Olivia Mitchell (Dublin South, Fine Gael)
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Question 9: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to recent expressions to the effect that the State might regain some control of the Eircom infrastructure; if he has had discussions with any of the parties involved in this regard; and if he will make a statement on the matter. [13798/06]

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 10: To ask the Minister for Communications, Marine and Natural Resources if he or his Department has studied the possible implications of sale or takeover of Eircom; if he has had discussions with any of the parties involved with a view to ascertaining the future development of the infrastructure; and if he will make a statement on the matter. [13813/06]

Kathleen Lynch (Cork North Central, Labour)
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Question 34: To ask the Minister for Communications, Marine and Natural Resources the implications for Ireland's national telecommunications infrastructure if Eircom is taken over by investment group Babcock & Brown; if he has met Babcock & Brown, Eircom management and other stakeholders on the proposal; and if he will make a statement on the matter. [13613/06]

Dan Neville (Limerick West, Fine Gael)
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Question 51: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the suggestion that the State should regain control of part of the Eircom infrastructure; and if he will make a statement on the matter. [13811/06]

Denis Naughten (Longford-Roscommon, Fine Gael)
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Question 58: To ask the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the need for urgent investment in the Eircom infrastructure; and if he will make a statement on the matter. [13812/06]

Ciarán Cuffe (Dún Laoghaire, Green Party)
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Question 85: To ask the Minister for Communications, Marine and Natural Resources the meetings his Department officials have had with representatives from Babcock & Brown investment group with regard to the future of Eircom; and the content of such discussions that took place. [13745/06]

John Browne (Wexford, Fianna Fail)
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I propose to take Questions Nos. 9, 10, 34, 51, 58 and 85 together.

The State has no plans to invest in Eircom's infrastructure or regain control of any part thereof. Representatives of Babcock & Brown, a global investment and advisory firm founded in 1977 and listed on the Australian Stock Exchange, met with representatives of the Department of Communications, Marine and Natural Resources on 22 February. Babcock & Brown sought to introduce itself to the Department as a courtesy and advise of its interest in Eircom. As Eircom is not a State company, the Department has no role in any talks between the companies.

The provision of telecommunications infrastructure and services 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. However, recognising that a principal reason for the slow roll out of broadband services has been the lack of investment by the private sector in the necessary infrastructure to deliver broadband to all areas, the Government is addressing the infrastructural deficit in the regions by building high speed, open access metropolitan area networks, MANs, in 120 towns and cities nationwide. Phase one of this programme has delivered fibre optic networks to 27 towns and cities throughout the country.

Additional information not given on the floor of the House.

This programme has been extended to over 90 towns in various locations nationwide. It is expected these MANs will be completed during 2006 and 2007. These networks will allow the private sector to offer world class broadband services at competitive costs.

The Department also offers funding assistance for smaller towns and rural communities through the county and group broadband scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, more than 150 projects have been approved for funding under this programme. These initiatives are co-funded by the European Regional Development Fund under the national development plan. Funding under the plan also assisted Eircom and BT to enable more than 50 exchanges to provide broadband services and also co-funded the construction of a national backbone network by ESB Telecoms.

Bernard Durkan (Kildare North, Fine Gael)
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The Minister of State should expand on the Department's preferred options now that an opportunity appears to have arisen for someone to take over or buy Eircom. Does the Minister of State agree there are implications for the consumer? For example, is it likely that the provision of broadband facilities will continue at a slow pace or will there be a low investment level in infrastructure? Will the Minister of State comment on the opinion expressed by a number of economists that the State should have control of certain vital elements of the telecommunications infrastructure? Has this been given any consideration or is it likely to happen? Must we wait to determine what will occur in respect of who owns Eircom?

Let us assume a company other than Babcock & Brown decides to take over Eircom without a plan. For example, Babcock & Brown has proposed the separation of two elements of the service provision, which would leave one part under the control of one company and the other part under the control of another group without having common board members. Would it be possible for the State to examine what is about to happen and determine whether there are implications for the future so it could become involved?

John Browne (Wexford, Fianna Fail)
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The State has no plans to re-invest in the Eircom infrastructure. Babcock & Brown has approached the Department and explained its interest in Eircom. I am sure that other companies will also be interested and inform the Department accordingly. The Government has no interest in reacquiring Eircom. It will be for private investors to get involved. In recent months, Babcock & Brown Capital Limited has acquired shares in Eircom Group plc.

