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Seanad Éireann debate -
Tuesday, 23 Mar 1999

Vol. 158 No. 14

Order of Business.

The Order of Business is item 1, Second Stage. The contributions of each spokesperson will not exceed 30 minutes and every other Senator will not exceed 20 minutes. Senators may share time.

The Order of Business is agreed in principle. As I have not been able to consult my party's spokesperson on whether 30 minutes will be sufficient, perhaps we could build in a little flexibility if it is not enough.

I wish to refer to the extraordinary debacle which is taking place over the appointment of a chairman of Telecom Éireann. We were told Mr. Brian Thompson was appointed because of his unparallelled expertise in the telecommunications sector but he has resigned after only six weeks. This raises very serious questions about what he told the Minister of his future plans or whether the Minister made sufficient inquiries. Unfortunately, we are now faced with this major embarrassment at a crucial stage. There is also a potential conflict of interest because he will leave the company with very confidential information. What measures will be put in place to deal with this matter?

A replacement for Mr. Thompson is an equally important issue. We were told that the reason he was appointed was his unparallelled experience in this area. The new chairman designate, Mr. Ray MacSharry, is an excellent person and someone for whom all parties have the highest regard but he does not have any expertise in telecommunications, apart from spending six weeks on the board of the company. Yet Mr. Ron Bolger, who was chairman of this company for six years and has experience of this sector, was not reappointed to the role. There is something very strange about this. The Minister is now being hung by the very words she issued with a great flurry of trumpets over six weeks ago. There are questions to be answered and I would like to debate the matter.

We need to have a debate on the future of the European Commission. There has been a great deal of talk about the democratic deficit in Europe. Surely, at this stage, when the Commission is being reshaped, the views of members of parliaments across the Community should at least be heard. I ask the Leader to make time available to debate the issue.

May I draw the attention of the Leader to the excellent and ground-breaking report of the Ombudsman? I ask him to arrange for a debate on the matter after Easter. Important issues were raised in the report and we would all like to have them ventilated further.

I ask for the advice of the Cathaoirleach to raise an issue later in the week regarding the disturbing case raised in The Irish Times of last Saturday concerning charges of racism made against employees of Delta Security. This case resembles the recent Lawrence case in England. I gather there are legal sensitivities, but it is important that we stamp out practices such as this. I seek the Cathaoirleach's advice on how to raise the matter. I compliment my colleague the Lord Mayor, Senator Joe Doyle, on the report he launched and the plea he made yesterday for racial harmony in the city. This is an excellent document; perhaps there will be an opportunity to discuss it later in the House.

Finally, has the Leader, information for me about former Superintendent Geary? I raised this matter a couple of weeks ago. I know Senator Rory Kiely has an interest in the matter and there appears to be a certain amount of backsliding going on at present; perhaps a deep seated departmental veto is reasserting itself. The simple view of Members of this House is that if an injustice was done 70 years ago, it does not matter; all of us would like to see this case reopened in the lifetime of former Superintendent Geary.

I agree with all the issues raised by Senator Manning. I will not rehearse them but I ask the Leader for a debate on two issues. The first relates to asylum seekers. I, too, applaud the initiative taken by the Lord Mayor, who is a Member of this House, together with Dublin Corporation and the Eastern Health Board, towards the integration of asylum seekers in the city of Dublin. No doubt this can be a model for other cities. It is very alarming that approximately 90 per cent of asylum seekers are refused refugee status. When the present Minister for Justice, Equality and Law Reform came to power close to 70 per cent of asylum seekers were being accepted. Surely the profile of asylum seekers has not changed that dramatically in less than two years. Clearly there needs to be a debate on this matter. There are other issues which need to be considered – the backlog of 7,000 asylum seekers, the question of work, which has not been addressed, and their location in the inner city where there is a lot of competition for State resources and housing. Because of this concentration, a great deal of racism and xenophobia seems to be developing. All these issues need to be addressed and the Lord Mayor's initiative would be an ideal focus to have a debate on the issue. The Minister for Justice, Equality and Law Reform should come to this House to explain what is happening in his Department.

