I assume that one of the persons mentioned met the Taoiseach on many occasions in the past number of years.
I assume that person took the opportunity, as he regularly did in the public arena and in meetings, to make his views known again to the Taoiseach, as he has done with many Ministers and Members of the House from all sides, on the subject of privatisation of Telecom.
My understanding is, however, that no formal meeting took place with the Taoiseach and that person on this issue.
When the issue of privatisation studies was raised during September, I made the following statement on 12 September 1991:
As a matter of good business practice and arising from routine, informal discussions between senior Department of Communications officials and the company, Telecom Éireann decided to undertake an exploratory study of their future equity options, competition, liberalisation and deregulation issues and EC policy.
The Department and the Minister will receive a copy of the report, in due course, after consideration by the board. The Minister will then decide whether or not to put proposals to Government.
During June 1991 Telecom presented the Department with a copy of the Telecom 1988 IBI/Parabas study. The Department in July 1991 requested that Telecom in any update of the study also cover issues such as the regulatory framework, international competition and so on.
Telecom subsequently in August 1991 selected IBI and NCB to prepare a study on the implications of privatisation. Telecom did not discuss the scope of this study, the selection of advisers to conduct the study or seek the approval of the Government, the Minister or the Department for the study.
I believe that organisations such as Telecom should study various options as a matter of course. In this case although privatisation of Telecom would require new legislation, Telecom are entitled under the provisions of the Postal and Telecommunications Act, 1983, to conduct such studies.
My position is that these studies by Telecom would be useful in considering all options. I do not believe that proper decisions can be taken without adequate consideration of all the options. In this case while Telecom went ahead with the IBI/NCB study without seeking my approval, which they did not require, I would have been and remain interested in the results of any studies. In any case I was aware of the study and did not object to it.
As a result of other matters involving Telecom and the Ballsbridge site, I suspended the work on the IBI/NCB studies pending the finalisation of the Telecom inquiry. As the inquiry is continuing, I have not yet made any decision on this study.
No formal consideration of the matter by the Government has yet taken place. There are no proposals before the Government regarding the future of Telecom Éireann.
As far as I am aware no communication of any kind took place with the other person regarding the privatisation of Telecom.
With regard to the Ballsbridge site which Telecom purchased, there was no contact between either person and myself or the Department until my Department wrote to Telecom on 15 July 1991 seeking details of their plans for the site. The letter stated:
I am directed by the Minister for Tourism, Transport and Communications to say that the Minister has noted from time to time references in newspapers to Telecom Éireann's proposed new head office in Ballsbridge which is to be constructed at an estimated cost of £25 million.
The Minister has asked me to inquire when he will receive a request from Telecom Éireann for his approval to this proposal
Yours sincerely
The following reply was received from Telecom, dated July 22 1991.
Dear Sir,
Please refer to Mr. Ryan's letter of 15th July 1991 in regard to the Ballsbridge project. I am not aware of any provision under which the Minister's approval is required for this project.
Yours sincerely
I wrote again to Telecom on 31 July 1991. The following is the letter:
I refer to previous correspondence about Telecom Éireann's proposed new head office in Ballsbridge.
The Minister has asked me to find out details of the proposal from Telecom Éireann and I would be glad if you would provide information on the scale of the proposal, the likely cost, the manner in which the cost will be financed, the likely return on the investment involved and the current stage of development of the project.
Telecom provided some information on the Ballsbridge site project on 3 September, 1991.
To the best of my knowledge there was no communication between the two persons referred to and the Taoiseach or myself or my Department other than set out in this reply and the interim report of the Telecom formal inquiry.