Martin Ferris (Kerry North, Sinn Fein)
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Question 7: To ask the Minister for Communications, Energy and Natural Resources his views on whether private companies will be able to ensure that all parts of rural Ireland receive broadband. [21352/08]

Joanna Tuffy (Dublin Mid West, Labour)
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Question 20: To ask the Minister for Communications, Energy and Natural Resources the measures taken to ensure there is not an increase in the digital divide; the proposals for an increase in support for information and communication technology in disadvantaged communities; and if he will make a statement on the matter. [21376/08]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 7 and 20 together.

The provision of broadband services is, in the first instance, a matter for the private sector. Broadband service providers operate in a fully liberalised market, regulated, where appropriate, by the independent Commission for Communications Regulation, ComReg. The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers.

The widespread provision of broadband services continues to be a priority for the Government. In that regard the Department of Communications, Energy and Natural Resources has undertaken initiatives to address the gaps in broadband coverage. These included providing grant aid under the group broadband scheme and ongoing investment in metropolitan area networks.

Although broadband is now widely available, there are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband services. These areas are being addressed by the national broadband scheme, NBS, which will provide broadband services to areas currently not served and will ensure all reasonable requests for broadband are met.

The first phase of the NBS procurement process, the pre-qualification questionnaire, is now complete. Four candidates pre-qualified to enter the next phase of the procurement process. Following the withdrawal of the IFA-Motorola consortium as a candidate, the remaining three candidates commenced competitive dialogue with the Department and are developing their proposed solutions to meet the Department's requirements for the delivery of broadband to the unserved areas of the country.

The Department recently received notice of judicial review proceedings regarding certain elements of the NBS mapping process. These proceedings are before the Commercial Court and due for hearing on 10 and 11 June 2008. A speedy conclusion of the matter has been requested to advance the NBS as quickly as possible. It is anticipated that a preferred bidder will be selected in August 2008, with the roll-out to commence as soon as possible thereafter.

Up to €970,000 will be distributed by Pobal this year to support ICT initiatives aimed at disadvantaged communities. Almost 1,500 public access Internet PCs are available in public libraries across the country. I welcome the roll-out of all electronic communication infrastructure by service providers, which increases competition in the market. Increased competition gives rise to better quality services, increased choice and more competitive prices, all of which enhance connectivity for the consumer.

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Is the Minister aware of a recent report that, despite improvements in broadband roll-out, placed Ireland 12 out of 15 in a survey on EU broadband penetration? Despite the third highest growth rate of broadband services, penetration remains well below the EU average.

What is particularly striking is the low level of broadband accessibility in rural areas. There are still large areas of the State with no access to broadband. A year ago while Dún Laoghaire had penetration levels of 40%, the rate in Leitrim was 7% and Sligo, 10% and Leinster counties such as Wexford and Longford had similar levels. Does the Minister understand this is a serious problem for the rural economy? It has been cited as one of the main barriers to job creation in rural areas. Will the Minister agree it is, therefore, too important an area to be left to private providers and the State must play a greater role in ensuring broadband access is available throughout the State?

Will the Minister agree a universal service obligation, similar to that which applies to the telephone network and the postal services, ought to be applied to broadband services? If the market remains in private hands, private companies should be obliged to provide services even in areas where they claim no profit can be made.

The Minister's party was correct in opposing the privatisation of Eircom in 1999. The deficiencies I have highlighted are a direct consequence of this. Two years ago, the Minister supported the retaining of Eircom as a natural State monopoly to ensure access to broadband in every part of the State. Does he still hold that view?

Eamon Ryan (Dublin South, Green Party)
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The events since privatisation in 1999 have been unsatisfactory. The change of ownership of Eircom on a regular basis and the lack of investment, particularly between 2002 and 2004, are the reasons we are playing catch-up. It was the failure then to invest in broadband that put us down the league table. I said at the time that this was a bad business mistake because broadband will deliver key services in society.

The State plays a role and will continue to do so with the NBS. When the market claims it does not have a commercial case for providing broadband services in certain areas, the State will provide them through the NBS. That is the State funding the roll-out of broadband through private providers.

The State has other roles in, for example, the management of the wireless spectrum. It is now a key component in the delivery of a range of mobile broadband services. This asset, I believe, should be used in an innovative and flexible way to promote the development of new services. That is an area where the State is involved.

The State is involved in the use of existing State assets to support broadband access. This is done through the metropolitan area networks and, for example, in Dublin through the QBCs. New QBCs are fitted with ducting to facilitate broadband development. The State has a key role in assisting the development of broadband services through the provision and delivery of health, social welfare, education and other services.