I support Senator Manning's call for a debate on the Telecom debacle. It is outrageous that the appointment of Brian Thompson should have taken place with such a flurry of trumpets and, six weeks later he has resigned. Four members of the then board were forced to resign by the Minister for Public Enterprise on the basis that this move would be the saviour of the company as it approached privatisation and flotation. Now Mr. Thompson has resigned, no explanation has been given and a retired politician – not a businessman or someone with expertise in this area – Mr. Ray MacSharry is bailing out the Minister and her privatisation policy. We need to have a full debate on this issue.

We also need to have a debate on the European Commission. This issue is exercising the minds of everybody in the country. What is happening with our ex Commissioner who has resigned? What role is he going to play in the future of the negotiations in relation to Objective One status, Objective One in transition, the Structural Funds and the Cohesion Funds? We want to let our views be heard on the role of the Parliament. All of these issues deserve to be debated in the very near future.

I would like to pay tribute to the Minister, Deputy O'Rourke, on the way she is handling her portfolio. She appointed a very good man. Mr. Ray MacSharry confounded his critics in every job he did. He was criticised for decisions made during the GATT negotiations but when a new team took over they did not change one dot or one comma of the deal he had negotiated. This proves the calibre of the man. I have no doubt he will do Bord Telecom and Ireland proud.

Why did the Minister not appoint him six weeks ago?

Mr. MacSharry is a decent man. He carried out every function with distinction and he will do the same on this occasion.

He is bailing out the Minister.

I would like to refer to the extraordinary debacle of our application for Objective One status. I am particularly concerned for the farmers in south Kerry and in other parts of the country where there are vast tracts which are classified as severely handicapped and disadvantaged. They are going to suffer a loss in income. I am calling on the Leader to give an assurance to this House today, that the Government will match what is required so that these people do not suffer any further loss of income.

The Tánaiste was in Kerry yesterday and, in a manner of speaking, she stood me up. She explained that she had to take a transatlantic call and that a Cabinet meeting to discuss the Commission and the appointment of the new Commissioner arranged for today had been rescheduled for yesterday. However, on my way to Dublin this morning I heard her say on Radio Kerry in an interview recorded yesterday that there will be no special funds for any county. I want to hear from the Leader how we are going to bridge that gap particularly as the Taoiseach said on the record when we were under threat some time ago, that Kerry and Clare were an integral part of Ireland's application. Yet within an hour in a meeting with Mr. Schröder the Prime Minister of Germany, he folded, and we did not get explanation.

This morning I heard the sad news that we are losing 50 jobs in Transmould Limited. What the Tánaiste said yesterday about Pretty Polly unfor tunately seems to be just so much more window dressing and pie in the sky. She hopes for something by the summer, but we believed an announcement made over 12 months ago but it was totally false. I am calling on the Leader to establish quickly with the Government what will be done for the people who are an integral part of our application and who are now left out in the cold.

In light of the issues that have arisen regarding Telecom Éireann, there would be ample opportunity to debate these issues on Thursday and Friday. May I say that the Minister has nothing to apologise for in choosing Mr. Brian Thompson. He was renowned as a world expert in telecommunications with vast international experience. He has done a phenomenally good job in the brief period during which he chaired the advisory sub-committee which reported to the Minister in November. This occurred in circumstances which were totally unanticipated even by the wisest owls in political and commercial life here or in the global business world.

Nobody could have anticipated what developed. The Minister only learned of it last Friday and she acted upon it immediately. I want to rebut the allegations because, subsequent to that, the Minister immediately set up a committee to investigate the matter. Once she had established that there was even a tenuous conflict of interest she took action immediately. If that is not efficiency, I do not know what is.

As regards Mr. Ray MacSharry, we make no apologies. I find the Labour Party's references to cronyism rather rich. We only have to look back to 1992 when cronyism reigned supreme.

Fianna Fáil was in Government in 1992.

In Ray MacSharry, Ireland will be proud to have a chairman of Telecom Éireann who will effectively bring the company's services into the next century.

