Ivan Yates
Question:29 Mr. Yates asked the Minister for Public Enterprise the deadline, if any, she has placed on the talks and discussions regarding the ESOP deal for Telecom Éireann. [18644/97]
Written Answers. - Share Ownership Schemes.
Dick Spring
Question:33 Mr. Spring asked the Minister for Public Enterprise if she has reached agreement with Telecom Éireann trade unions on the transfer of 14.9 per cent of the shares of the company to the employees of the company; and if she will make a statement on the matter. [18974/97]
Pat Rabbitte
Question:46 Mr. Rabbitte asked the Minister for Public Enterprise the current position regarding her discussions with Telecom employees and a company (details supplied) regarding the sale of further shares to employees; when these discussions will be concluded; and if she will make a statement on the matter. [18930/97]
Ivan Yates
Question:126 Mr. Yates asked the Minister for Public Enterprise the discussions, if any, which have taken place in relation to the negotiations with the relevant trade unions in relation to the employee share ownership plan for Telecom Éireann; and the valuation, if any, the Government has placed on the transformation deal negotiated between the management and unions of Telecom Éireann and the value of Telecom Éireann shares. [18574/97]
Ivan Yates
Question:127 Mr. Yates asked the Minister for Public Enterprise the Government's approach to the valuation process in establishing the fair value of the shareholding in Telecom Éireann in relation to the employee shareholding plan with Telecom Éireann. [18575/97]
I propose to take Questions Nos. 29, 33, 46, 126 and 127 together.
As I indicated to the House on a previous occasion, the Government is committed to the conclusion of an Employee Share Ownership Plan in Telecom Éireann in the spirit of social partnership and consensus.
The Government is prepared to make available up to 5 per cent of the company's equity from the State's shareholding in return for the verified implementation of restructuring, specified cost reduction and change within the company. The Government is also open to practical and feasible proposals by the employees in Telecom Éireann to bring their total shareholding in the company up to 14.9 per cent in return for cash payment to the Exchequer on transfer at a fair price when it is satisfied that this will assist the future development of the company and that the conditions relating to the initial shareholding of up to 5 per cent are satisfactory. The sale of any shareholding beyond 5 per cent to the employees will require the consent of the strategic partners.
I have been having discussions with representatives of KPN-Telia — the State's strategic partner in Telecom Éireann — the company and the unions with a view to determining a framework within which the negotiations on an employee shareholding scheme can be re-started. In particular, I have recently met the unions for a full presentation from them and their financial advisers of their case in support of an employee share ownership plan (ESOP).
My Department is in the process of briefing financial consultants to provide expert advice in relation to developing an acceptable ESOP in Telecom Éireann. A valuation of the transformation plan negotiated between the management and unions in Telecom Éireann and a valuation of the company for the purpose of determining a fair price for the shares will be among the issues being addressed by the consultants. They have also been in contact with the financial advisers to the unions and I expect these discussions to continue.
I have not set down any specific deadlines for the conclusion of an employee share ownership plan (ESOP) for Telecom Éireann. The negotiations among the parties must be allowed to take their course but obviously I am anxious to see an early agreement.