Tommy Broughan (Dublin North East, Labour)
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Given the crucial role of Eircom in respect of our telecommunications infrastructure and broadband, would it be possible for the Government in discussions with the possible new owners — there are many discussions that must take place, including with people representing the ESOT and other stakeholders — to request of them under the universal service obligation to operate the network in a way that would be beneficial to the final broadband enablement of Ireland? Is it good enough for the Minister of State to tell the House he is just a bystander? The Taoiseach, who is usually where the Minister of State is sitting, is always a bystander, the man in Croke Park watching the match. He is never the man who must take responsibility or run the team. In reality, he is the man who runs the team, as seen in the case of Aer Lingus where he made the decision to privatise the company. If the takeover occurs, does the Minister of State agree there should be a precondition set in respect of the shambles that is the roll out of broadband?

The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, has spoken about the mysterious "Project Dingle". Perhaps that should be "Project Daingean". As far as we on this side of the House have been able to determine, "Project Dingle" means that all of the broadband infrastructure of the semi-State bodies would be brought together under a single leadership. A dynamic person in the industry has recently taken over the running of Enet. With such a track record, what are the implications for "Project Dingle"? Will it go ahead or was it only conceived of by the Minister when he was answering questions in the House?

Given recent developments in respect of the Australian venture capitalists, is it not incumbent on us to speed up the introduction of new powers for ComReg, in particular regarding the regulation of the network, so the mess we have got into in the past six or seven years under this Administration will not continue?

John Browne (Wexford, Fianna Fail)
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It is always important that we have the most modern powers in place to deal with our actions and decisions. Babcock & Brown approached the Department. We have no say in the purchase of Eircom but, if Babcock & Brown did purchase it, we would hold discussions with that company in respect of the development of broadband.

Tommy Broughan (Dublin North East, Labour)
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Did Babcock & Brown ask the Department about what the new legislation will include?

John Browne (Wexford, Fianna Fail)
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The legislation is being prepared in the Department. We want to engage with any company that takes over Eircom to help develop and roll out broadband and determine what are the company's aspirations and views. I am sure we will do so. There may be other Babcock & Browns that will become involved in the purchase of Eircom. We will not get involved in any way, shape or form at this stage. I am sure that if the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, stated that "Project Dingle", as the Deputy called it, will be rolled out and implemented, that is what will happen.

Bernard Durkan (Kildare North, Fine Gael)
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The Government might be rolled out first.

John Browne (Wexford, Fianna Fail)
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I told Deputy Durkan to wait until next May.

Bernard Durkan (Kildare North, Fine Gael)
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The Government will be rolled out.

Eamon Ryan (Dublin South, Green Party)
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As Eircom has been scrutinised by so many groups, I am unsure whether there are many with which Members are unfamiliar. Does the Minister of State not agree that while he has stated that the State would not buy Eircom, no one has suggested that it should. Babcock & Brown appears to propose splitting the company in two. Hence, while Eircom would continue to act as a supply and mobile telephone company, the network would be available. Is there a possibility of buying back the wires rather than buying Eircom? Such a network could then be operated on an open basis for companies like Eircom and other suppliers. Is that a possibility?

The Minister of State noted that there might be another purchaser. However, I understand that Babcock & Brown's shareholding is sufficient for it to be in a commanding position to determine whether another bid would be successful. This makes the possibility of another purchaser extremely unlikely.

Does the Minister of State agree that effectively, at present the State is engaged in establishing its own independent separate network? He lauded the significant financial investment that has been made in alternative fibre networks, very little of which has been lit up. To an extent, this investment went against some of the recommendations of the Oireachtas Joint Committee on Communications, Marine and Natural Resources. In terms of an alternative network, it did not make sense to replicate fibre networks that were already in place.

Hence, rather than spending hundreds of millions by building an alternative network and adopting the Minister's "Project Dingle dell", it might be worthwhile for the State to consider setting up a single fibre optic network on which all companies could co-exist. Is Ireland big enough to have two fibre optic networks? That does not seem to make economic sense. If Babcock & Brown buys the company and divests itself of the network, it might be worth considering the possibility that it would be cheaper to buy it than to build our own separate network.

Seán Crowe (Dublin South West, Sinn Fein)
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Does the Minister of State accept that Eircom has come full circle? Once it was a fully listed company on the Stock Exchange with a fixed line and mobile network service. Later, it sold its mobile network service. Subsequently, it delisted from the Stock Exchange before floating again last year and since then it has talked about buying another mobile telephone company. It appears to have gone in a circle. Perhaps the circle to which Members should return is consideration of the question of public ownership.

John Browne (Wexford, Fianna Fail)
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The only company which has an interest at present of which I am aware is Babcock & Brown. It has significant shares in Eircom at present. I am certain that at present, the State has no plans to invest in Eircom's infrastructure or to regain control of any part thereof.

Tommy Broughan (Dublin North East, Labour)
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Has Babcock & Brown plans for the State?