Bernard Durkan (Kildare North, Fine Gael)
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Question 17: To ask the Minister for Communications, Marine and Natural Resources if it is reasonable that the biggest exporter of software in the world should have one of the worst performances in terms of the delivery of broadband services at home; and if he will make a statement on the matter. [26962/06]

Noel Dempsey (Meath, Fianna Fail)
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The Deputy may be aware that the communications market in Ireland is fully liberalised and that the Commission for Communications Regulation, ComReg, is the statutory body with responsibility for regulatory oversight of this market.

The Government recognises however that a principal reason for the slow roll-out of competitive, affordable broadband services in Ireland, principally in the regions, has been a lack of investment by the private sector in the necessary infrastructure. The Government's regulatory and infrastructure policy has supported the private sector developing a competitive, affordable and rapidly growing broadband market that offers choice of products and providers to Irish consumers and businesses.

Ireland's broadband take-up is growing very strongly. By end-March 2006, there were 322,500 broadband subscribers in Ireland. This is equivalent to almost 8% of the population or approximately 22% of households. Broadband take-up here grew by 112% over the 12 months to March, which is more than twice the EU broadband growth rate.

It is estimated that there are already well over 350,000 broadband subscribers up to mid-2006, which is equivalent to approximately 8% of the population or one quarter of households with broadband. This compares to a figure of approximately three in ten households in the EU at the end of 2005. Ireland is now one of the fastest growing broadband markets in the European Union. Broadband take-up has more than tripled to date since I set a target of 400,000 in late 2004.

The combination of telecommunications regulation and competition is driving prices down for the benefit of Irish consumers and businesses.

The Government is addressing the infrastructure deficit in the regions by building high speed, open access metropolitan area networks in 120 towns and cities nationwide. These networks will allow the private sector to offer world-class broadband services at competitive costs.

My Department offers funding assistance for smaller towns and rural communities through the county and group broadband scheme, GBS. The GBS initiative is continually under review to ensure that it supports private sector roll-out of broadband services to new locations.

My Department's website, www.broadband.gov.ie, gives full details of broadband pricing and availability around the country. The website also lists the different products on offer and the contact details for each service provider. Almost 70 of these broadband providers offer almost 300 different types of broadband products. There is a choice of broadband services that can technically deliver broadband to any customer in Ireland at the moment.

Bernard Durkan (Kildare North, Fine Gael)
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The Taoiseach expressed the view recently, when attempting to justify expenditure on electronic voting machines, that people in a country which is a leading worldwide exporter of software should, at least, be able to vote electronically. Does the Minister agree that we should equally expect that a country that is a leading exporter of software should be able to demonstrate how good the software is by ensuring broadband provision throughout the country is at least on a par with that available elsewhere in Europe?

Is the Minister aware of the recent OECD and EU reports on telecommunications technology in Ireland generally? These reports made severe criticisms of the costs associated with the provision of and access to broadband and the methodology used in its provision and demonstrated that the Irish consumer is the victim. Is he aware that in an open economy such as ours, it is essential that action is taken to drive forward the provision of broadband in a way that has not happened?

Will the Minister confirm that provision of broadband so far is only approximately 50% of what was anticipated for the end of 2005? Although Ireland is progressing at a faster rate than other European countries, this is only because we started from a much lower base. Despite this, we were placed further ahead four or five years ago.

Will the Minister indicate whether he as policy director has given instructions to ComReg and the service providers with regard to ensuring that obstacles to the provision of rapid broadband service are dealt with and resolved, for example, local loop unbundling, line rental costs and number change difficulties, which cost a fortune and take a colossal amount of time. Will the Minister indicate whether, because of the high dependence of the economy on such services, he has a programme or agenda in mind to seriously challenge those with responsibility for their provision?

Noel Dempsey (Meath, Fianna Fail)
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The Deputy will be pleased to note that our international costs for broadband are the lowest of anywhere in Europe and that our domestic costs approximate the mid-European average.

With regard to our targets, I set a target of 400,000 broadband subscribers for the end of this year. In late 2004, there were just over 100,000 broadband subscribers. Many people said we would not achieve this, but I am delighted to inform Opposition Deputies that we will achieve that target quite comfortably and will be well on the way to 500,000 subscribers by the end of 2007.

We have put regulations in place with regard to local loop unbundling, line rental costs and number portability. We have also passed legislation giving responsibility in this area to an independent regulator, ComReg. The regulator must work within the law and the Constitution and cannot make unilateral decisions that have no basis in law or it will find itself in trouble. We are moving to strengthen ComReg's powers, but this will not allow Ministers on a whim to direct private companies to roll out broadband faster. What we are trying to do is to create a climate that will make it commercially attractive for providers to roll out broadband and put in place stronger regulation that will enable ComReg to try to speed up its provision. We also hope to be in a position to provide the 10% to 15% of people throughout the country who are outside the loop with broadband, either through group or MANs schemes.

Bernard Durkan (Kildare North, Fine Gael)
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Is the existing legislation adequate to ensure the rapid provision of service and the removal of the obstacles to this? Is the Minister satisfied it is strong enough and that ComReg has the necessary power? Do we comply with EU and national legislation in the provision of broadband and other telecommunications facilities?

Has the Minister a plan or programme for investment in telecommunications infrastructure for the future?

Without strategic investment there will be little or no chance of this country competing with other countries in the development of our respective economies. Will the Minister agree this investment has not taken place in the past four or five years?

Noel Dempsey (Meath, Fianna Fail)
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The Deputy will be aware from my statements on the subject since I became Minister for Communications, Marine and Natural Resources, that I am not satisfied with the state of play regarding broadband and neither is the Government. As far back as 2002, the Government stated it was not satisfied the private sector was providing sufficient broadband capability. This was the reason the Government issued a policy document which put in place the metropolitan area networks, the group broadband scheme and also the roll out of broadband service to all schools. I agree with the Deputy that we are not in the forefront in Europe. If the Government had not tackled the matter, we would be even further behind. I agree the existing legislation is not adequate. This the reason the Government is drafting the Bill to give co-competition powers to ComReg. This legislation will be brought before the House in the autumn. Both Deputies opposite indicated they would be supportive of this Bill which will give extra powers to the regulator.

One of the frustrations which is being voiced by the Deputy and which I have voiced is that in the past the attitude of the service providers has been very negative. They have tended to take the legal route and contest everything, thus slowing the process. I hope the combination of powers and a change of attitude from the incumbent will help to deal with some of the issues to which the Deputy referred, in particular the local loop unbundling and the number portability.