Vol. 505 No. 4
49 Mr. Broughan asked the Minister for Finance the way in which he will deal with the proceeds of the Telecom Éireann initial public offering; the consideration, if any, given to the use of these funds to establish a dedicated fund or funds for particular purposes; and if he will make a statement on the matter. [13844/99]
No decisions have yet been made by the Government on the use to which the proceeds of the Telecom Éireann initial public offering will be put. Among the options under the consideration are the possible discharge of the Exchequer's liability for the pre-vesting day element of service of former civil servants in the then Department of Posts and Telegraphs who transferred to An Post and Telecom Éireann on 1 January 1984. This liability is being discharged at present on a pay-as-you-go basis.
In terms of the remainder of the funds, these will be taken directly into the Exchequer. I will consider the subsequent use of the proceeds within the overall framework of the Government's budgetary objectives, which were spelt out in the Stability Programme 1999 to 2001, published on budget day. These objectives are the reduction of the debt burden and the preparation of the public finances for long-term challenges, including demographic movements.
