Cowen refuses to be drawn on FG call to nationalise Eircom

TAOISEACH BRIAN Cowen refused to be drawn on Fine Gael calls on the Government to take back ownership of Eircom, saying he would await a briefing from Minister for Communications, Energy and Natural Resources Eamon Ryan.

“The Government policy on this is to ensure there is investment, certainty and competition in the marketplace – we have developed the communications industry in this country over the last number of years quite successfully and Eircom is an important player in that.

“Obviously the Government is available to talk to anyone who has views on how we can improve the situation, so I don’t take any particular position on any particular proposal that emerged this morning or yesterday until our Minister has an opportunity to examine it.

“I’m not getting involved in speculation on policy only than to say what the existing policy position is and that the Minister for Communications will come to us in due course – it’s not wise to make policy on the hoof in response to questions.”

Fine Gael spokesman on communications Simon Coveney said yesterday that the State should commit to a renationalisation of Eircom infrastructure amid growing concern over the company’s financial circumstances.

“The last thing we need is a new consortium purchasing Eircom to make a quick buck by reselling it again in three or four years’ time.”

Mr Coveney added that the latest offer for Eircom “should be a warning shot to Government that it can no longer stand by and allow Eircom to be bartered for by investors at the cost of Ireland’s future infrastructure.

“The suggestion that Eircom would be sold off to former Babcock Brown managers for €95 million is a dangerous attempt by new investors to turn over a short-term profit at the expense of our long-term future. Eircom is a vital company of strategic importance to Ireland and its infrastructure is key to the future development of a modern next generation telecommunications infrastructure.

“What has happened to Eircom since privatisation has been that a series of owners have bought and sold the company for considerable profit while dramatically increasing debt levels. This cycle cannot be allowed to continue and the State should now examine ways in which the Eircom infrastructure can be purchased in the State’s interest. We need a long-term investment plan for Eircom’s infrastructure to complement the considerable telecommunications infrastructure the State already owns.”

He said: “In the current climate, a new State company could purchase Eircom at an affordable price and, even in recession when finance is tight, this is an opportunity that the Government should not pass up.”