Dáil Éireann debate -
Wednesday, 19 Jun 1996

Vol. 467 No. 2

Written Answers. - Shareholding in Telecom Éireann.

Róisín Shortall

Question:

161 Ms Shortall asked the Minister for Transport, Energy and Communications in view of the Communication Workers' Union's enthusiastic and proactive involvement in the preparation of Telecom Éireann to manage globalisation and deregulation in the industry, if he will give Telecom Éireann workers a commitment that a decision will be made in principle to permit the employees to purchase a significant equity stake on the basis of fair value, that immediate access will be given to Communication Workers' Union consultants to all financial and other data to permit a formal bid to be constructed and a decision will be made that the staff of the company will be regarded as a third strategic partner and that no deal will be concluded with either TeleDenmark or KPN/Telia that does not specifically provide for the separate negotiation of corporate governance and shareholders rights for the employee stake; and if he will make a statement on the matter. [13049/96]

Minister for Transport, Energy and Communications (Mr. Lowry)

The Government fully recognises the contribution that the employees of Telecom Éireann can make to the future development of the company and its mandate for the negotiation of an equity-based strategic alliance stated that, subject to certain conditions, it was willing to consider setting aside up to 5 per cent of the company's share capital for an employee shareholding scheme.

The alliance process is now entering its final phase. The potential partners involved in the alliance process have indicated their willingness to accept the concept of an employee shareholding scheme and to explore and clarify the contribution that such a scheme can make to the future development of the company.

When a strategic alliance is agreed, it will be possible to look forward to sitting down with employees to discuss what may be possible by way of developments in the longer-term in the interest of all parties involved, in particular the scope and nature of employee shareholding. Arrangements to give effect to this, including access to information, will be made with the unions and its advisers.