I support the request for a debate on the democratic process in Europe. The subject is a worthy one and this House will have much to add in stimulating such a debate. It is important for both the Dáil and Seanad to have debates on the European democratic system, including the European Commission.

I ask the Leader to arrange for a debate on the recent ESRI report which has been transmitted to the Government. The report contains important recommendations for the Government relating to investment and the continuous firm growth in the economy. I note that the report contains certain recommendations on the development of infrastructure, housing and other areas where local funding can be raised. The report recommends that parts of the country's rail network, which are not as commercially viable as others, should be discontinued. The recommendation to the Government is not to continue with that investment. In my view, however, that is contrary to the Government's committed position as outlined in the recent announcement by the Minister for Public Enterprise. The matter is worthy of a debate and I would certainly not support that recommendation. The House should discuss the ESRI report's recommendations.

Senators Manning, Farrell, Liam Fitzgerald and Costello expressed their views on the resignation of Mr. Brian Thompson as chairman of Telecom Éireann. I also wish to compliment Mr. Thompson for his contribution. I congratulate the Minister for dealing with the matter so quickly. Because things are happening so fast in Ireland, particularly in the financial world, and the window of opportunity is there, I am certain the Minister acted correctly. I am confident of Mr. Ray MacSharry's ability. In 1987, he was Minister for Finance in what were probably the worst economic circumstances this country has ever experienced. He excelled in the post and following that he became our European Commissioner.

The Government and the country are fortunate to have a person of Mr. MacSharry's calibre to accept this job. He will be ably assisted by Mr. Ron Bolger and the former Tánaiste, Deputy Spring, both of whom are on the board. Mr. Peter Sutherland was offered a position on the board but had to decline it due, I understand, to pressure of business. The Government is quite open in its approach to putting experts on the board to steer the company into what, hopefully, will be a magnificent opportunity to grow and excel.

Having a person of the calibre of Mr. MacSharry, with his high standing in the financial world, will add an enormous amount of credibility for people working in the Stock Exchange and on the financial markets, who are used to dealing with the public flotation of companies. Mr. MacSharry is a very respected man not alone in Europe but in American business circles. I congratulate the Minister for making an excellent choice. I wish Mr. MacSharry and his board of directors well in their deliberations over the coming year in Telecom Éireann.

Senators Manning and Costello called for a debate on the report of the Ombudsman. I will leave time aside for such a worthwhile debate. I also agree with their call for a debate or statements on Superintendent Geary, about whom all sides of the House are concerned, and will leave time aside for this matter. The Senators called for a debate on asylum seekers. I will relate this request to the Minister for Justice, Equality and Law Reform and have time left aside for it.

Senators Manning and Costello asked for a debate on the unexpected events in the European Commission. I will discuss this with the party leaders following the Order of Business to see how we can find time this week for such statements.

I join Senator Manning and other Senators in wishing the Lord Mayor well in his initiative. We will, with pleasure, afford time for him – a distinguished Member of this House – to come in and open the debate on the initiative.

Senator Coghlan expressed serious concern about the decision of the European Commission not to include Counties Kerry and Clare in Objective One status. We are all concerned about that decision. The Taoiseach did his best to have them included.

The Government capitulated.

In 1994, before the Senator became a Member of the House, it was decided that the money was to be allocated by region. If we tried to break up the regions, difficulties would arise. The people in the Clare, Kerry, west Limerick and west Cork areas might look at this in future as Objective One status was on a regional basis. I assure Senator Coghlan that the Government will do everything it can. He is fortunate that Clare and Kerry have two excellent Ministers at the Cabinet table who voice the opinions and concerns of the people there.

Is Deputy Healy-Rae one of them?

That is a foot in the door, not a seat at the table.

There is another Member of the other House representing the area, with whose policies Senator Coghlan is extremely familiar. Everything is being taken into account for Clare and Kerry, as well as Limerick and west Cork, which are in the same situation.

Total capitulation to German dictation.

In response to Senator Chambers' call I will provide time for a debate on the ESRI report at the earliest opportunity.

Order of Business agreed to.
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