Seán Kyne (Galway West, Fine Gael)
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I welcome the Minister of State, Deputy Cannon. He would agree that if there is one trend to be observed in our country’s economic recovery it is how Dublin-centric it is. The lion’s share of new jobs are in the greater Dublin region and the property market over the last period of time is performing in the same way, which leading to talk of a two-speed market. With this topical issue, focusing on what is termed the western arc, it is not my intention to follow in the footsteps of others and be overtly critical or to take a swipe at Dublin because it would be advantageous to do so. However, to any observer it is clear that economic recovery is stronger in the capital.

We cannot - nor should citizens be expected to - cram into Dublin and the surrounding counties. According to the latest CSO figures, 50% of the population live in the Leinster area. There is an ignorance, sometimes completely genuine, among residents of the capital of the additional challenges faced by people in rural or semi-rural areas. Limited public transport options, less developed transport infrastructure, additional costs for energy supply and communications and a lack of high-quality broadband Internet services, let alone a choice of service providers, are all additional challenges faced by people outside Dublin and the other urban areas. I regularly meet with businesses in the west and with constituents who outline such problems, which are holding them back.

A web presence is integral to the success of a business, with an increasing amount of business being conducted online. Furthermore, the transition to e-commerce and e-business is lessening the significance of location, meaning a business on the western coast with a high-quality broadband connection can compete successfully with a business in central Dublin. Broadband Internet access is also vital for flexible working options. Recently, a constituent who works from home for part of the week told me he has to drive to the car park of his local GAA club to be able to download some of the documents he requires.

The Government obviously cannot dictate to businesses where they should locate or establish themselves. However, Government can and should take steps to promote a regionally balanced economic recovery. The western arc is a counterbalance to the east and Dublin regions and involves connectivity between five of the six largest cities, Belfast, Derry, Sligo, Galway, Limerick and Cork. It is essential for maximising the total gain from road, rail, air, sea, energy and broadband telecommunications to release the full economic potential of the region.

There must be a realisation that a meaningful economic recovery will not take place until we address regional imbalances in a co-ordinated and strategic way. The lack of co-ordination and strategy is exemplified by the fact that this topical issue falls between the two Departments - those responsible for communications and transport - with each saying the other is responsible. The western arc initiative involves the Department of Transport, Tourism and Sport and the Department of Communications, Energy and Natural Resources as well as other Government Departments and State organisations such as the Western Development Commission and the Border, Midlands and Western Regional Assembly. They have done much work to promote the region and, rightly, to point out the positives in the region. I ask the Minister to look positively on the western arc proposal as has been outlined. I am sure he is aware of it. He might give us his comments.

Ciarán Cannon (Galway East, Fine Gael)
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The Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, is unable to attend today due to a prior commitment. As Deputy Kyne pointed out, the question he has posed is shared between the Minister for Communications, Energy and Natural Resources and the Minister for Transport, Tourism and Sport. I will try as best I can to respond to the issues he raised.

The Minister for Transport, Tourism and Sport has indicated to the House previously that there is no policy or plan to develop the concept of a so-called western arc or indeed a so-called eastern arc. The Government's policy on the funding of capital projects to 2016, including rail and road links, is set out in the document Infrastructure and Capital Investment 2012-16: Medium Term Exchequer Framework. Due to the overall reduction in funding for transport infrastructure, the priority to 2016 is to protect the investment made to date and maintain safety standards. The limited funding available over and above this priority will be provided only for projects which are affordable, meet overall transport objectives and deliver the best return in terms of economic recovery and job creation.

In the energy area, the Government Policy Statement on the Strategic Importance of Transmission and Other Energy Infrastructure underlines the importance of investment in energy infrastructure. The statement notes that our ability to rebuild the economy, deliver the regional development Deputy Kyne mentioned, create jobs and growth, ensure general well-being and realise the economic potential of our renewable energy resources requires such investment.

