Simon Coveney (Cork South Central, Fine Gael)
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Question 60: To ask the Minister for Communications, Energy and Natural Resources his view on the impact that a decision of a company (details supplied) not to proceed with commercial digital terrestrial television will have on the roll-out of both commercial and free to air DTT services; and if he will make a statement on the matter. [19119/09]

Liz McManus (Wicklow, Labour)
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Question 61: To ask the Minister for Communications, Energy and Natural Resources the way he will meet his commitment to be on target to launch digital terrestrial television services to 85% of the population, including the south east, by autumn 2009 in view of the collapse of the deal (details supplied) for DTT; his plans to respond to the analogue switch off in Wales 2009 which will impact immediately on viewers in the south east of the country who currently receive overspill British television channels; and if he will make a statement on the matter. [18994/09]

Eamon Ryan (Dublin South, Green Party)
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I propose to take Questions Nos. 60 and 61 together.

The Broadcasting (Amendment) Act, 2007 puts in place a flexible framework for the licensing of digital terrestrial television, DTT, into the future. The Act provides for the establishment of a free to air DTT service to replace the existing analogue terrestrial services offered by RTE, TG4 and TV3. The analogue network is nearing obsolescence, is expensive to operate and results in an inefficient use of spectrum. Analogue availability will cease in 2012. The resultant availability of additional spectrum will yield a digital dividend which will give us economic and social benefits, such as the development of wireless broadband.

The roll-out of DTT infrastructure is well advanced and RTE Networks Limited has built a network which includes the main transmitter sites in Ireland. This represents the most difficult and costly part of the build plan. The remaining building work will largely involve upgrading the country's minor transmitter sites to provide infill coverage and to ensure outlying areas in the west, north, north west and south, areas most reliant on the analogue terrestrial service, are also served by DTT, digital terrestrial television.

The 2007 Act also provides for the development of commercial DTT services, which are anticipated to provide further choice to those who wish to avail of channels additional to the Irish free-to-air channels. The Act provides for the Broadcasting Commission of Ireland to licence commercial DTT operators, as a matter of priority. In this regard, the BCI ran a competition for three national DTT multiplex contracts in March 2008. On 21 July 2008 the BCI announced its intention to enter into contract negotiations with Boxer DTT limited for the award of the three national commercial DTT multiplexes. On 20 April 2009 the BCI announced that Boxer DTT limited had withdrawn from contract negotiations.

The BCI subsequently approached the second placed applicant, the One Vision consortium, and has announced that it has now agreed to enter into contract negotiations with One Vision. I welcome this development and look forward to a speedy and successful conclusion to these negotiations. The BCI has confirmed that it is committed to pursuing the development of DTT services in Ireland as quickly as possible. I emphasise the BCI is an independent body and that I have no role in its licensing process. However, I am closely monitoring the progress being made.

The United Kingdom has a schedule to switch off analogue television in different regions from 2008 to 2012 in favour of digital terrestrial television. Analogue services in Wales are set to switch off in autumn 2009. This is likely to impact viewers along the south east of the country who currently receive overspill of the UK analogue terrestrial television channels. Viewers on cable and satellite will not be affected. Both RTE and the BCI are aware of the situation in Wales and of the importance of providing DTT along the south-east of Ireland, as a matter of priority.

Simon Coveney (Cork South Central, Fine Gael)
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Since the Minister is taking two priority questions together I hope there will be real engagement on the issue rather than simply statements from both sides. My party strongly supports DTT and we support the Government in its roll-out of DTT, including commercial DTT and free-to-air channels. To give the impression that the pull-out by the Boxer consortium has caused nothing more than a need for the BCI to move on to the next best bidder, namely, One Vision, and to proceed as if there is no problem is totally misrepresenting the situation.

According to its own targets, the Boxer consortium was due to roll out digital terrestrial television before this summer. It has pulled out of a 12 year contract and the BCI is now undertaking negotiations with the next best bidder, One Vision. People must know the position. One Vision is made up of Setanta Ireland, Eircom and TV3, all good companies, but all of which are under severe financial pressure at present. Does the Minister have confidence in the process? Does he believe One Vision can now do what he expected Boxer to do considering the financing required for rolling out three multiplexes, or, will there be legal motions or a legal requirement to go to the next best bidder through the BCI? Is this a realistic attempt to roll out commercial DTT through BCI negotiations with One Vision or are we simply going through the motions? Will we be starting again in several months' time?

My second question is specific and was not referred to by the Minister, although he should have done so. What has taken place with Boxer has put Ireland under significant pressure. Is is not true to say RTE has already spent the majority of the money it intends rolling out DTT infrastructure already? It has spent €40 million to date and it anticipates that at least a further €60 million is required to provide DTT coverage throughout the country. Will the Minister insist on RTE having three or four channels free-to-air on DTT by the end of the year in the absence of a commercial operator? If he does so, would it make life financially impossible for RTE?

Eamon Ryan (Dublin South, Green Party)
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To correct a detail, Boxer did not pull out of the contract. It did not agree a contract with the BCI or RTE on the transmission side. A contract was not ended, there was an inability to agree a contract. That is a real concern and it is a pity. Everyone would admit the timeline involved is not ideal and we did not wish for it. We sought the signature of a contract and for the services to be in place quickly. There was a welcome development. However, at least in the process organised by the BCI there is a system where an alternative bidder may be approached.

I have confidence in the process and I do not believe the companies involved are simply going through the motions. There is no obligation on a second bidder or any other bidder to enter into such negotiations or to give an expression of interest. However, I am not surprised it has done so because, I imagine, for each of the companies involved there is a very significant strategic benefit in terms of involvement in the new DTT services.

