Brian O'Shea
Ceist:88 Mr. O'Shea asked the Minister for Finance the nature of the input and responsibility of his Department in relation to the intended flotation of Telecom Éireann; and if he will make a statement on the matter. [10213/99]
Written Answers. - Telecom Éireann Flotation.
It is established practice that the Department of Finance is involved in the sale of shares of State companies, acting in cooperation with the Department having direct line responsibility for the company. This was the case with Greencore and Irish Steel, for example. The flotations of Irish Life and of Greencore were handled by the Department of Finance. This established practice is being followed in relation to the flotation of Telecom Éireann.
There is a close and co-operative working relationship on the matter between the Depart ment of Public Enterprise and my Department. The consultants advising on the sale process are contracted jointly by both Departments. The Department of Finance is also represented on all of the key working groups. The Department has been fully engaged in the lead up to key decision points and in managing the normal logistics associated with a flotation process.
In most cases the bulk of the State's shareholding in State companies is held by the Minister for Finance. The legislation under which Telecom Éireann was established provided that the State's shareholding in the company is held by the Minister for Public Enterprise and the shares to be floated will come from her holding in the company apart from a single share held by the Minister for Finance. The key strategic decisions on the various elements of the flotation are taken at Government level on foot of proposals from the Minister for Public Enterprise who has primary shareholder responsibility for the process, The Minister for Public Enterprise has sponsored the amending legislation necessary to facilitate the public offering of shares in the company. She has also ensured that Deputies have been fully briefed on developments affecting the IPO through her statements in the Dáil and in replies to parliamentary questions.