I agree with the Deputy on the importance of this issue. The issue of telecommunications costs is of vital importance to us. As the Deputy is aware, and as indicated by Forfás and in earlier reports, there are three main centres, the Asian, United States and European centres. If we avail of every opportunity, we have the capacity to move forward. We have the people with the brains and we have the necessary structures. It is a question of approaching it in a much more dynamic way.
That is the message I tried to impart at the meeting with the board of Telecom Éireann last Thursday. It shares my concern at the reports. I made the point that it should not be so defensive in its response. As the Deputy said, the cost of calls has come down by 17 per cent. Despite this, they are still too costly. The Taoiseach and the Tánaiste have informed me that this point is made consistently in IDA reports, including those on industries which decided not to locate here. The cost of telephone calls, Internet charges and the lack of investment in broadband infrastructure are consistently highlighted. They are interlinked. I informed the board about the ESOP which was concluded the previous night. It is aware of the need to tackle the issue in a much more dynamic way and that competition is looming quickly.
As the Deputy is aware, a derogation was sought in 1993 and finally granted in the latter half of 1996 in respect of voice telephony services. It covers the period to the year 2000. We had sought a derogation to 2003. This formed part of the commercial contract and strategic alliance deal entered into by KPN-Telia with Telecom Éireann. It was envisaged at the time that there would be a sale of a 14.9 per cent stake to the workers. This did not come off but I am glad it has now been concluded.
I share the Deputy's sense of urgency on the need to introduce competition earlier than the proposed date but I am conscious that commercial and political agreements have been entered into by the strategic partner, the company and the Union Coalition. I hope the sale of Cablelink, which the Deputy supports, will proceed. Having reached agreement with the employees, the board will now work to make the company more competitive. To put to one side a commercial contract would be the incorrect path on which to travel. I am not prepared to put to one side the contract with the workers which I concluded last week concerning employee share ownership. I told Telecom Éireann clearly and openly that its telephone and Internet charges are too costly while its Internet services are too inaccessible. I have also raised the lack of infrastructure in broadband.