The first motion reads:
That Dáil Éireann approves the amendments, approved in May, 1999 by the Assembly of Parties of the European Telecommunications Satellite Organisation, to the Convention establishing the European Telecommunications Satellite Organisation, which originally entered into force in September, 1985, copies of which (including the amendments) were laid before Dáil Éireann on 27th October, 2004.
The second motion reads:
That Dáil Éireann approves the amendments, adopted at Copenhagen on 9th April, 2002 by the Council of the European Radiocommunications Office at its fourteenthordinary meeting, to the Convention for the establishment of the European Radiocommunications Office (ERO) (The Hague 1993), and approves the ratification of the instrument amending the ERO Convention which was signed by the Irish Ambassador to Denmark, subject to ratification, in Copenhagen on 17th December, 2002; copies of the Convention (including the amendments) and an attached copy of the instrument of ratification were laid before Dáil Éireann on 27th October 2004.
I thank the Chairman and members of the committee for their welcome. I look forward to working with the committee. I am aware of the work of the committee and in particular its report on the IT area which has been very well received by everybody.
I am bringing before the committee a motion seeking Dáil approval to the amendments to the convention setting up EUTELSAT, the European Telecommunications Satellite Organisation.
Dáil approval is required for Ireland to ratify the amended convention, which allows for the restructuring of EUTELSAT from an intergovernmental organisation providing satellite services into a private company overseen by a restructured intergovernmental oversight body. This is a straightforward ratification of an international agreement.
I will briefly deal with the background to EUTELSAT, the reasons for the restructuring of EUTELSAT, the implementation of the restructuring, the ratification process and the implications of this process. Much of what I say also applies to the second motion and I will not repeat it but rather deal with specific details.
The genesis of EUTELSAT was in the 1970s when the possibilities offered by space were beginning to be embraced by Europe. EUTELSAT was established provisionally in 1977 to provide international telecommunications services using satellites. Ireland joined this arrangement in 1981. In 1985 EUTELSAT was formally established as a European intergovernmental organisation with member states investing in EUTELSAT, the level of investment being in proportion to their use of the system. In Ireland's case responsibility for these investments rested initially with the Department of Posts and Telegraphs, then with Telecom Éireann and finally with Eircom.
Since EUTELSAT was set up in 1985 the international telecommunications market has changed dramatically. Increased liberalisation and ownership changes in telcos have contributed to a seismic change in the environment in which EUTELSAT was operating. Facing increased competition, it was recognised that EUTELSAT needed to restructure if it was to continue to thrive and to be in a position to meet its important basic principles of facilitating satellite communications for public services, particularly telecommunications services and television broadcasting and ensuring non-discriminatory access to and fair competition for all member countries. In order to meet these challenges, EUTELSAT was restructured in July 2001 from an intergovernmental organisation to a private company, EUTELSAT S.A., and an intergovernmental oversight body EUTELSAT, which is based in Paris. This restructuring followed agreement in May 1999 by member states to amend the original convention setting up EUTELSAT.
EUTELSAT oversees the company and ensures that it meets key public service obligations. The relationship between the intergovernmental oversight body and the company, is covered by the amended convention and a subsidiary legally binding agreement. Before the restructuring EUTELSAT had been afforded certain diplomatic privileges. An existing Government order called the European Telecommunications Satellite Organisation (EUTELSAT) (Designation and Immunities) Order 1993, is in place under section 40 of the Diplomatic and Immunities Act as amended. My officials are examining amending secondary legislation in order to amend the privileges and immunities so that they are retained by EUTELSAT and removed from the company in accordance with the amended convention. It is intended that this legislative issue will be tidied up following ratification of the amended agreement by Ireland.
Those who invested in the EUTELSAT before restructuring were entitled to a shareholding in the privatised company. Eircom is entitled to a shareholding of approximately 0.05% of the company. When Eircom was privatised in 1999 its assets transferred with it, including its EUTELSAT shareholding.
The ratification process requires ratification by two thirds of member countries at the time of the agreement to restructure, representing two thirds of the investment share of EUTELSAT. On 31 July 2002 these two requirements were fulfilled. There is currently ratification by 32 of the 46 countries who were party to the agreement to restructure, representing 67.52% of the investment share. In accordance with the convention, the amended convention entered into force 120 days later on 28 November 2002. The proposed amendments have no implications for Exchequer costs or staffing. There is no subscription charge for membership of EUTELSAT. EUTELSAT is financed by the company EUTELSAT S.A.. I wish to emphasise to Deputies that EUTELSAT still remains in place as an intergovernmental oversight body to ensure that the company continues to meet its core principles.
