Phone rental price increases announced last month are likely to cost the State almost €140,000 extra a year, according to information revealed in Dáil questions.
However, Eircom is sponsoring Ireland's EU presidency telecommunications needs at a cost of between €2 million and €2.5 million. The Minister for Foreign Affairs, Mr Cowen, pointed to the Eircom sponsorship in his reply to a written parliamentary question from Mr Dan Boyle, the Green Party's finance spokes- man.
The Cork South-Central TD had asked each Government Minister the anticipated increase in phone costs after the 7.5 per cent rise in line rental prices.
Of 13 Government Departments for which information was given, the Department of Social and Family affairs faces the biggest hike. The Minister, Ms Coughlan said the anticipated annual increase was €56,000.
The Department of Community, Rural and Gaeltacht affairs will face the least impact with a monthly increase of €33.46 plus VAT according to the Minister, Mr Ó Cuiv.
The bill for the Department of Foreign Affairs will be about €6,000 and Mr Cowen said that the Department continually monitors the cost of telecommunications and examines "on an ongoing basis, the means to bring about savings in this regard. It should be noted that Eircom is one of the major sponsors of the Irish presidency and in this capacity, is providing telecommunications services to the State for the Presidency to the estimated value of some €2 million to €2.4 million." The Department of Communications will pay about €9,422 extra a year, while the Transport Department phone costs will rise by about €1,800 a year plus VAT. The Department of health's bill will increase to the tune of €2,700 a year.
The Minister for Justice said such information could only be compiled by the "diversion of substantial staff resources from other important work", but Mr McDowell stressed that the "line rental element of my Department's telephone payments would not constitute a significant increase in the context of the overall expenditure on telecommunications".
