Bertie Ahern (Dublin Central, Fianna Fail)

I have listened to the arguments of businesses on the matter of broadband. There are now 800,000 broadband subscribers in the country, including 90,000 mobile subscribers. At the end of September last year, that represented an increase of 81% on the previous 12 months. We may have had a slow start with broadband but it is clear that the market is growing rapidly. If we maintain the progress, it will become a strong market. Broadband penetration is 18.4 subscribers per 100 of the population, including mobile subscribers, not 15. We have narrowed the gap between Ireland and the OECD average dramatically. At the end of the third quarter of last year — the latest figures available to me — the OECD average is 18.8 and our rate, including new mobile subscriptions, is 18.4. Broadband is widely available at €20-€30 per month as the combination of competition and regulation is driving down prices. The most recent figures show us having the fifth cheapest entry levels for DSL prices in the EU 15.

In respect of telecommunications and broadband, where the markets fail, Government must act. I accept that and over recent years we have faced tough, risky decisions on telecommunications infrastructure. In the late 1990s, we recognised the need for fibre optic and the Internet cable connectivity between Ireland and other major international business centres, including the US, Europe and the Pacific Rim. We have been widely praised across industry and other groups for the investment made in 1999 in the global crossing and the connectivity project. I am sure Deputy Kenny has heard this praise. Although we were heavily criticised at the time, the analysis now is that it was an enlightened decision and the correct one.

It has been clear for some time that the private sector has failed to invest at the level necessary to keep pace with the demand for broadband. I have had meetings with the entire industry over the past few years. We made this clear to them and brought members of the industry together so that we would not get into playing one off against the other. I do not care who makes a profit — I just want them to do it.

I accept the point made by Deputy Kenny about speed. Speeds are improving everywhere and we must do the same. If they invest in this, they can do this very quickly. Direct funding has been provided under the national development plan for the backbone infrastructure. The regional broadband programme of the Department of Communications, Energy and Natural Resources is addressing the infrastructural deficit by building high speed open access broadband networks in association with metropolitan area networks. The House is familiar with that aspect. A further 66 towns are scheduled to be completed by the end of this year, on top of those completed in the first phase of the programme.

Despite Government and private investment in broadband, it is recognised that there are areas of the country where the private sector is unable to justify the commercial provision of broadband connectivity. They make no bones about this when they tell me. The new broadband scheme will target the last 10% of the population who would remain without a broadband service without direct State intervention. When fully rolled out, all reasonable requests for broadband from houses and premises in unserved rural areas will be met. The procurement process for a new national broadband scheme is now in the competitive dialogue stage, with three short-listed candidates. The estimated timescale for the award of the MBS contract, about which I asked last night, is the summer. The roll-out of the service is due to begin as soon as possible, subject to agreement with the chosen provider. I understand there should not be a long delay in getting on with that. I suppose that means work will continue into next year but it will begin as soon as we have an operator.

I am also aware that the development of a world-class telecommunications sector is important for economic growth and the prosperity of the country. Deputy Kenny made that point. The migration to and the development of the next generation network will provide the necessary platform for the telecommunications sector. The migration to the next generation network is being considered by service providers and will generate many issues with wide implications for regulation, competition and investment in service delivery that need to be addressed. I am keen to see all stakeholders working together to ensure that Irish businesses and consumers have choice and that competitive products are offered. ComReg has established a next generation network forum and is working in partnership with industry.

The next progression for next generation networks is being considered by the Minister, Deputy Eamon Ryan. His policy paper will be published next month. It will examine market developments and consider the optimum role for Government in the progression shift to IP-based next generation works. When that paper comes out it can be debated and discussed. That is an important paper for the next generation.

What is happening is good. We are rapidly catching up after a slow start. The last 10% of the national broadband scheme should be rolled out from this summer. The paper on the next generation networks, which is to engage the industry, will also be produced.

Deputy Kenny will appreciate that we made the right decision on schools in the last national development plan. It was my view that even though there might be a slowdown in the international economy we should not slow down the capital programme so we went the other way. We have an enormous capital programme for the six-year period of the national development plan. We are now in an investment position that is higher than that in any of the European countries. My belief on that is that this was the right thing to do because of an increase in population and because of the traditional deficit. This year alone we will spend €8.4 billion on investment and schools will get their fair share of that. Across the NDP we have pushed the boat out to the upper levels of investment, which is the first time it has ever happened in this country. Traditionally, in every decade we tended to retract in more difficult periods.

Last year in one form or another there were 1,600 school projects. There are 4,000 schools in the Republic so there will always be pressure for extensions. What happened this year was due to a rise in population in certain areas that was not known about as we used to know it based on the figures. What happened in Balbriggan this year was that those people did not show up on the register, which is quite extraordinary. There were more than enough school places but approximately 300 children turned up that were not known about. The same will happen next September. Tracking where these problems will show up is a big issue. That is a demand and it is taking up a large amount of resources from education where we are spending €600 million on a capital programme.

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