Vol. 512 No. 3
187 Mr. Durkan asked the Minister for Finance the proposed use, if any, for the expected £1.5 billion claw-back arising from the recent disposal of shareholdings in Eircom; and if he will make a statement on the matter. [26242/99]
188 Mr. Durkan asked the Minister for Finance if the £1.5 billion claw-back arising from the disposal of shareholding in Eircom will go to the Exchequer, Eircom, the shareholders or the consumers; and if he will make a statement on the matter. [26245/99]
I propose to take Questions Nos. 187 and 188 together.
The proceeds from the sale of shares in Telecom Éireann will be paid into the Exchequer. It should be noted that the proceeds from the claw-back are projected to be £1.16 billion and not £1.5 billion. I understand that the record of the Adjournment debate of 30 November 1999 has been amended accordingly.
As set out in the recently published Estimates of Receipts and Expenditure for the year ending 31 December 2000 – the White Paper – I intend that these proceeds will be allocated to the partial pre-funding of future social welfare and public service pension liabilities. The figure quoted in the White Paper was £1.785 billion, which includes the 1% of GNP contribution. These provisions are included in the arithmetic underlying Budget 2000. This provision was made in accordance with the Government's stated objective of preparing the public finances now for longer-term demographic challenges which will arise from the ageing of the population.
