Vol. 439 No. 1
1 Mr. Carey asked the Minister for Transport, Energy and Communications if his attention has been drawn to discussions which have taken place between Telecom Éireann and a major foreign telecommunications company; his views on the acquisition of equity in Telecom Éireann by such a company; and if he will make a statement on the matter.
I am aware that Telecom Éireann has had discussions with various parties about possible strategic alliance options. In fact the chairman of the company said in the most recent annual report that it regularly considers such alliances. Given developments which are unfolding in the industry internationally, it would be surprising if Telecom Éireann was not engaging in exploratory contacts of this kind.
The question of acquisition of equity in Telecom Éireann by a third party is a matter for me and for the Government. The present position of the Government on the issue is stated clearly in the Programme for Government, which says that the Government will guarantee that the main strategic utilities and enterprises remain in the ownership of the Irish people, while having the freedom to enter joint ventures with the private and co-operative sectors.
I am not actively considering any proposal regarding disposal of equity in Telecom Éireann.
The question gave the Minister an opportunity to say something serious about Telecom Éireann. I regret that the Minister has not illustrated the extent of the contacts that have been made with this company. Will the Minister confirm that talks are going on with the UK company and that the trade union representatives have been in touch with both the Minister and Telecom with regard to their reservations in this regard and whether the Minister will encourage the company to contact French Telecom, which has indicted that it is particularly interested in an Irish joint venture?
I have replied to the question and stated clearly that I would find it surprising if Telecom was not in exploratory talks with a number of prospective partners if it was in its strategic interest to do so. It is clear from the developments in the industry worldwide and in Europe that this is taking place in a range of utilities in other countries. The Government and my Department have not been party to any such talks. Until a proposal comes to me I am not in a position to speculate one way or another. Should a proposal come before us it will be considered in the best interest of the future of the company.
I am concerned that the Minister in his reply has not adverted to the valuable business that could be conducted with French Telecom, which is very similar to Telecom Éireann, whose brief would be to seek joint ventures. Would the Minister not see that as a useful contact?
I do not hold a brief for French Telecom. If it feels it can get involved in some business arrangements with Telecom Éireann, it is a matter for the commercial people of the two companies. I do not pre-empt or preclude any prospective strategic partner being obtained by Bord Telecom. Let us wait to see if there is a proposal to consider rather than speculating on when, where and why.
May I inquire why questions are in the name of Deputy Carey and not in the name of my friend, Deputy Noonan, who has been spokesman for this matter for the last 12 months?
That is irrelevant now, Deputy.
