A CLAIM that Telecom Eireann would shed a total of 5,000 jobs was dismissed by the Minister for Transport, Energy and Communications.

Mr Dukes was responding to the Fianna Fail spokesman on communications, Mr Seamus Brennan, who noted the plan to reduce the workforce by 1,200. Mr Brennan added that there been an understanding that 5,000 jobs would be lost before the "Government decided to give away a large chunk of this company to overseas investors".

He challenged the Minister to say if that level of job losses was involved in the deal and if it would become a reality over the next year or so.

"It is no part of my function," replied Mr Dukes, "to assist Deputy Brennan in this kind of outrageous scare tactics that he is involved in."

Earlier, the Minister said Telecom Eireann had reduced jobs by 2,200 during the last period when Fianna Fail was in office. The process of transforming the company to deal with a competitive market environment would inevitably involve a reduction in staff numbers.

The process was working extremely well, he added. "Telecom Eireann is now becoming a far more competitive company than it was before. It is reducing the telecommunications cost base of the economy, which is part of what has employment growth at a much higher level and a more rapid level over the past 2 1/2 years than we had seen for a very substantial period beforehand."

Mr Dukes said the drive towards greater efficiency in the company had taken on an added urgency in recent years due to rapid developments in technology and the advent of full open competition in the telecommunications market on January 1st, 2000.

"The transformation of the company, which is already under way, must be accelerated if it is to survive and prosper in the new competitive environment. The company must continually improve its customer focus, service quality and cost profile. The company has set an objective of reducing pay costs by one third or £110 million over the coming four years."

In January, Telecom Eireann had sought his approval for the introduction of general, company wide early retirement voluntary severance schemes over a two year period from this month to March 1999, and approval had been given last month. The schemes were launched by the company on March 3rd.

"Telecom Eireann must improve efficiency and productivity. A scheme of this kind would be required whether or not the company entered into a strategic alliance deal."

He said he was not aware of any other severance scheme under consideration in the company. "It will be a matter for the company to assess in due course the impact of the current schemes on its cost reduction targets."