asked the Minister for Communications if he favours a liberalisation of the supply of all telephone terminal equipment and value added services; if he favours the retention of a Telecom monopoly in any part of these areas; and if so, where.

I presume the Deputy means by liberalisation that terminal equipment can be supplied without restriction by those holding licences under the Postal and Telecommunications services Act, 1983. The supply of telephone terminal equipment is virtually fully liberalised. Telephone terminal equipment, including telephones for the EIRCELL cellular radio system and extensions for connection to a private automatic branch exchange, may be supplied by licensees. The only equipment not fully liberalised are other types of telephone sets and BTE have an exclusive licence to supply these.

In regard to the supply of value added services this is a rather complex question which is currently being studied in my Department. While it is likely that competitive supply of some such services will be permitted it is too early yet to say how the provision of these services will be regulated.

In deciding on future licensing policy in relation to the supply of telephone sets and on the regulatory regime for the provision of value added services my aim will be to ensure that any monopoly role given to Telecom Éireann will be no more extensive than is required in the national interest.

In respect of the equipment which continues to be available from Telecom Éireann only, is the Minister considering liberalising that area? If not, would he indicate why he believes the monopoly should be retained?

This is a sensitive area. I would ask the Deputy to be considerate of the reply. We have two suppliers of this equipment providing good employment in this country, in Athlone and Galway. The position is that we are happy with the equipment with which they supply us.

In the cases where the monopoly is retained has the Minister set performance targets for the company at this stage in these areas of their operations? Has he examined their competitiveness with overseas operations of a similar type so that he can inform himself on the cost-effectiveness of their operation?

Telecom Éireann have their targets, and have had since their formation. They are doing an excellent job. This year — across the board — will be the first year that they will have turned the corner and shown a profit. I am satisfied that they are reaching their own targets in all areas.

My question refers specifically to the matters raised in this question, the value added services; it does not refer to the overall operation of the company. But, if the Minister is to assess the subject matter of this question, surely he would need to examine their performance and ascertain how competitive they are vis-a-vis their overseas suppliers with whom they must compete?

As I said in my initial reply the question of the value added services is under review. The points made by the Deputy can be taken into account in the course of that review.