Oireachtas Joint and Select Committees
Thursday, 8 September 2016
Joint Oireachtas Committee on Communications, Climate Change and Natural Resources
Digital Single Market: European Commission Vice President for Digital Single Market
12:00 pm
Mr. Andrus Ansip:
We wanted to keep our tax system simple. Tax rates are at quite a low level. We practically did not set any deductions, exceptions or exemptions. It has to be simple, transparent and easy for everybody to understand.
On the Apple case, I do not think I am able to add anything new to the arguments that have been made available over the past week. I think the situation will be a little different when we publish this case. It is up to the Irish Government to push the button in that regard. The Commission is ready to do it right now. The Irish Government has to be absolutely sure that we will not make public any confidential tax or business secrets, etc. It takes time. More legal clarity will be really good. I am absolutely sure this case will provide such clarity for Ireland, the EU and the whole world.
I would like to speak about co-investment in access to high-speed broadband. I have already described our plans to attract investment to build up fibre networks in rural areas where population density is not high enough to attract such investment on the basis of today's rules. My understanding is that Ireland is moving in the right direction, as I said at the outset, but we have to turn the whole of Europe in the same direction. I would like to protect those first movers or first investors. Competition has to stay as a central principle, but in some cases we have to protect those who take huge risks. I will give an example. The service provided by the incumbent telecoms service provider in a town in one western European country was not good at all. The incumbent company was not prepared to improve the situation, so local investors decided to invest to create a better Internet service. The incumbent then decided that new competitors were not needed. Of course it had enough funds to kill the local initiative. I do not think that is fair. We have to find something to protect first movers. I repeat that competition has to stay as a general principle.
When we make our telecoms proposal in the coming weeks, we will set new goals, aims and objectives for the EU.
These include achieving gigabit connection for main social drivers and a 100 Mbps connection for all households, etc. Investment of at least €500 billion will be needed to achieve this objective. According to analyses, if we do not change our rules and try to attract more investment, there will be a gap. According to some concrete analyses, this will amount to €155 billion of the €500 million investment required. We have to at least try to cover this gap. As I stated, the European Commission's aim is the same as Ireland's aim. Ireland wishes to provide a high-speed network throughout the country and we aim to cover the entire territory of the European Union with a high-speed network.
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