The Deputy will be pleased to note that the last phrase of his question is redundant in that no major strike is looming. I am pleased that issue has been resolved.
On the issue of privatisation, I would refer the Deputy to section 21 of the Government's programme for renewal, which clearly states that State assets will not be sold, except where it protects employment and is in the long-term strategic interest of the company and its stakeholders. The programme also gives a commitment to the retention of a majority State ownership in these companies and to the encouragement of opportunities for expansion to utilise the banks of skills in those companies.
With the exception of the proposed Telecom Éireann strategic alliance involving the sale of up to 35 per cent of the company, there are no plans to embark on a similar exercise in any of the other State companies under my control.
As regards the views attributed to the chief executive of Telecom Éireann regarding the part flotation of the company, the chief executive seems to have in mind the possible flotation of all or part of the 15 per cent shareholding which the strategic partner has an option to purchase in three years' time, together with an entitlement to call for a subsequent public offering of all or part of such shares. Such flotation, if it occurs, would be the basis for valuing all the shares sold to the alliance partners and determining the final payment for such shares.
It would be a matter for the Government to decide if such a public offering included any of the Government's own shares, having regard to the provisions in the Telecommunications (Miscellaneous Provisions) Bill, 1996, to retain a majority shareholding.
In relation to the matter of general policy for State business, State bodies, as commercial companies, have to face dramatic challenges in an increasingly competitive environment. Furthermore, these commercial challenges will intensify over the coming years. In facing such challenges, I am concerned to ensure that the State companies manage their operations in the best interests of employees, taxpayers and most importantly, consumers. In short, I will be looking for State companies to become increasingly competitive, commercially orientated and customer focused.
In relation to the Deputy's specific reference to Córas Iompair Éireann, with effect from 1997 it is proposed to replace the existing State subvention for socially necessary, noncommercial services with public service contracts which will be transparent, objective and performance-based. It is clear from recent CIÉ financial results that the company's costs are very much out of line with its ability to generate revenue. This issue needs to be addressed urgently by both management and unions within a fixed timeframe. This is essential if the company is to be in a position to respond to increasing competition and EU-driven market liberalisation.
