SAVING jobs is as important as raising funds for the Government when Telecom Eireann is part-privatised, a trade union leader has told the Minister for Finance.
He added that some of the funds raised must also be used to reduce Telecom's huge debt.
Mr David Begg, general secretary of the Communications Workers' Union, says the Government has a key role to play in seeking a strategic partner for Telecom.
In a pre-Budget submission to Mr Quinn, Mr Begg reminds him that "the Government mandate on the formation of A strategic alliance for Telecom Eireann enables the company to transfer up to 35 per cent of its equity to a strategic partner.
"It is clear that if the Minister sets a high cash price for the sale of these shares, the strategic partner, whoever it is, will look to remunerate that large investment through drastic cost-cutting. This will inevitably mean massive job losses.
"If, however, the cash price is set at a lower level and the Government also seeks investment in the form of technology transfers and access to foreign markets, we will be able to retain many of the existing jobs in Telecom Eireann, and over time grow the number of jobs in the company...
"In essence, we are asking the Minister to give employment equal weight with other factors such as the price paid for the equity and the appropriate regulatory regime," he said.
On debt reduction, Mr Begg said that at present the debt/ equity ratio was 21/2 times higher than that of British Telecom, our main competitor.