Dáil debates

Thursday, 15 November 2007

Priority Questions

Telecommunications Services.

3:00 pm

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 3: To ask the Minister for Communications, Energy and Natural Resources the status of the second phase of the MANs roll-out; the way he envisages MANs operating with a broken up Eircom; if he has been promised extra money in budget 2008 to make up the shortfall caused by a recent supplementary estimate; and if he will make a statement on the matter. [29140/07]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Under the second phase of the metropolitan area networks programme, 92 towns were targeted for investment in high-speed open access fibre optic networks. To date, MANs are either completed or under construction in 63 towns and a further 29 networks are in the detailed design phase. In conjunction with other next generation networks, MANs will play a key role in the delivery of high-speed broadband services for decades to come.

MANs operate on an open access basis. Eircom has the same entitlement to use the MANs as any other operator. Eircom has submitted a paper to me addressing a number of issues related to the future provision of broadband, including a suggested structural separation of the company into network and retail arms. My Department has met Eircom to clarify issues raised in its paper and will engage with it again in due course.

The reallocation in 2007 of unspent funding due to timing purposes from the national broadband scheme has not given rise to any shortfall of funding for the Exchequer funded broadband programme. The 2008 Exchequer provision for broadband will be revealed in budget 2008 on 5 December.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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In a one-word answer, how much is the second phase of MANs expected to cost? While the Minister is looking for the figure, I will make one or two other points in the form of questions.

The Minister's record on broadband has not been covered in glory since he took charge. Since his previous Question Time, the Minister has effectively bailed out the Greener Homes scheme with €10 million he took from the broadband roll-out capital budget for next year. Will the Minister inform the House of how much he anticipates the second phase of MANs will cost? The previous Minister gave the House a figure in a commitment in March. Is €10 million missing from the figure?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I do not have the exact figure. It refers to an historical estimate. As I do not want to guess, I will revert to the Deputy with the figure.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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With all due respect, the Minister has had time to prepare for my question on whether the second phase of MANs will proceed and whether the 92 towns that were promised fibre optic cable and the associated benefits can expect the phase to be completed on time. The Minister does not have the cost figure.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The figure was an initial estimate and the final cost will depend on a number of factors. The second phase of MANs contains different elements, such as a proposal for wireless MANs and fixed line MANs. The former needs clearance from the European Commission before it can be approved and go out to tender. One cannot know the exact costs.

The fundamental question relates to whether the €10 million addressed in the Supplementary Estimate passed by the Dáil affects the MANs programme. At the time, I clarified that the programme would not be affected. The €10 million in funding was included in the budget as an allocation for the national broadband scheme. Due to start in 2007, it will be delayed until early 2008 because of complications in the process. The funding was reallocated to the Greener Homes scheme. The €10 million reallocation had no consequences in terms of the contracting or spending of MANs.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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It did.

Photo of Johnny BradyJohnny Brady (Meath West, Fianna Fail)
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Allow the Minister to conclude.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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It is important that I have a final chance to contribute. Does the Minister expect the House to believe that, when a Department receives an allocation of €10 million from the Department of Finance with a broadband capital expenditure label, he can whip the money from that budget to bail out an entirely separate but worthwhile section of his Department that had overspent? Does he expect us to believe that has no impact on national broadband roll-out?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Yes, I expect Deputy Coveney to believe that. While I cannot pre-empt the 2008 budget, we will see on 5 December whether there is funding for the national broadband scheme, and if there is, my proposal is watertight and accurate. What would Deputy Coveney have done differently? Would he not have reallocated budget to fund the greener homes schemes in the sensible, orderly manner I did?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I am not the Minister.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I used proper management procedures to spend the budget according to a multi-annual framework in the areas where it is needed in a particular year, and I would not have done otherwise. The budget was available because it was not going to be spent. Would Deputy Coveney not have done the same?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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My job in Opposition is to ensure when a Minister is in charge of different areas he does not prioritise one area over another when they are equally important. The roll-out of broadband is as important as the greener homes scheme.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I agree with the Deputy.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Yet the Minister has taken €10 million from the broadband budget. Whatever budget we have for broadband next year it should be €10 million higher.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I agree that one area is as important as the other, but where one has an unspent allocation in one area because of the timing of a particular project, and a demand in another area, it makes sense to do what I did. I would love to know what Deputy Coveney or anybody else would have done differently.