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Storm over plan to sell off Gibtelecom
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The Opposition says it notes with concern the reports that the Gibraltar Government has now confirmed that it is considering relinquishing its 50% stake in Gibtelecom and will be making a statement on this issue "to remove uncertainty" later in the year.
The reports suggest that the Government has already been involved in taking soundings in the international market. Given that Gibtelecom has been consistently profitable the decision to sell must therefore be driven by a desire to realise cash value from Gibtelecom arising from a need to bolster Government coffers.
An Opposition statement adds: Quite apart from the fact that given the present economic downturn it is unlikely that this asset will be sold for anywhere near what it could achieve in better financial circumstances, the Opposition believes that this amounts to the GSD selling the family silver.
Moreover in making the sale the Government would lose all control of the telecoms company (which already produces a very healthy annual return for Government) and over the terms and conditions of employment of all those employed therein. The Opposition considers it is important that the Government should continue to hold a 50 per cent stake in essential utilities which were previously government owned in order to ensure that it can guarantee delivery of the relevant service and the terms and conditions of employment of all those who work in those industries.
Commenting on the alleged proposal, Shadow Minister for Telecommunications, Fabian Picardo, said: "We are totally against the sale of the Government's 50% share in Gibtelelcom. With the Gibraltar economy so heavily reliant on internet gaming and call centre activity it's important that the Government should remain a player in telecommunications both because of the sector's continued profitability and in order to protect the jobs and terms and conditions of those who work in this industry. This is not a measure that will enjoy cross party support. We remain committed to Government part ownership of the main telecommunications provider on the Rock. I intend to raise this matter in the next question time in Parliament."
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