asked the Minister for Communications if he will review as a matter of urgency the proposal in Building on Reality, 1985-1987 that Bord Telecom Éireann should make a capital repayment to the Exchequer of £180 million.
Ceisteanna—Questions. Oral Answers. - Board Telecom Éireann Capital Repayment.
15.
There has been no change in circumstances since the decision was taken that Bord Telecom Éireann should make contributions to the Exchequer of £50 million in 1985, £60 million in 1986 and £70 million in 1987, and I do not propose therefore to review the provision. I am, however, examining how Bord Telecom Éireann could be given credit for these payments.
In relation to the hardship this will impose on Telecom Éireann and the difficulties which will arise because Telecom Éireann will have to borrow the extra money from the Exchequer, will the Minister review the decision made in Building on Reality? Most of the policy decisions taken in Building on Reality have been changed. It would be appropriate for the Minister to review the charge on Telecom Éireann which is a charge on the public and which will create unemployment in Telecom Éireann or extra borrowing by Telecom Éireann.
The levy of £50 million, £60 million and £70 million on Bord Telecom Éireann arises directly from the decision taken by the Government during the course of 1982 about the remuneration of the debt in equity of Telecom Éireann.
The Minister is being mischievous in his statement because no firm decisions were taken in relation to the amounts. No detailed statement was given that the amounts would be as the Minister has outlined. I accept that Telecom Éireann should make refunds to the Exchequer but only when they are in a profitable position. That was our policy and it is misleading of the Minister to inform the House that we were in favour of the £180 million clawback from Telecom Éireann. We are in favour of a refund when Telecom Éireann are in a profitable position.
I assure the Deputy that I am merely implementing the decision taken by the Government in 1982 in such a way that will be least harmful to Telecom Éireann.
Would the Minister not agree that this imposition is coming far earlier than it should and that the policy of the Government to which he referred was to give Telecom Éireann breathing space in order that they could start making a profit and that if this is imposed too soon it will strangle the new board by heavy interest charges too early in its career?
There is no intention to strangle the new board. The new board will be very successful and very profitable in due course. The payment schedule which I was advised on was based on decisions made by the Deputy's Government.
Not for those years.
If the Minister is not interested in strangling the board will he agree that they will have to borrow the £50 million or £60 million necessary to pay back the money to the Exchequer? If he is not interested in strangling the board will he assure the House that they will not have to borrow the money?
Deputy Reynolds was a member of the Government that directed this.
Will the Minister correct the order? Will he assure the House that the board will not have to borrow the funds to pay back to the Exchequer?
It is a bit much to have to take this from the Deputy who was a member of the Government when the decision was taken that equity with remuneration would be the system. I have decided on a course of repayment that will cause the least difficulty to the board.
The Minister did not answer the question. Will he assure the House that the board will not have to borrow the money, yes or no?
That is a matter for the board.
Does the Minister accept that the board are on record as having stated that they will have to borrow this money? Surely the Minister will strangle this good organisation before they have had time to get off the ground.
I am merely implementing a decision taken by the Government of which the Deputy was a member.
How can a levy be substituted for a dividend? How can the board be made to pay a dividend if they are expected to borrow the money paid to the Exchequer?