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Telecoms Privatisation - Economic Affairs - Approved Sub-Panel Minutes - 14 November 2007

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Economic Affairs Scrutiny Sub-Panel (Telecoms Privatisation)

PUBLIC MEETING Record of Meeting

Date: 14th November 2007

Meeting Number: 16

Present Deputy G. P. Southern , Chairman

Deputy J.G. Reed

Deputy G.C.L. Baudains

Deputy J. A. Martin

Apologies

Absent

In attendance Mrs. E. Kingston-Walsh, Scrutiny Officer

 

Ref Back

Agenda matter

Action

1.

Minutes

The Sub Panel approved the minutes of the meetings dated 12th and the 19th October 2007.

 

2.

Matters arising

The Sub-Panel noted the decision of the Minister for Treasury and Resources to delay the debate on Proposition P.153/2007 JT Group Limited: Proposed Sale.

 

3.

Senator Shenton's Amendment

The  Sub-Panel  considered  the  Amendment  to  Proposition  P. 153/2007.  The  Chairman  recalled  that  Finland  favoured  a tranched sale approach and still retained a share of Sonitel. The Sub-Panel noted that the Amendment excluded table two of the Proposition. It further considered the need for the Sub-Panel to draft a further amendment.

 

4.

Response from Professor Massimo Florio

The  Sub-Panel  received  the  response  from  Professor  Florio

dated  2nd  November  2007  and  the  accompanying  document titled "Telecom Italia 1997-2007, A Case Study in Privatization

Failures" by Professor Florio.

 

5.

Legal advice

The Sub-Panel noted the questions for legal advice from Hanson Renouf .

 

6.

Advice request of Professor David Parker

The Sub-Panel noted Professor Parker's reluctance for further involvement due to his work with the Telecoms Steering Group. It further noted that he would consider the technical aspects of the examples given in Annex 5.4 of the Proposition and that he had advised the Chairman to contact Ofwat regarding Northumbrian Water and their experiences of controlling gearing.

 

The officer was directed to take the appropriate action. EKW

The Sub-Panel considered the relationship between tax liability and levels of gearing.

7. Timetable

The  Sub-Panel  considered  that  it  should  provide  a  formal response to P.153/2007 before the debate on 15th January 2008.

It  further  considered  that  the  response  should  be  completed before Christmas.

Signed Date: ..

Chairman

Economic Affairs Scrutiny Sub-Panel (Telecoms Privatisation)