Vol. 480 No. 7
72 Mr. Yates asked the Minister for Public Enterprise the steps, if any, she has taken to conclude a worker or employee share ownership plan in Telecom Éireann; the terms of the proposed sale of 14.9 per cent of Telecom Éireann's shareholding to its staff; the way in which the evaluation of the shares in this regard will be determined; and if she will make a statement on the matter. [15062/97]
As I stated in my reply to Question No. 20, the Government is committed to the conclusion of an employee share ownership plan in Telecom Éireann in the spirit of social partnership and consensus.
I have recently met with representatives of KPN/Telia — the State's strategic partner in Telecom Éireann — the company and the unions with a view to determining a framework within which the negotiations on an employee shareholding scheme can be restarted. This framework is now almost in place and I look forward to the recommencement of negotiations with a view to reaching agreement on an acceptable deal within the coming months.
The details of any scheme are a matter for negotiation between the parties. From the outset for the strategic alliance process, a shareholding of up to five per cent was earmarked for the employees of Telecom Éireann in return for verified cost reductions and change within the company.
The Government, in response to the union's proposals to maximise employee shareholding, is open to practical and feasible proposals by the staff to purchase for cash payment to the Exchequer at a fair price, shares in excess of five per cent when it is satisfied that this will assist the future development of the company and that the conditions relating to the initial five per cent are satisfactory. Any transfer of shares beyond five per cent can only be considered with the agreement of the strategic partner.
The exercise of determining a fair price for the shares in Telecom Éireann require a valuation of the company and this will be one of the first exercises to be undertaken as part of the renewed negotiations. This valuation will be carried out by professional advisers.