EirGrid has a major commitment to upgrading and putting in place new infrastructure all over the west of Ireland, which supports economic growth. The €240 million Grid West project consists of a new high-capacity power line linking the Bellacorick area in County Mayo to Flagford in County Roscommon and Cashla in County Galway. This project is part of EirGrid's GRID25 plan to upgrade the national transmission system between now and 2025. The Grid West project will connect the electricity generated by the region's major renewable energy resources and will facilitate significant job creation and investment as well as contributing to national recovery and growth.

Considerable public and private sector investment in telecommunications has already been made in the western arc region. Bord Gáis has installed fibre-optic cabling along the route of its gas pipeline from Cork to Galway via Ennis, Shannon and Limerick. ESB and larnród Éireann also provide backhaul services in the region. Project Kelvin provides direct international telecommunications connectivity to North America and Europe and links Letterkenny to Derry and Belfast. The national broadband scheme provides basic broadband services. I am delighted that all post primary schools in the region and in all of Ireland will be connected with 100 Mbps broadband by September 2014.

Metropolitan area fibre networks have been built in 47 towns in the western region, providing high-capacity services to telecommunications operators in these locations. Telecommunications operators are also investing in advanced broadband services. Deputy Kyne rightly pointed out the significant challenge we face in delivering a high-quality broadband service to the whole of Ireland, including the western seaboard. The Government's national broadband plan aims to radically change the broadband landscape in Ireland by ensuring high-speed broadband is available to all citizens and businesses through a combination of commercial investment and State intervention.

It is clear that despite the economic downturn, the Government and industry remain committed to investing in the western region. We are committed to building on the region's considerable potential for growth, particularly in the energy area, and by facilitating greater connectivity, the Government is focused on maximising the opportunities for development in the western arc region.

Seán Kyne (Galway West, Fine Gael)
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I thank the Minister of State for providing a response on behalf of the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar. It is clear that there is significant activity and I am familiar with much of it. We are in a situation where over 50% of the population are in the Leinster region and to prevent further decline in the population outside that region, we need to ensure the western region will continue to receive investment. The investment outlined will provide for the provision of sustainable jobs in the region.

I am disappointed to hear that the petitions committee of the European Parliament wrote to the Government - the Minister for Transport, Tourism and Sport in particular - asking why available EU funding for projects such as those comprising the western arc was not being drawn down. Everyone knows and appreciates the constraints on State expenditure and we remain in a vulnerable position in that regard. However, we must appreciate that investment of the type sought will produce multiple times the dividend produced by the initial State contribution. The letter from the petitions committee states that it regrets that the west and north-west region appear not to have benefited from ERDF funding and that no ex-ante public consultation was carried out.

This relates to funding as far back as 2007; therefore, the lack of investment does not just cover the period of office of the current Government. The petitions committee was referring to a lack of investment over a long period, particularly in transport. As the Minister of State is aware, the European Union has a transport infrastructural programme, the TEN-T programme, from which €26 billion is available from now for the next few years across Europe for regional infrastructural projects. I seek a response from the Government as to why the western region has not been included in a TEN-T programme funding proposal. I ask the Minister of State to liaise with the Minister on this issue so as to advance the concept and procure infrastructure under the TEN-T programme.

Ciarán Cannon (Galway East, Fine Gael)
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As I indicated, the Minister for Transport, Tourism and Sport has already informed the House that there is no policy or plan to develop the specific concept referred to by the Deputy, the so-called western arc. There is no plan to develop an eastern arc either. Following discussion of this issue in the public domain, I understand the Minister of State, Deputy Michael Ring, organised for a deputation from the west to meet officials in the Department and there was a significant discussion of the concept. The investment suggested by the Deputy involves quite a complex process and is primarily designed to create inter-country rather than internal linkages. However, I will undertake to discuss the issue further with the Minister.

The Deputy is aware that we are on the cusp of developing the final section of the M17-M18 motorway. I am hopeful the project will proceed to construction next year. This will provide a significant arterial transport corridor, stretching from Limerick to Sligo and linking some of the significant towns and cities mentioned. There is major and ongoing investment in the west. The Government is committed to achieving balanced regional development and the investment we are making reflects this. We want to leverage private sector investment, particularly in the roll-out of broadband, and are confident we can do this. We already see the tangible results of that policy on investment in the west and I hope we will see further results in the future.