Dáil debates

Tuesday, 29 November 2005

Adjournment Debate.

Telecommunications Services.

8:00 pm

Photo of Cecilia KeaveneyCecilia Keaveney (Donegal North East, Fianna Fail)
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I raise this matter to find out what information technology supports have been or are intended to be given to a company in my constituency, Forward Emphasis Limited. I am glad the Minister of State at the Department of Enterprise, Trade and Employment is present. He is aware of the serious decline north-east Donegal, especially Inishowen, has suffered with the decline of the textile industry. The Minister has been active in trying to find solutions to this problem.

I was attending the British-Irish Interparliamentary Body when I received an e-mail about this matter. The body was discussing developing jobs and infrastructural links between Ireland, Northern Ireland and Scotland, with particular emphasis on my constituency. The e-mail notified me that my constituency was possibly going to lose another company. Immediately I asked to raise the matter in the House and I thank the Ceann Comhairle for permitting me to do so.

In north Inishowen a company operating as a call centre and occupying a former Fruit of the Loom factory is in urgent need of fixed line broadband technology, such as ADSL, to satisfy its clients' expectations and requirements. Private telecommunications operators are able to satisfy the needs of companies in Inishowen by providing sophisticated services. I was therefore surprised to learn that Forward Emphasis, a company that has given indications of doing well financially in its venture with a substantial turnover, has this week publicly stated that it has not been able to secure the appropriate technology it requires to operate effectively. The company has not been given support by local government and employment bodies in order to do so. This leaves a question mark over its ability to continue in Malin Head.

It is my understanding that Eircom, which formerly held a monopoly on technology such as ADSL, were some months back in a position to satisfy the company's needs. There would clearly be a cost for such sophisticated technology, which I believe was in the region of €60,000 or €70,000, although I am open to correction. The lead-in time was approximately two months. I am aware from my time on Donegal County Council and since that the council has given significant support to Forward Emphasis, not only in selling them premises at a keen rate, which the council purchased following the closure of Fruit of the Loom, but in offering grant assistance for a three-month period to assist the broadband proposal.

Other providers are entering the market and delivering fixed line broadband services into centres with minimum requirements regarding population density. However, this is taking some time, particularly in rural areas. Not everybody in towns with the population requirement can be connected. To be connected, a customer must be located within 3 km as the cable runs from the enabled telephone exchange. Often people situated immediately beside the exchange cannot avail of the technology because of the way the cable was initially laid in the ground by Eircom.

The Inish Times, a company which is growing rapidly in Buncrana and has a circulation of between 5,000 and 6,000 copies, is highly dependent on technology. It had to install wireless broadband as it is currently connected to the old exchange, and fixed line broadband is connected to the new exchange. It has missed out despite the fixed line running approximately 500 yds from its building.

There is considerable cost in installing the equipment to a telephone exchange in order to enable ADSL. A fundamental question arises of whether we want rural employment. Information technology is meant to be the way forward for rural areas. This is what was argued after the demise of the textile industry, and it was argued that location did not matter if a business had the requisite IT infrastructure.

With specific regard to Forward Emphasis, I have worked on behalf of the company for many years on several issues. I have lobbied the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, on the company's need for fixed-line broadband. In the interim, the broadband provider involved in the roll-out of the community broadband initiative e-Hotspot has offered to facilitate Forward Emphasis by offering the company a free three month trial of a satellite system. This has come about through the local IRDL Leader company and the consultant it appointed to deliver the community broadband initiative. There have been some delays in getting this operational because of the company's wish to upgrade the size the dish involved. It is already in the process of being enabled. I hope this will provide an interim solution to the company's requirements.

Is it possible for fixed broadband to be installed in Malin Head to assist this company, or for the company to be connected to the metropolitan area network planned for Carndonagh? The Malin Head coast guard and the meteorological stations located there may benefit from this type of technology. I ask for State agencies to mentor this and other companies in the area, if this is not already happening, to ensure that needs are met, including broadband requirements. I request that issues raised be taken on board by the interdepartmental group with regard to what I hope will be a successful venture for Donegal, and particularly my area.

