Dáil debates

Tuesday, 26 February 2008

7:00 pm

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)

I welcome the opportunity to address this positive motion. This side of the House has long been lectured, in particular by the Tánaiste and Minister for Finance, Deputy Cowen, who today stated Fine Gael is "policy bankrupt". Nothing could be further from the truth. I will not go over the figures quoted already but 17% penetration is extremely poor. This motion has a target of 100% penetration at 3 megabytes. This would be a major benefit for our economy.

Our economy's survival depends on competitiveness, which we need to align with a knowledge-based economy. In the past our corporation tax rate was a major benefit. Our low wage base was sufficient in attracting foreign direct investment. Now, however, we have high wage structures and our corporation tax is less attractive. Many of our economic competitors are not Third World countries but European, such as Austria and Switzerland. Switzerland offers a zero rate of corporation tax to multinational companies willing to locate there. Compared to what is available in this State, we are a long way behind.

When these difficulties with higher wage structures and declining corporation tax benefits are aligned with poor broadband services, Ireland becomes a less attractive location for multinational companies and foreign direct investment.

Deputies Joe Carey and Feighan referred to the MANs, the second phase of which the Minister must re-examine. Some 88 towns were to be connected under this phase. County Wexford, one of the largest counties in the State, with 140,000 inhabitants, will only have one town connected in this phase. Gorey, Enniscorthy and New Ross, three towns with over 10,000 inhabitants, will have no connection to the MANs. Will the Minister and his officials examine what has gone wrong with the scheme? Why do Ennis, Enniscorthy, Gorey and many other large towns not have the opportunity to attract investment in companies, such as call centres, through the MANs scheme?

Many press reports have referred to chief executive officers of multinational companies being embarrassed by Ireland's lack of broadband availability and speeds, particularly the experience of E-Bay's chief executive officer. I was informed by the chief executive officer of a County Wexford company, which employs 200 people, that whenever an e-mail comes into his company, he gets a telephone call and he then must go to an Internet cafe to download it. This company pays corporation tax, PRSI and other taxes and brings much benefit to the county. The Minister must recognise this is not good enough.

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