I am disappointed that we do not have a meaty Supplementary Estimate to deal with the crippling transport crisis the country is facing. I would like to have seen the Minister being in a position to provide a transfusion of money for buses and the various transport issues, not only in Dublin but in other urban areas. I would like to have seen the vital money necessary to upgrade our railways being provided. A Private Members' debate on this issue is running concurrently in the Dáil with this Estimate discussion. I will say more about that later.
Those issues need money, not more reports. I am dismayed to see, arising from the Minister's comments last night, that all we are being offered is a fare increase in January, an ERSI report and another Arthur Andersen report. From a Minister who is knee-deep in reports, two more reports make it harder to fathom where we are going on these issues.
I wish to make specific comments on subheads A3 and A9. The Minister will recall that, when we discussed the Estimate here previously, I strongly raised the issue of the TV deflector groups at the end of the debate. I see that subhead A3 is to pay out the Carrigaline Community Television Broadcasting Company. I am not in favour of all this litigation. I am in favour of switching them on. The Minister and the Telecommunications Regulator, Ms Étain Doyle, should get together and agree, as she has signalled to the committee.
At some stage, the clerk of the committee should communicate with Ms Doyle because she promised that by the end of the year she would have the regulations with a view to the interim licensing arrangements for TV deflector groups. You will recall that we met a number of them, including one from the south-east. We passed a resolution which we sent to the Minister and to the regulator, Ms Doyle.
The truth is, however, that people cannot watch BBC's Grandstand or Channel 4 programmes in areas where deflectors have been shut down. They have the luxury of TnaG, RTE 1, Network 2 and TV3. In this day and age, that is a disgrace. Is the Minister able to report any progress on that issue which is very close to my heart? A large area of the south-east is devastated by this, particularly the pensioners who cannot afford the MMDS. To rub salt in their wounds, when they go to the franchise operators they are told they have no signal in their area.
Subhead A9, the share sale in Telecom Éireann, is a very important issue. We are providing an extra £1.1 million in this regard. What is the Minister's thinking on this issue because it is a long time since the decision was taken for the IPO in mid-year 1999? The State owns 50.1 per cent. What proportion of the shares will be sold or will they all be sold? Will it be done in a one share sale? From the British experience and that of other European countries, I have been advised by brokers that if one wishes to maximise the price one needs to create a market in the share, a tradable share, and not sell it to the institutions.
It now transpires that, after deregulation on 1 December, people have been paying way over the odds to Telecom Éireann, particularly if one looks at the wholesale charges on Esat and others for the use of the network. The most deserving people for shares are the subscribers, the hard paying Joe Public who put Telecom Éireann where it is today and who had no choice except in relation to international calls.
Perhaps the Minister will make a good news announcement - not that she is prone to making too many lately - that subscribers will be given free shares or the option to buy shares. I have been advised by brokers that if one creates a trade in shares, it will stimulate the price upwards because if the institutions are not able to buy their full complement, they will have no choice but to go to the market to buy shares. We do not want what happened in the UK where shares are offered at a particular price but when they start trading, they are worth 40 per cent or 50 per cent more and speculators make a killing. If anyone is to make a killing, it should be the Exchequer. I understand Merrill Lynch and AIB are the designated consultants and that is why £1 million is being provided. What is the situation as regards the volume of shares to be sold?
Last night the Minister made the comment that she would seek investment for public transport, which we accept and support. Her Department, however, will have a huge windfall of capital as a result of the sale of these shares next year. Surely there is a fair case that it should be retained in her Department for the purpose of public transport. The Minister said there were demands from CIE for over a £1 billion of public expenditure for rail, the Luas, buses and so on. Why not earmark the proceeds of the Telecom Éireann share sale for this purpose and replace one capital asset with another which is very badly needed? That is the best way to finance the public transport requirement. It is an affordable and accessible way and is not wishful thinking.
I saw a statement attributed to the Minister or the Department saying there is a shortfall in the pension funds of Telecom Éireann and that much of the proceeds of the share sale will go towards this purpose. What is the shortfall in relation to the pension funds of An Post and Telecom Éireann? What are the Exchequer's options in that regard?