asked the Minister for Communications the rate of return on investment which he allows in deciding the acceptable level of charge for cable television; and if the possible sale of Cablelink will alter this practice.

5.

asked the Minister for Communications whether RTE will be under any departmental stricture in the deployment of funds from a successful sale of Cablelink.

6.

asked the Minister for Communications if RTE sought the sanction of his Department for their decision to seek offers for their subsidiary. Cablelink; if, in view of their strategic and economic importance he will request RTE not to proceed with the planned sale of Cablelink, or take steps to ensure that it remains within the public sector; and if he will make a statement on the matter.

I propose to take Questions Nos. 3, 5 and 6 together.

My sanction was not required for the decision by RTE to seek offers for the possible sale of Cablelink Ltd. If RTE and the minority shareholder in this company decide to sell, any new owner of the system will require to be licensed under the Wireless Telegraphy Act. The benefit of the existing licences issued to Cablelink cannot be transferred without my consent.

At this stage I see no useful purpose in interfering with the exercise which is designed to enable the company to make a decision on whether a possible sale is in the best interest of RTE. I am also of the view that it would be premature to comment on the deployment of any funds that might be generated in the future by a possible sale of this company.

The possible sale of Cablelink will not alter the current practice in determining levels of charge for cable service. Each application for a price increase is dealt with on its individual merits. I take a number of factors into account including the interests of subscribers, rate of return on investment, profits, cash flow, projected investment, costs, age of system, company policy and plans, and my policy of encouraging the enhancement of cable systems.

Did any discussions take place between the Minister and RTE in advance of the process being initiated to look at the feasibility of selling off Cablelink? If so, did these discussions include any indications of the shortfall in funds that might be available to RTE in the future with regard to the replacement and improvement of their equipment and the development of the service?

I was informally notified of the intention of RTE to seek offers for the possible sale of Cablelink which is merely a possibility at this stage; they are testing the market rather than coming with specific indications of intention to sell. The want to see what the marketplace will produce. On the question of the deployment of funds, it would be totally premature to comment in regard to any funds that might be generated in the future.

Has a case been made to the Minister by RTE for funding to deal with the replacement of equipment and the development of other new services? In the course of negotiations between RTE and the Minister, did the Minister advise them that they should look to their own stock first and in particular to the possible sale of Cablelink?

That is not correct. In the Estimates published the other day there is capital funding available to RTE for capital projects, including a new library for RTE.

But not anything like what they need.

There is never enough for what anybody needs, particularly an organisation with so many changes in technology. However, within the limits of the finances available to the State we have given an allocation to RTE which will be sufficient to meet their legitimate requirements in 1989, and every year is considered on its merits.