Liz McManus (Wicklow, Labour)

It is simply for the record.

I welcome the Private Members' motion. This debate could not be more timely. Today's analysis by the ESRI shows that we are now suffering the worst recession of any advanced country since the 1930s. Working our way out of this crisis will require leadership and radical thinking. We live in a fast-moving world especially in the communications area and we must ride the tiger if we are to catch up with other countries who have developed vital infrastructure. If Ireland is to maintain high productivity and to compete internationally as an open economy with the highest services exports per capita in the world, we must become leaders rather than followers. Broadband provision, next generation networks and high quality education are key drivers of economic growth. To be competitive we must be among the best. In 2003 this was acknowledged when the then Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, committed to placing Ireland in the top 10% of OECD countries for broadband connectivity within three years.

The harsh reality is that since then Fianna Fáil failed this country terribly in many ways. It failed to regulate the banking sector, drove up the property bubble until it burst and failed to deliver on broadband. Today Ireland lies 22nd out of 30 countries and is floundering near the bottom of the league. Universal access to good quality, good value broadband is critical, especially for the small and medium sized enterprises sector. We must also make the shift towards next generation networks. However, at the basic level of clearing the bottlenecks for operators trying to access existing ducts to deliver new services, there is no mechanism in place to make progress.

Smart Government is required in these challenging times but too often it seems that silly Government is what we get. Instead of strategies to tackle unemployment, we get squabbles in the Fianna Fáil party aired on "The Late Late Show". It is not simply a result of one party in power. It is a silly Government that sets up yet another quango at a time of such stringency. However, because the Minister, Deputy Eamon Ryan, refuses to address the matter or change policy, we will have two communications regulators which make no sense when one regulator would do the job better. This is especially the case when the roll-out of digital terrestrial television, DTT, has received a severe blow with the recent withdrawal of the Boxer consortium. Last August the Minister, Deputy Ryan, was standing over a commitment that 80% of Irish households would have switched to DTT by the end of 2009. Now, we learn that no contract was signed, Boxer has walked off the pitch and the entire programme is in disarray. Inevitably there will be a delay — whether long or short we do not yet know — in taking what the EU Information Commissioner described as a once-in-a-lifetime opportunity that could, if properly managed, deliver new services in a new digital Ireland. We should be enjoying the prospect of a digital dividend, but instead we have been landed in another fine mess which is not good news for a country with rocketing unemployment.

Where do we go from here? In a recent report from Forfás the challenge is clearly set out. It states, "Ireland's current telecommunications industry structure, infrastructure and market characteristics make the timely availability of next generation services very unlikely unless Government plays a strong role in progressing the range of actions necessary to ensure that advanced services become available in Ireland no later than they become available in leading EU countries." Smart Government is vital for our future. Nowhere is this more pressing than in the case of Eircom. Much of our difficulty results from Eircom's current situation as a private company poorly managed and loaded down with debt. That an offer could be made for Eircom of a paltry €95 million reflects its sorry state. If another sale goes ahead it would be the fifth change of ownership since the ill-thought out privatisation under Deputies Bertie Ahern and Mary O'Rourke was announced to great fanfare.

We are all aware that availability of broadband is of critical importance for our economic recovery. The Government simply cannot sit back and do nothing as Eircom is sought for sale at a bargain basement price. The role of Government is crucial in this case. It can develop an ownership structure for Eircom which combines commercial agility with a strong public interest mandate. Now, the key issue is not how to return to some old style State ownership model reminiscent of the days of the Department of Post and Telegraphs, but how to establish Eircom as a public interest company. Several options for involvement by the State exist outside of full nationalisation. These include a strategic partnership for the State with a strong European telecommunications company.

Whatever arrangement is devised we need a structure that will ensure ongoing investment in this vital infrastructure; ensure that broadband is universally available; provide access to that infrastructure for new operators; and provide a good level of consumer protection. It must also ensure that the infrastructure and operators keep pace with latest technologies and adhere to the central principle of serving the public interest and help restore competitiveness.

We have seen how semi-State enterprises such as ESB and Bord Gáis Éireann have adapted to changing circumstances while maintaining and developing essential utilities. There has been a sea change in ideological terms whereby in the past competitiveness was often sacrificed in the interests of competition. As a result for a long period we have had unduly high utility costs which have created problems in terms of Ireland's competitiveness. However, a sea change has taken place and there is now a greater understanding of what is required for a country with a small critical mass such as ours. There is a recognition that the role of the State can be very proactive and productive and the models of semi-State enterprises exist from which we can learn. The investment in the national grid and the recent announcement by the ESB of up to 6,000 new jobs and training opportunities is very significant and we all support it. It shows the benefits of exploiting new technologies and new sources of renewable energy for electricity production.

Clearly, the emergence of new technologies presents us with great employment opportunities. They also provide opportunities for more sustainable ways of working. Today in the Joint Oireachtas Committee on Climate Change and Energy Security we heard examples of such changes which showed that with good information technology it is possible to have a greater level of home working, flexibility in the workplace and cost savings as a result. The recasting of the national development plan with a strong pro-jobs focus as proposed by the Labour Party would be a good first step towards delivering the change we desperately need if we are to become a leading digital and knowledge country.

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