Liz McManus (Wicklow, Labour)
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That was such a panoramic view of public policy, I was disappointed the Minister had to stop. Last Friday the Minister stated he would not give €150 million in finance for Eircom's proposal, Fibre Ireland. Yesterday industry representatives attended the Joint Committee on Communications, Energy and Natural Resources and their understanding is that there is engagement between the Department and Eircom and that the story is not over. Will the Minister tell us what exactly is going on?

Eamon Ryan (Dublin South, Green Party)
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It is right for us to engage with all companies in the market. I have ongoing meetings with Eircom as well as BT and others.

Liz McManus (Wicklow, Labour)
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Is the proposal dead?

Eamon Ryan (Dublin South, Green Party)
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No, I certainly hope it is not. We want to create an environment that supports investment in new networks. I would very much like to see such investment proposals progressed. However, I had to make a policy decision as to whether it is right for the State to make a direct investment in any one platform or technology. My assessment is that it is not right to do so. It is better to clarify this early so other investment decisions are not disrupted.

The Telecommunications and Internet Federation estimated that €700 million is invested each year by a plethora of telecommunications companies. It is important this delivers new services for the people. I support Eircom's investment plan to deliver broadband across the country. However, it does not need specific State investment in any one platform or technology.

Liz McManus (Wicklow, Labour)
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What is the Minister talking about then?

Eamon Ryan (Dublin South, Green Party)
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It is about all telecommunications companies and how we develop our broadband system.

Liz McManus (Wicklow, Labour)
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The Minister is saying the Eircom Fibre Ireland proposal is over and not over.

Eamon Ryan (Dublin South, Green Party)
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No, I am not, I am saying that the State will not invest in one particular technology. As this is such a fast-changing technological area, it is better for the market to invest in particular technologies. The State must create the proper regulatory environment to support that but it is not appropriate for the State to become involved directly.

Liz McManus (Wicklow, Labour)
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The Jesuits reared the Minister well.

Joe McHugh (Donegal North East, Fine Gael)
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Can the Minister convince this side of the House that he will not be subject to the diktat from the Taoiseach that there will be a pull-back in some national development plan projects? As Deputy McManus said, the Minister described in panoramic terms the roll-out of next generation broadband. Will he be curtailed in his spending by this new directive on a reduction in expenditure on the national development programme?

Eamon Ryan (Dublin South, Green Party)
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Far from issuing a diktat, I find the Taoiseach's approach to be one of strategic thinking, good consideration and attention to detail and to the long-term interests of the Irish people.

These broadband technologies are crucial to the economic and social development of our country. The recent ESRI medium-term review report shows that one of the main areas of growth will be in the development of international traded services. These will be traded digitally so we will need a good digital infrastructure to become a knowledge economy. Both the Taoiseach and the Minister for Finance are aware of this. It is a case for detailed consideration as to how we invest the money to ensure we spend it well on behalf of the people.

Joe McHugh (Donegal North East, Fine Gael)
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No pull back.

Noel Coonan (Tipperary North, Fine Gael)
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Why were provincial towns such as Thurles not included in any phase of the metropolitan area networks? What will happen to towns like Thurles now? What is happening in the case where MANs have been put into towns but there is no connection to the outside world? When will they be connected?

Eamon Ryan (Dublin South, Green Party)
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I will check my information but I understand Thurles is included in the third phase of the MAN scheme. At the same time as it is intended to publish our next generation broadband report, I intend publishing the value for money report on the metropolitan area networks which assesses exactly the question asked by the Deputy. We must decide how these metropolitan area networks are used where there is not strong connectivity between the town and the network and the crucial issue of how to connect those fibre-optic rings into the house or into the business. This is a real expense. It costs approximately €10,000 at least for any short connection from a fibre-optic ring into a house and this cost makes the development of fibre broadband connection prohibitive except for a very large business.

Noel Coonan (Tipperary North, Fine Gael)
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Is this not a case of going for value for money first? Should it not be the case of putting the horse before the cart?

Eamon Ryan (Dublin South, Green Party)
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I refer the Deputy to the period 2002 to 2004 when the real failure happened. The development of the metropolitan area network concept came when there was clear market failure, when Eircom at the time was not investing in broadband connections. It was decided — with Fine Gael agreement — that an effort should be made to kick-start the market.

Noel Coonan (Tipperary North, Fine Gael)
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The Minister was working closely with us at that time.

Eamon Ryan (Dublin South, Green Party)
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I was indeed. We co-wrote a report in Opposition. One of the points we made in the report was that the networks should be operated on an open access basis, which they are, but also they should be a collaborative development with existing fibre. We continue to review it and this is the reason the value for money report is crucial and will be published at the same time.