Mr. Aidan Dunning:

I thank the Chairman and members. I will start with a general comment before getting into the specifics. It picks up a little on what Deputy Harrington said. The Government decided on a national broadband plan because there is an acceptance that there must be a step change in terms of broadband speeds and the quality of our broadband infrastructure. That is because there is a strong acceptance that it is key to economic and social development. I referred in my speech to the real and tangible improvements that have been made in recent years. One is seeing increasingly, in terms of foreign direct investment, FDI, that Ireland is proving to be a strong attractor in information and communications technology, ICT, and related areas where high level broadband connectivity is particularly important. The fact we have improved our infrastructure, primarily on the back of private investment, is a good indicator that we are on the right track, but much more needs to be done.

On the implementation of the plan and consultation and liaison with the industrial agencies, the Department spoke to the industrial enterprise agencies, Forfás and our Government colleagues about the formulation of the plan. There is general acceptance on their side that this is a good advance for IDA Ireland and Enterprise Ireland when it comes to selling Ireland in terms of us being serious about upping the game in the provision of broadband at that general level.

A key commitment in the plan is to address the perceived issue which is undoubtedly a fact, that there is a significant divide between urban and rural areas. Through the national broadband scheme and other competitive provisions, rural areas have access primarily to basic broadband, which is 1 Mbps to 2 Mbps. The plan gives a commitment that it will be 30 Mbps in every household, no matter how remote. That is a major commitment and it will take a little time. I can go into the intervention and how it will be done. Unfortunately, one cannot merely wave a wand so that it will happen overnight. This will be especially important, however, in terms of economic and social development and development of industry in rural areas.

That is the general backdrop I wish to outline in explaining why the Government has placed such critical importance on this issue. We spent a lot of time with the task force in putting this together and we consulted widely, both within the Government system and with commercial operators.

I hope we have found the correct balance in a context of straightened resources.

Deputy Moynihan expressed interest in the mapping exercise, which will be crucial to the Government’s intervention in this area. As we noted in the plan, it is clear that the industry is going to deliver a significant amount of high speed broadband. It is already doing so, with 150 MBps available to approximately 30% of the population, albeit in urban areas. Significant speeds are also available via private investment in other parts of the country. We have to use the resources available to us to ensure, as with all good policy making, that we target our investment at achieving the optimal outcome. The mapping exercise is important in this regard.

The exercise comprises two elements. First, it will ensure that whatever procurement results from it will be able to achieve the targets set out in the plan. That will require consultation with the telecommunication companies to understand their investment plans and subsequently mapping the country to identify the areas in which we need to provide infrastructure. Second, it will ensure optimal value for money for taxpayers in the procurement process. There is a third element involving approval for state aid, but I am confident we will manage this once we structure the procurement process correctly. Any intervention by the taxpayer of a member state has to receive approval from the EU.

We hope to complete the mapping exercise by next year. It is a major exercise covering the entire country, although we do not expect to begin in certain urban areas. As I do not want to get bound up in red tape and bureaucracy with the European Commission, we are going to proceed carefully and with expert advice. On foot of the mapping exercise we will devise a procurement process which will be open to all commercial operators and, from our point of view as guardians of the taxpayer’s money, will attempt to derive maximum benefit from the private sector contribution. Clearly, however, the Exchequer will also be contributing. We will use co-funding to meet, at a minimum, the targets set down, particularly in the second and third categories of small towns and rural areas. We do not yet know the level of State intervention required for the project but it will be sufficient to meet the targets while also providing value for money. The timeframe is realistic, as Deputy Moynihan noted.

In the context of the digital strategy, certain steps can be taken to increase demand for broadband, thereby helping the private sector to develop markets. By 2015 we will have made major progress on high speed broadband and our aim is to implement the remainder of our targets for smaller towns, villages and rural areas over the lifetime of this Government. These rural areas are largely covered by the national broadband scheme at present and are being upgraded to 2 Mbps or 3 Mbps in October 2012. We will commit to provide speeds of 30 Mbps in a few years’ time.

Deputy Colreavy asked about the State’s use of technology. He is correct that enormous benefits can be derived through the State leveraging the technology facilitated by good broadband connections. An e-government strategy has been launched by the Department of Public Expenditure and Reform, which has primary responsibility in this area. At European level we are regarded as relatively advanced with our e-government strategy but the digital divide once again comes into play. It is easier to access e-government with better broadband. There is potential for online provision in a range of areas, such as e-health and e-learning.

Reference was made to broadband in schools. Considerable work has been done by the Department of Education and Skills in primary schools but more work needs to be done on implementation of broadband in secondary schools because speeds at primary level are, understandably, not as fast as at secondary level. We also need to work with the third level sector. The State is proactive in leveraging technology and this will be part of the implementation process. Deputy O’Mahony also asked about broadband provision in schools. His constituency of Mayo is on this year’s list for the roll-out of services and by the end of the project a total of 278 second level schools will be able to access speeds of 100 Mbps. The 78 schools involved in the pilot project have been operating successfully for the past two years and we have been receiving positive feedback on their experience. This year we are rolling out broadband to 200 schools, most of which are located in the west and mid-west.