Although the economy is in difficult straits and companies are in difficult times as a result, these are solid, profitable, effective, well-managed companies. Arqiva is the fourth company in the consortium, which the Deputy forgot to mention. This is its strategic business decision. If I were in the telecommunications, broadcasting, or network services business, as these companies are, I would view this as a significant opportunity, and, therefore, I have every confidence. Although I cannot be certain how the negotiations will proceed there is no question of a false confidence. I am deliberately not involved in the licensing or contract negotiation process. However, it is viable for us to move very quickly to get a DTT service.

It is true that RTE is under financial pressure in terms of delivering DTT services. The downturn in advertising has placed on RTE a real commercial difficulty, and this is the case with every other station at present. However, everyone must face a fundamental reality in this process. We will switch off the analogue system in 2012 because there is significant economic benefit for the country to remain on the path towards investing in a network to provide digital services and to switch off analogue. We simply cannot turn back. It would show a lack of vision in terms of the development of our spectrum on broadband and a whole range of other services. Although it is difficult for RTE, and I fully accept it is in a very difficult position financially, we are fully committed to the network and to the ability to switch off by 2012.

Liz McManus (Wicklow, Labour)
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It is regrettable that we find ourselves in this situation. It is very important that whatever can be done is done to ensure we reach the important targets set by the Minister. However, we must first consider the record. The Minister is saying that if he were in that line of business he would be very excited to take on such a project. However, a consortium with a good deal of experience in the area walked away from the contract, which it did not sign, after eight months.

Why did the Minister and the BCI allow for such an extended period before it came to this regrettable conclusion? When the announcement was made last July, the Minister stated that he was delighted at the speed at which the BCI has pursued this activity. Will the Minister not take some responsibility for the fact that there was a long period of negotiation which ended up in the sand? Will he assure us, in terms of his rather naive confidence in the process, that there is a deadline for the negotiations underway involving the BCI? The statement made was that One Vision now has the licence. However, it is accompanied by the rather large caveat that it is subject to contractual negotiations. What is the deadline and what restrictions are in place to ensure we do not end up in eight or nine months time with an unholy mess on our hands because of a repeat of what happened before? Has the Minister any concerns related to the Boxer withdrawal? The quote recorded in respect of its decision was that is was due to prevailing and anticipated economic circumstances. Does the Minister accept such circumstances prevail regardless of who takes up the contract? Has the Minister carried out any assessment in terms of the likelihood of the ability of the second consortium to step up to the plate?

Brendan Howlin (Wexford, Labour)
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I want to get the Minister in before time expires.

Liz McManus (Wicklow, Labour)
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I appreciate that, but-----

Brendan Howlin (Wexford, Labour)
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Time is time.

Liz McManus (Wicklow, Labour)
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-----two questions have been taken together.

I represent an east coast constituency. This autumn, people in my county, and the Leas-Cheann Comhairle's, are going to lose the benefits of the overspill they have enjoyed for 30 years. The Minister has no control over that, but he has to deal with it. Will he guarantee that those people will have access to the channels they currently enjoy? Will he make that commitment?

There is much confusion about the analogue switch-off, if indeed people understand anything about what is going to happen. Will the Minister set up a public awareness forum to ensure that information is delivered to people who will be directly affected?

Eamon Ryan (Dublin South, Green Party)
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On our involvement, we took appropriate action. The lesson we have learned from the past is that Ministers do not get directly involved in contract negotiations.

Liz McManus (Wicklow, Labour)
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There is no deadline in the contract.

Eamon Ryan (Dublin South, Green Party)
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However, we were involved in pulling together every aspect where the State has a role, be it the regulation of spectrum, the development of the network or my Department's work on the set-top boxes and other infrastructure we need for digital terrestrial television. We have worked consistently on that.

Simon Coveney (Cork South Central, Fine Gael)
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We have no set-top boxes now.

Eamon Ryan (Dublin South, Green Party)
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The contract negotiations were a matter for the consortium and RTE, and for the consortium and the BCI. I regret that the negotiations were not successful, that they were protracted and that they did not lead to an outcome. Since that failure became apparent, the BCI has been determined to proceed to a successful outcome. It has set tight deadlines to see whether other consortia are interested. At least we have a positive situation in that other consortia have said of their own volition that they are interested and they are entering contract negotiations. I do not want to set a timescale for that other than to say I expect it will be a short period of months rather than a long one.

It is in everyone's commercial interests to get out there with a service that still has a viable future in Ireland, as it does in every other country in Europe. Without taking a line on one platform or means of providing the service versus another, I believe the option of digital terrestrial television has a future and that the Irish public will use it. It is up to the commercial companies involved to decide on the contract arrangements.

There is an issue about the loss of spillover that will occur later this year when the UK switches off its analogue system. I have been particularly concerned about that, which is why I put time pressures on everyone on the issue. This is a technical issue, but I understand there still will be a certain amount of digital spillover, albeit not on the scale of the analogue spillover.

Liz McManus (Wicklow, Labour)
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The Minister does not know how much there will be.

Eamon Ryan (Dublin South, Green Party)
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I do not have a map of the digital spillover, but I am told there will be a certain amount. As I said in my first answer, the key development is that we have built the network that will cover that section of the country. Subject to contract negotiations and agreement, it should be possible for us to get services up and running quickly so that the channels are available to people. They will not get them in the same way as they do in the current situation, where they are free and the overspill exists on the basis of geography. Obviously, the commercial multiplexes or whatever system is created under the final contract arrangements will charge for access to certain services, so the position will not be the same. However, we must have our own digital terrestrial platform and I believe that will be achieved.