Vol. 490 No. 6
2 Mr. M. Higgins asked the Minister for Arts, Heritage, Gaeltacht and the Islands if she will give the broadcasting policy reasons for the Government's decision to instruct RTE to sell its 25 per cent share in Cablelink. [10907/98]
I refer the Deputy to Question No. 572 on 21 April 1998 in which I indicated that the Government had decided on 7 April 1998 that Telecom Éireann's and RTEs shareholdings in the company should be disposed of by means of a trade sale as soon as possible. This decision was taken following consideration of various options on the basis of a memorandum submitted by the Minister for Public Enterprise on the further development of Cablelink.
The difference between my question today and Question No. 572 of 21 April is that I have asked for the broadcasting reasons for the decision. What specifically were the broadcasting reasons for the instruction to RTE to dispose of its 25 per cent shareholding in Cablelink?
The question of ownership of Cablelink, or any other cable television station, does not of itself raise any issues of broadcasting policy. However, the Government decided to accept the proposal of the Minister for Public Enterprise on the 7 April when that Government decision was taken. The nature of the decision that was taken was also made known to RTE at official level on the same day. It was followed up in writing on 22 April when the chairman of the RTE Authority was given official notice of the Government's decision.
This proposal was put to Government by the Minister for Public Enterprise and it was a Government decision.
I am grateful to the Minister for explaining to me how the decision was taken and the elaborate procedure for communicating the decision. However, we are still left in the position that the national public service broadcaster — one of whose main assets was a 25 per cent holding in Cablelink — has made submissions in relation to, for example, digitalisation. In order to achieve its proposals for digitalisation it has to manage its assets. This is a significant asset in that the public service broadcaster owned it.
Is it not seriously damaging to the proposals that RTE has made to the Minister and the Government in relation to digitalisation, to require it to dispose of its 25 per cent holding? Did the Cabinet have Cablelink valued before this decision was taken and was such a value communicated to the RTE Authority?
I thoroughly agree with the Deputy that the 25 per cent shareholding in Cablelink is a significant asset. However, I would not see its sale as damaging the potential of RTE or broadcasting policy.
It might be of assistance for the Deputy to know that in his reply to the letter of 22 April, outlining the decision taken by Government on 7 April, the chairman of the RTE Authority stated that: "The authority will be glad to co-operate in the sale process". It is important to repeat that, as a shareholder, RTE will be involved in the process.
With regard to any price that was mentioned, the Deputy will realise that it is not for me pre-empt the sale process. I certainly have no intention of doing so at any stage, either now or at any future date.
I asked the Minister about this issue because the price of Cablelink, and therefore RTE's 25 per cent of it, prior to a decision about digitalisation might be very different to the price after such a decision is taken.
Correct.
I am not asking for a figure, but were the parameters of the value of Cablelink discussed in the memo? Was there any contact with the RTE group of trade unions on this decision?
The first part of the Deputy's question is out of order as it would not be appropriate to debate a Government memorandum in the House.
I will put the question differently and in a proper way. In going along with the Government's decision on Cablelink, did the Minister consider the implications for the sale of digitalisation?
As a former Minister, the Deputy will know there is no question of my being in a position to breach Government confidentiality, nor would I wish to.
Of course.
Obviously before any decision of this nature would be taken, all the options would be looked at and evaluated in the best possible way, given the information at the time. I assure the Deputy that was done before any Government decision was taken. It was done by me and all the members of the Cabinet.
And the RTE trade union group?
As far as I understand it, there is no reference to any particular group, whether it be a trade union or otherwise. This was a political decision taken in the light of all the available information. The chairman of the RTE authority will be happy to co-operate with the sale process. He let this be known, formally, in a letter to me.
He could hardly be said to be sad.
