Opposition deplores Telecom share deal

THE Bill providing for the part privatisation of Telecom Eireann went through its final stage. Its passage followed heated exchanges between the Fianna Fail communications spokesman, Mr Seamus Brennan, and the Minister of State for Communications, Mr Emmet Stagg.

Mr Brennan said it was amazing that a 20 per cent stake in the country's most successful semi state company was being sold off for £183 million by a Government with a left wing element. That price represented just three times annual profits while similar deals in Britain and other parts of Europe were commanding four times that figure.

"It is a shabby deal and no one in this country - pension funds or workers - are getting a share. If they want a share they have to go to Holland to buy it."

He demanded that the contract for the deal with KPT/Telia be laid before the Dail so that people could judge it for themselves. "This is a financial and political scandal," Mr Brennan said. When profits accruing from the first three years were taken into account, Irish taxpayers would be receiving probably less than £100 million. "If this happened while my party was sitting over there you and your colleagues would be apoplectic," he told Mr Stagg.

Mr Stagg disputed Mr Brennan's figures. The £183 million was an initial payment but when the option to take up more shares was taken into account the value of the contribution would be closer to £500 million. If Fianna Fail had its way Telecom would be completely sold off. He accused Mr Brennan of making false claims that could only damage Telecom, its workforce and the national interest. "I am glad to defend this transaction. We have a deal that is going to be good for Irish business."

The deal was "excellent value", not only financially but in the way it would lead to modernisation of Telecom, enabling it to focus on the needs of its customers. The priority was to find a partner with the right qualifications and that had been done.

Mr Robert Molloy (PD, Galway West) asked why the contract was not being published. Telecom had £1.5 billion invested in it over the last seven years and must now be worth £2.5 billion. "There is great concern on this side of the House about the deal."

The issue was put to a vote after a shortened debate during which there was no time to discuss a number of amendments. The Bill, including Government amendments, was passed by 66 votes to 55. It now goes to the Seanad.

Earlier, the Opposition parties challenged a vote on the Government proposal to guillotine the debate. Mr Brennan said it reduced the number of worker directors in Telecom Eireann and sold off shares "at a scandalously low price" to foreign investors without as much as a protest from the left wing parties in the House. The Bill should not be guillotined until the contract documents were brought before the House so the public could see what a scandalous deal it was.

Mr Molloy said the Bill should not be finalised until the Government made available to the House the full details of the contract entered into in the sale of a major national asset. "This is the first time that part of a State company has been sold without full disclosure of the details of the contract of safe."

The Taoiseach, Mr Bruton, said he was sorry the Opposition parties were taking such a view, because he understood that their whips had not objected to taking the Bill as planned.

The PD leader, Ms Mary Harney, said that during the life of the Fianna Fail PD governments all of the details were revealed when Greencore and Irish Life were being disposed of.

The Taoiseach said there was no comparison between a public flotation which occurred in the case of Irish Life, where under the Stock Exchange rules it was being sold to the public at large, and a private deal where there were confidentiality requirements.

The guillotine motion was passed by 68 votes to 56.