THE Garda could receive up to £3 million worth of free telecommunications services annually by leasing its radio masts to Esat Digifone.
Agreement for Esat Digifone to lease space on radio masts on 704 Garda stations has not been finalised, but discussions with the private mobile telephone company are continuing.
It is understood there had already been unsuccessful negotiations about a similar link with Telecom Eireann before the discussions with Esat Digifone.
The Garda Commissioner, Mr Patrick Byrne, yesterday signalled, his support for the project.
He said: "It is a good deal as far as we are concerned. I have no problem doing business with private enterprise as long as there is value for money for us and the taxpayer and it does not interfere with the Garda Siochana communications system or operations."
Mrs Owen said yesterday that no agreement "has yet been concluded" to allow Esat Digifone to use the masts on Garda stations to extend its network.
A "definitive decision" to enter such an arrangement would be taken only if it could be established that it would represent "value to the State and would not impair Garda communications or security", she stated.
Asked about the proposal to allow Telecom Eireann's competitor to use State property to develop its network, Mrs Owen said in a written reply, that the Garda authorities were approached by Esat Digifone in September with a proposal to share Garda radio masts in the context of its planned mobile telephone network.
The Garda authorities considered that such an arrangement would be technically feasible and that there were mutual benefits from considering this proposal
Having consulted the Departments of Finance, Transport, Energy and Communications and the Office of Public Works and determined that they had no objection in principle to Esat Digifone sharing Garda radio masts, Mrs Owen granted approval in principle to the Garda Commissioner to enter discussions.
A condition of any agreement would be that Eat Digifone's use of any Garda site would be subject to full compliance with planning legislation. The Department of Finance and the Office of Public Works were being kept informed of these discussions.
The Garda is in the process of installing £26 million worth of "computer and telecommunications equipment under its PULSE information technology programme. Within a few years police "walkie talkies" could be replaced with hand held data terminals through which gardai could seek information on suspects or stolen cars.
Esat Digifone would be expected to pay a lease for the use of Garda radio masts. The going rate for such a lease is between £3,000 and £5,000 annually, making the Garda radio mast system worth £3 million a year or possibly more.
A source close to the negotiations yesterday described it as a technology transfer arrangement rather than a commercial deal.