The Tanaiste, Ms Harney, has secured an undertaking from the Taoiseach, Mr Ahern, that the "utmost transparency" will apply to the granting of State telecommunications licences in future and to the sale of State assets.
In particular, the Fianna Fail leader agreed that a memorandum setting out the options available to the Government and providing details of the companies involved in the bidding and their plans would have to go before Cabinet before any decision was taken.
A spokesman for the Progressive Democrats said that no memorandum had gone before the Government before Mr Ray Burke granted licences for the MMDS deflector system to Princes Holdings, which is part-owned by Independent Newspapers, in 1989. There was a similar failure before Esat had been granted its telephone licence by the former Fine Gael minister, Mr Michael Lowry.
The Government has announced its intention to sell Cablelink later this year. And the Minister for Public Enterprise, Ms O'Rourke, is preparing for the public flotation of Telecom in 1999. In addition, Ms Harney's own Department of Enterprise and Employment is expected to sell its 51 per cent stake in Irish Fertilisers for about £50 million.
Details of the Government's medium-term plans in relation to the commercial State sector are likely to be outlined by Ms O'Rourke tomorrow when she addresses a conference in Dublin. Apart from the sale of Cablelink and Telecom, other State companies are being prepared for participation in joint ventures, such as TEAM Aer Lingus and Aer Lingus itself, while Aer Rianta will be transformed into a private limited company before flotation on the stock exchange.
The guidelines and procedures to be followed in these instances will be "open and transparent", according to a senior Government source.
A spokesman for the Progressive Democrats commented: "Whatever system is put in place will have to be above reproach and above questioning. There is a need for the utmost transparency in all cases where assets are disposed of, or State licences are granted. The Taoiseach has given a commitment that, where anything of this nature is concerned, a detailed memorandum will come before Cabinet."