THE Cabinet will today discuss a package of measures aimed at opening up competition, and resolving the dispute, in the TV deflector industry.
Government sources conceded that "serious difficulties" arise from "the exclusive nature" of MMDS contracts. There are deep concerns that whatever the Cabinet decides on licensing may be open to legal challenge from the existing MMDS firms.
The Minister for Transport, Energy and Communications Mr Dukes, is today due to propose. legislation in an attempt to defuse the dispute, which is seen as endangering the seats of several Government TDs in the forthcoming general election.
The Government's intentions are expected to be made public after the Ministers consider the package. However, according to sources, a resolution will be hampered by the contracts agreed with the companies currently supplying multi channel services.
A "very firm contract" was given to MMDS companies "by a previous government" (Fianna Fail/Progressive Democrats) and these details would have to be seriously considered, sources said.
Meanwhile Mr Ray Doyle, the chief executive of Cable Management Ireland, writes in today's Irish Times that it was "unthinkable in a modern world" that a government would act deliberately to undermine and damage a major industry.
"Yet this is the position today of the licensed cable/MMDS industry as it awaits the deliberations of the Cabinet on proposals being put forward by the Minister for Communications, Alan Dukes, to offer legal status to unlicensed UHF deflector operators," Mr Doyle says.
The "legal and moral right" of the Minister to act in an adversarial manner against an industry heavily regulated by his Department is "seriously in question," he adds.
MMDS was founded on a determination by the State that the retransmission of television signals would be properly regulated and confined specifically to cable and MMDS systems, he says.
A "solemn commitment" was given in writing in 1991 by the then Minister for Communications, Mr Ray Burke, that illegal UHF deflector systems would be removed.
It was on this basis that the licensed companies won the confidence of the international financial and investment community to put many millions of pounds of capital expenditure into the development of MMDS systems, Mr Doyle claims.
Government sources indicated that since feelings are running so high among deflector groups, the issue must be resolved without further delay. If it is necessary to push the legislation through hastily, that will be done, the sources said.
The threat that deflector groups may decide to put up candidates has concentrated political minds.
It is understood that the Ministers will consider a range of options, including, the possibility of providing interim licences pending the full resolution of the controversy. This would allow TV deflector systems to continue operating for the time being.
Large areas, for example 40 per. cent of Mayo, would be affected by a deflector shutdown.
The Fianna Fail spokesman on Transport, Energy and Communications, Mr Seamus Brennan, said his party was in favour of competition between MMDS and deflector systems and "we will bring that about in Government."
Because of the scale of international investment in this area, it was important that it be handled correctly, he said.