These outstanding issues must be embraced in any plan formulated from the working group. We must be told what the issues are and have solutions. I do not wish to read of more job losses in my area. If supports can be provided, or if supports have been given that could remedy this issue, I would appreciate the Minister's assistance.

Photo of Tony KilleenTony Killeen (Clare, Fianna Fail)
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I thank the Deputy for raising this matter and acknowledge her tireless efforts and representations on behalf of workers threatened by redundancy from Fruit of the Loom and other companies.

Forward Emphasis is an outsourced direct marketing services company for financial, government, charity and not-for-profit sectors in the UK. The company is located in Malin, County Donegal, and employs approximately 40 people full time and 60 people part time. In December 1999, Enterprise Ireland approved support for the set up of the company and to date has paid a total of €272,994 in supports. The company commenced operation in late 2000. I understand the promoters established a sister company, Forward Emphasis Limited, in Belfast which provides similar services.

I assure the Deputy that the full range of Enterprise Ireland's supports are available to Forward Emphasis. These supports include strategy development, production and operations, marketing, human resources development, finance and research and development. In addition, a wide range of support and knowledge is provided by specialists in Enterprise Ireland offices in Ireland and through its 33 offices worldwide. This independent support involves a range of services including identifying new opportunities, providing technical knowledge and expertise, providing market and technical information and promoting to clients both in Ireland and overseas.

As regards the issue of broadband, I understand from my colleague the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, that the provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully liberalised market, regulated by the independent Commission for Communications Regulation, ComReg. Market forces and the availability of suitable infrastructure and backhaul will determine whether a company offers broadband in any area. A principal reason for the slow roll-out of broadband services generally has been the lack of investment by the private sector in the necessary infrastructure to deliver broadband to all areas.

I am advised that the Department of Communications, Marine and Natural Resources is addressing the infrastructure deficit by building metropolitan area networks, MANs, in 120 towns and cities nationwide, in association with the local authorities, using Government and European regional development funding under the National Development Plan 2000-2006. MANs have already been completed in Gaoth Dobhair and Letterkenny, and MANs for Buncrana and Carndonagh are at the planning stage. I understand, however, that officials from the relevant Department have recently met with representatives from Donegal County Council as well as local interest groups and are currently examining a number of further options.

More generally, the Deputy will be aware that there have been significant job announcements in Donegal recently, with over 210 new jobs announced recently by Zeus Industrial Products, Letterkenny, and PowerBoard, Burnfoot. These projects are being supported by the Industrial Development Agency and Enterprise Ireland, respectively. This was in addition to 423 jobs announced earlier this year by the Minister, Deputy Martin, for the north-west region. I assure the Deputy that the State development agencies, IDA, El, FÁS and Donegal County Enterprise Board, are fully committed to supporting and promoting job creation and job retention in Donegal. In addition to recent job announcements, this commitment is also evidenced by ongoing development and support by the agencies for a number of business parks and enterprise centres in Donegal. These include the completion of the IDA Letterkenny business park, the provision of a 25,000 square ft. advance office building at Windyhall, the completion of site development work at Ballyshannon for a new facility and also a development at Buncrana, where the IDA is working with a local developer to provide new manufacturing and office buildings.

In addition to providing support for nine community enterprise centres in Donegal, Enterprise Ireland has also provided substantial support for the expansion of the Letterkenny Institute of Technology business development centre and the development of a marine biotechnology centre. However, it is also recognised that there have been significant job losses in Donegal in recent years, which is why the Minister for Enterprise, Trade and Employment, Deputy Martin, has visited Donegal twice since becoming Minister. He has met, in conjunction with the Deputy, many groups and companies on these visits to discuss both the county's difficulties and positive developments. The Deputy will be aware that the Government also recognizes the particular difficulties in Donegal and will be working together to assist in improving the overall environment to increase the attractiveness of Donegal as a location for enterprises. In that context, the recently established interdepartmental group on Donegal, chaired by the Secretary General of the Department of Enterprise, Trade and Employment, has been asked to report back to my colleague, Deputy Martin, as a matter of urgency.

I assure the Deputy that tackling the difficulties in Donegal is a priority for the Government and my colleague, the Minister for Enterprise, Trade and Employment, Deputy Martin.