I propose to take Questions Nos. 51 and 119 together.
My Department is currently engaged in an intensive series of negotiations with the union coalition in Telecom Éireann on an employee share ownership plan for employees. While good progress is being made in the discussions, the negotiations have not yet reached a stage where final agreement has been reached. I remain confident that agreement will be reached soon.
As the Deputy will be aware, the Government is prepared to make available up to 5 per cent of the company's equity to the employees in return for the verified implementation of restructuring, specified cost reduction and change within the company. The Government is also open to practical and feasible proposals by the employees to bring their shareholding in the company up to 14.9 per cent in return for cash payment to the Exchequer on transfer at a fair price when it is satisfied that this will assist the future development of the company and that the conditions relating to the initial shareholding of up to 5 per cent are satisfactory.
It is envisaged that shares wil be made available to employees through employee share ownership programme involving trust schemes and structures which offer employees favourable tax treatment for the purchase of shares in their company and which ensure that shares are allocated to employees in a tax efficient way.
The fair price to be paid by the employees for the shareholding of up to 9.9 per cent will have regard to a current market valuation of the company, an exercise which is currently being undertaken by Morgan Stanley, the financial advisers engaged on the project by my Department.