Dáil debates

Wednesday, 24 October 2012

Prospects for Irish Economy: Statements (Resumed)

 

4:35 pm

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour) | Oireachtas source

Turning to more specific actions, the widespread availability of high speed broadband is a key requirement in delivering future economic and social development. With basic broadband services now widely available, the challenge is to accelerate the roll-out of high speed services. The Government's recently published national broadband plan aims to radically change the broadband landscape by ensuring high speed services of at least 30 Mbps are available to all citizens and businesses, well in advance of the European Union's target date of 2020. Speeds of 70 to 100 Mbps will be available from the commercial market operators for more than half of the population by 2015. At least 40 Mbps and, in many cases, faster speeds, will be available to at least a further 20%, or possibly even 35% of the population, during the lifetime of the Government. A minimum of 30 Mbps will be available for every remaining home and business during the lifetime of the Government.

The initiative under way to equip all second level schools with high speed broadband by 2014 is transforming the learning environment. This will enable students to acquire and engage with the digital world which is so crucial to the modern economy. This infrastructure is critically important for business growth and development, as well as many other facets of modern society, including entertainment, education, e-health, and e-government. Apart from providing the infrastructure, it is becoming increasingly important to stimulate demand for broadband. In this regard, I intend to publish a national digital strategy by the end of the year. A particular target will be small enterprises and the small and medium-sized enterprises sector generally, with the aim of helping these firms maximise the opportunities available from building an on-line presence.

One of the immensely valuable aspects of today's digital switchover not much mentioned is the freeing up of important spectrum which will be auctioned and greatly enhance broadband quality. A figure of €185 million has been pencilled in to the national accounts for 2012. The spectrum auction to be conducted by the regulator could realise somewhat in excess of that figure, but it will take another month or so before we have an indication of the real figure.

Regarding the energy sector, it is clear Ireland is very dependent on imported sources of fuel. Imported fuel is subject to price volatility and there is a compelling security of supply case that we should develop the large renewable energy resources we have available here on the island. The fundamental requirement of being able to develop renewable resources at scale is to be able to access a much larger electricity market. In that regard, increased interconnection with the United Kingdom offers us the opportunity to access a much larger market which facilitates the development of our renewable energy industry. Renewable energy sources development on that scale will encounter technical, logistical, planning and environmental challenges. In meeting these challenges the potential opportunities could be very considerable for exports from Ireland and could provide real benefits and economic opportunities for the regions where the renewable resources are located.

Construction job opportunities will arise as new renewable energy resources generation plants are being built. Additionally, such generators are commercial businesses which would form part of the rate-paying base. At a time when local government finances are under pressure, such developments are and will be a long-term and stable source of income for local authorities. Typically, such generators would pay around €7,000 per annum per megawatt of installed capacity in commercial rates. Our aim is to create a low-carbon economy which will deliver benefits in terms of growth, innovation, competitiveness, job creation, energy security and environmental quality. Achieving these objectives will provide us with the opportunity to transform the economy and the regions.

Our energy infrastructure is crucial for our economic and social development. Our ability to attract and retain foreign direct investment and sustain enterprise depends on guaranteeing an energy supply at competitive cost. Rebuilding the economy, delivering regional development, creating jobs and growth, as well as realising the economic potential of our renewable energy resources, will all be facilitated by investment in our energy infrastructure. Investment in the national networks will underpin economic development not just at the national scale but also regionally. Rural and remote areas particularly need stronger electricity infrastructure to provide the necessary facilities for economic activity.

On 18 July I published the Government’s policy statement on the strategic importance of transmission and other energy infrastructure. This policy statement reaffirmed the Government's commitment to the imperative need for development and renewal of Ireland's energy networks to meet both economic and social policy goals. The key elements of the statement are that the planning process provides the necessary framework for ensuring all necessary standards are met and that comprehensive statutory and non-statutory consultation is built into the process. It also acknowledges the need for social acceptance and the appropriateness of exploring ways of building community gain considerations into project planning and budgeting. It accepts delivering long-lasting benefits to communities is an important way of achieving public acceptability for infrastructure. It also provides that network companies are mandated to plan their developments in a safe, efficient and economic manner and are also required to address and mitigate human, environmental and landscape impacts in delivering the best possible engineering solutions.

The major investment under way in the high voltage electricity transmission system is under EirGrid's Grid 25 programme, the most important such investment in the transmission system for several generations. While the Government does not seek to direct infrastructure developers to particular sites or routes or technologies, it endorses, supports and promotes the strategic programmes of the energy infrastructure providers, particularly EirGrid's Grid 25 investment programme, across the regions. Such investments are very much in the national interest, not least in the current economic circumstances. It is crucial these investment programmes are delivered in the most cost efficient and timely way possible on the basis of the best available knowledge and informed engagement on the impacts, as well as the costs of different engineering solutions.

In addition to EirGrid's Grid 25 programme and other network and connection reinforcements, the network investment programmes by ESB Networks and Bord Gáis Energy in recent years have given us energy networks which have met the test of severe weather episodes and record peak demands. Ireland's energy networks compare very favourably with those in other countries in terms of safety and resilience. Continuing the steady level of development and renewal of the networks is essential to ensure Ireland's energy system is fit for purpose, safe and secure, and ready to meet increased demand.

Another critical issue in terms of security of supply, lowering costs and reducing our carbon footprint is energy efficiency. The Sustainable Energy Authority of Ireland administers several schemes under the better energy programme, including better energy homes, warmer homes and workplaces. Exchequer funding of €76.146 million has been allocated to the programme in 2012 which is projected to deliver 567 GWh, gigawatt hours, in energy savings this year, which would be the equivalent of an energy spend of €34 million. These measures have also supported a large number of jobs, alleviated fuel poverty and provided healthier and more comfortable homes and workplaces for thousands of people.

I am committed to the further development of our communications and energy infrastructure markets. This will play a key role in driving forward the wider economy and fully realising the recovery towards which we are all working. I regret none of my friends from Fianna Fáil is in the House. One of their young Members in the Upper House today tweeted that I had made a speech without mentioning them. Regrettably, I have had to repeat it here. However, I do not want them to take this as a guarantee for the future.

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