Michael D'Arcy (Wexford, Fine Gael)
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Question 59: To ask the Minister for Communications, Energy and Natural Resources the reason the towns of Gorey, Enniscorthy and New Ross were not included in MANs phase two; and if he will make a statement on the matter. [35786/07]

Eamon Ryan (Dublin South, Green Party)
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In March 2002 the Government gave approval for the design and construction of fibre optic metropolitan area networks, MANs, using Government and ERDF funding under the National Development Plan 2000-2006. Phase One of this programme has delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget. ENet the management services entity, is currently managing those completed networks.

In planning the second phase of the MANs programme, a review of the availability of DSL broadband in the regions showed that over 90 towns with a population of 1,500 and above that did not have a broadband service by the private sector, and these towns were targeted for the provision of MANs under phase two.

The towns of Gorey, Enniscorthy and New Ross had DSL available and were not deemed to be the most needful for MANs infrastructure at that time. These towns are among the towns listed for phase three of the MANs project.

My Department is preparing a draft policy paper on next generation broadband networks which will consider the optimum role for Government in facilitating the roll-out of high speed broadband networks. I expect to publish the draft policy paper on next generation broadband networks for consultation early in the new year.

MANs that are under construction will proceed as planned. There are 66 phase two MANs that are either recently completed or under construction.

Michael D'Arcy (Wexford, Fine Gael)
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The Minister knows better than most that DSL is old hat at this stage in regard to broadband connectivity. In County Wexford phase one was disappointing in that only one town was connected. Kingscourt, with a population of 1,700; Kiltimagh with a population of 1,000 and Manorhamilton were connected in phase one. Gorey, Enniscorthy and New Ross, out of 94 towns, with populations closer to 10,000, were not connected. There is a competitiveness issue here that is very important. These are fast expanding towns that will not be considered for high-end jobs because they have a very much inferior version of broadband connectivity. The Minister is talking about phase three for the next generation broadband networks. Towns such as Gorey, Enniscorthy and New Ross are being left behind.

An employer in County Wexford with an employment base of more than 250 people has no broadband connectivity but does not wish to be named because of embarrassment. I ask the Minister if it would be possible, given that we are losing jobs and competitiveness, to consider an assessment for major employers, with 200 to 250 employees or more, who have zero broadband connectivity? It is a hugely important matter. The Minister should know better than most that we cannot lose jobs because of the lack of broadband.

Eamon Ryan (Dublin South, Green Party)
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To say DSL technology is old hat may not be completely accurate. There are evolutions in the DSL technology, the latest version being VDSL, which is a much higher speed, something like the 12 megabyte I mentioned earlier. This is an ongoing variation in terms of what is possible and there will be further variations as we move to next generation broadband networks where fibre optic cables are brought closer to either the exchange or to the cabinet on the street. That will mean there are towns which have exchanges enabled in that way that they could get high speed connections which may well involve VDSL or another variation of it.

The issue about the economy, competitiveness and the availability of broadband is crucial. Some 49% of our exports are in a digital form. It is crucial that we have high capacity connections. The experience on the ground is that larger employers are able to get fibre optic cables to the companies because they tend to have large-volume users and their experience compared to other international countries is reasonably good. We have strong global processing and a competitive market where operators like BT, Eircom and a range of other companies are looking to service that kind of higher-end commercial market.

The more crucial, difficult and important aspect for us is how we bring this to smaller enterprises, particularly those enterprises which are outside urban areas, so competition between a cable operator and an incumbent will see a much greater penetration of business being achieved reasonably quickly. These are the areas where we have to decide whether to intervene, be it through the national broadband scheme, the development of a backhaul network to try to assist operators to gain access to this area or the development of MANs and the review of that to find whether it is more appropriate to install it in larger rather than smaller towns.

The State has shown itself willing and able to make such investments, going back to the original investment in Global Crossing and moving to this investment in MANs. It is an ongoing and changing process because the technology and the competitive market are changing. We must take this into account and make sure no businesses or communities are left behind.

Michael D'Arcy (Wexford, Fine Gael)
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One issue that needs to be addressed is the cost of connection to MANs. At present, it can cost tens of thousands of euro to connect to MANs, which is prohibitive given that the additional running costs are also very high. E-Net got the contract in 2004 for 15 years. Will the Minister review the cost for new connectors to take up usage in MANs?

Eamon Ryan (Dublin South, Green Party)
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The Deputy's point is a good one. This is why a value-for-money report is ongoing in my Department to assess the difficulties as we roll out MANs in terms of backhaul connection but also in terms of what is known as the drop connection to get from the fibre optic ring to the business. The Deputy is correct that once a roadway must be dug up to install such a connection, the costs can be of the order of €10,000. We must examine this to find how we can be more flexible and help that service to the door.

One encouraging indicator is that E-Net in its operations has seen a 59% increase in turnover from 2006 to April 2007 from a low initial base. There is a certain uptake, although that is not to suggest there are not difficulties or that we do not need to examine this to make sure it works effectively.