employment in the general economy in not having a fully competitive, national telecommunications company. These will arise in those areas which are most dependent on the highly skilled employment required by industry and services which the Irish labour force is uniquely equipped to exploit.
Obviously there are several considerations and all are addressed in a general way in the report I received which is being studied in the Department.
I could understand the Minister not publishing the report in the case of TEAM Aer Lingus but I do not accept it in this case. I ask him to reconsider publishing this report given that we are talking about a strategic alliance for Telecom Éireann and the future of a major State company. It is about having foreign or other domestic partnerships with Telecom Éireann. How are we and the public to know that some of the options do not include a straight disposal of part of the company? How are we to assess newspaper reports that up to 400 or 500 jobs are at risk in Telecom Éireann if this Government of transparency decides to deal privately behind closed doors with the future ownership and partnership of a major State company? If the report cannot be published in full, the Minister should publish a sufficient part of it to ensure that the House can debate what is a fundamental strategic issue for the country.
The time for dealing with Priority Questions is fast running out. I wish to deal with the remaining Priority Questions. I am sorry that is the position but Members can observe it for themselves.
I will abide by the decision and I will not publish the report for obvious reasons, of which the Deputy is aware. I accept that this is a major decision requiring careful consideration and it will be taken following an exhaustive consultative process. I received a report from the Communications Workers' Union and one from Telecom Éireann. I was impressed by the immense amount of common ground that exists between the union and Telecom Éireann. The reports will be studied in my Department and I will bring forward sugestions to Government on how to proceed. Our position will be made public and it will then be the subject of public debate. There is keen interest by international consortia in the global telecommunications market or being strategically involved with Telecom Éireann. Unlike the previous Government who had side deals with companies I have no preconceived ideas on who should be the strategic partner.
Just secrecy.
The process will begin at the same starting line for each competitor. It will be open and transparent. My concern is to find a strategic partner for Telecom Éireann who can expand, develop and create further opportunities for Telecom Éireann in the home market and, through its alliance with an international partner, on the international scene.
Will the Labour Party see the report?
What about DL?