Dáil Éireann díospóireacht -
Wednesday, 3 Nov 1999

Vol. 510 No. 1

Written Answers. - Telecom Éireann Flotation.

Ruairí Quinn

Ceist:

31 Mr. Quinn asked the Minister for Public Enterprise if her attention has been drawn to complaints made by Telecom Éireann share applicants who did not receive share certificates or nominee account statements for several weeks after 14 July 1999 when share dealings commenced; her views on whether the delay in delivering those certificates and statements resulted in loss to persons who had intended trading in the shares as soon as was practicable to do so; the nature and scale of the problem; the reason for the delay; if those responsible for this delay owe any duty either to share purchasers or to her as seller of the shares; if those responsible will indemnify shareholders for any losses suffered; and if she will make a statement on the matter. [21798/99]

Minister for Public Enterprise (Mrs. O'Rourke)

I am aware that a number of applicants did not receive share certificates or nominee statements for some time after 14 July 1999. The delays arose for a variety of reasons, including transmission delays in the postal system and applications that had either insufficient address details or required extra processing.

About 570,000 people applied for shares in the retail offer. Given the sheer volume of applications it is inevitable that some difficulties may arise in a certain proportion of individual cases. I understand that the number of applicants who did not receive their shares for some time after 14 July was about 0.5% of the total number of applicants. Where difficulties arose, my Department endeavoured to do everything possible to assist the applicants involved within the terms of the retail offer.

Procedures are in place for applicants who feel they have been unfairly treated during the retail offer process. A review group comprised of Department officials and advisers was set up immediately following the flotation to adjudicate on cases where applicants feel their application for shares in Telecom Éireann was not processed equitably in accordance with the terms of the offer. Applicants can also contact Computershare, the registrars to Eircom, if they have a query.

If the Deputy has any particular case that he would like to refer to the review group, I would be pleased to arrange for it to be reviewed.

The sale of shares was conducted in accordance with the terms of the retail offer and the question of my Department compensating purchasers who have availed of that offer does not arise. In any case, the movements in the share price since the IPO date are a matter for the international financial markets.