The rail signalling inquiry heard today how "a flurry of decisions" regarding the liberalisation of the telecommunications sector were taken in 1997 in the inter-regnum period between two government administrations.
Former Fine Gael transport minister Mr Alan Dukes told the inquiry that a number of "weighty decisions" were taken in the last days of the rainbow coalition before it handed over power to the incoming Fianna Fáil-led administration.
It was during this period that CIÉ signed a joint venture with Esat Telecom to lay fibre optic cable along the national rail network in parallel with upgrading its signalling system.
The inquiry is investigating why the cost of this upgrade overran its initial estimate by over £36 million. It is also investigating what link the network built for Esat had to the overrun.
Mr Dukes said the apparent haste to get matters concluded was prompted by a perception in some quarters that the incoming administration might be less inclined to liberalising the sector.
The Minister for Public Enterprise, Mrs Mary O’Rourke, was questioned by the inquiry about a ministerial order she made to allow the Esat deal to go ahead.
Mrs O’Rourke admitted the project to install the mini-CTC signalling system had been disastrous both financially and managerially.
She claimed she had been misinformed by CIÉ officials that the final deal between the state company and Esat had been endorsed by telecommunications consultants Norcontel.
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