Allowing only one stockbroker to sell shares held in the Telecom Eireann nominee account is wrong, according to Labour spokesman on finance, Mr Derek McDowell.

Only AIB subsidiary Goodbody Stockbrokers is allowed to sell shares for people with nominee accounts. According to Mr McDowell, this has come as a surprise to many shareholders and is proving to be greatly inconvenient.

"Around one-third of shareholders have chosen to avail of the nominee account option and these people now find they are effectively locked into a cartel deal negotiated by the Government," Mr McDowell said.

Anyone with a nominee account cannot stipulate a price level for selling the shares. On top of that, they cannot bring the account to another broker to execute the sale. Rather, other brokers selling shares for people with nominee accounts must fax Goodbody with the details and thus neither the broker nor the client knows whether, or at what level, the deal was executed.

Goodbody will inform the broker after the sale has been executed and in a liquid market that could be as quickly as one hour later, a spokesman said.

Mr Paul McGowan, joint managing director at Dolmen Butler Briscoe, said the firm is advising its clients to sign a form allowing their nominee accounts to be changed to share certificates. It is also understood that many of the other brokers formally complained to the Government about the structure. A spokesman for Goodbody said previous privatisations, such as Norwich Union and First Active, had also specified a single broker. But, according to Mr McDowell, it is "ironic that a move which is meant to herald competition and greater choice to Irish consumers is being channelled through a structure where one company has been granted an immensely valuable monopoly by the Government".

He added that it was a serious error on behalf of the Government and it was the new shareholders in Telecom Eireann who would lose out.

Most members of the public who bought shares will be unable to sell them until they receive their share certificate or their nominee share account statement.

These are being sent out next Wednesday, so it will be the latter part of next week before most of the private shareholders can deal. A small number, who have an established relationship with a stockbroker, may be able to trade already.