HP, the technology firm formerly known as Hewlett-Packard, has suspended 150 people in Britain and placed a small number of Irish staff under investigation for inappropriate use of the internet.

The company, which employs 4,200 people in the Republic and Northern Ireland, said it was investigating instances where staff had downloaded "inappropriate material" by e-mail.

It is believed some HP staff were using the company's internal e-mail system to circulate pornographic material. But the company would not confirm this.

A total of 60 permanent and 90 contract staff at its offices across the UK and Ireland have been suspended following a major investigation. A handful of staff have also been sacked by the firm.

A HP spokeswoman said only a small number of staff were being investigated at offices in the Republic. She would not reveal which offices were affected by the ongoing investigation.

HP, which recently merged with US firm Compaq Computer, has offices in Belfast, Dublin and Galway.

"We take an abuse of commercial property and resources very seriously and are dealing with the abuses through standard human resources practice," said the HP spokeswoman. "HP ensures all employees have access to e-mail. . . however, as well as protecting its reputation as a large employer, HP has a responsibility to protect people from offensive behaviour."

HP said the firm would implement standard disciplinary action when the results of its internal investigation were known. "HP takes these issues very seriously," she added.

Two of HP's workers in Scotland, where the company has four offices, are understood to have been dismissed, according to media reports yesterday. HP is the latest in a growing number of Irish firms to discipline staff members for inappropriate use of the internet.