Mick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

6. To ask the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the poor quality of broadband services in the Wellingtonbridge and Bannow areas of Wexford; his plan to address same; and if he will make a statement on the matter. [24773/14]

Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

11. To ask the Minister for Communications, Energy and Natural Resources if he will report on the progress of the rural broadband implementation plan; if the plan has cleared the EU regulations; and when it is hoped to begin the roll out of broadband infrastructure to the rural locations identified recently. [24720/14]

Mick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

A constituent of mine in Bannow told me he is currently forced to use Q Sat for his broadband connection. It gives him a speed of 5 Mbps and a monthly usage allowance of 10 GB. He said the service is barely adequate for conducting day-to-day business and is definitely not good enough to allow him to use facilities such as Skype. What are the Minister's plans to address the poor quality of broadband services in the area?

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos 6. and 11 together.

The Government’s national broadband plan, which I published in August 2012, aims to change radically the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. That will be achieved by providing a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and State-led intervention for areas where it is not commercial for the market to invest.

Since publication of the plan, investments by the commercial sector are under way and in some instances have been accelerated in both fixed line and wireless high speed broadband services. Commercial operators combined have either invested, or committed to invest, more than €2 billion in their Irish networks, delivering high speed broadband to homes and businesses. As a result of this accelerated investment the addressable area required by the State-led intervention has reduced by 30% since the national broadband plan was launched. While these commercial developments are welcome, investment is largely contained to cities and towns. Consequently, the speeds that are available in these areas are demonstrably better than those that are available in more rural areas such as those raised by Deputy Wallace.

On 25 April last, I signalled the Government's commitment to a major telecommunications network build-out to rural Ireland, with fibre as the foundation of its investment, as part of the State-led intervention under the national broadband plan. This commitment is a clear expression of Government’s determination to address the connectivity challenge in rural Ireland in a meaningful and sustainable way. Central to the strategy will be a fibre build-out to locations in every county in the State identified as having no existing or planned enabling fibre network. It is intended that the fibre will be delivered directly to access points for homes and businesses, where service providers can utilise the fibre to provide high speed services to end users.

I have published a county-by-county list of towns and villages which have already been identified for a fibre build-out. It is an indicative list and is subject to the completion of the comprehensive mapping exercise currently under way in my Department. Further locations may be identified as this process continues. Similarly, it may be determined that some locations on the list will be addressed by the commercial sector and will therefore not require State intervention. The list, which is just short of 1,100 villages, is available on my Department's website . I expect that the mapping exercise will be concluded in the autumn.

In tandem with the completion of the mapping exercise, intensive design and planning work is ongoing in my Department with a view to producing a detailed end-to-end implementation strategy for the State-led intervention. It is my intention to conduct a full public consultation on the outcome of the mapping process and the proposed implementation strategy. My Department has had initial discussions with the European Commission on the relevant state aid guidelines and a formal application for EU state aid application will be made to the Commission once details of the intervention are finalised. That will be followed by a detailed procurement process with a view to commencing construction of the fibre network and provision of services in identified areas as quickly as possible.

The EU Commission’s guidelines on state aid for high speed broadband infrastructure preclude member states from intervening in regions in which private investors have demonstrated plans to roll out infrastructure within the following three years.

In this regard, I understand that at least one network operator has published a programme to roll out fibre-based broadband networks in County Wexford, including the area of Wellingtonbridge, by July 2016.

Mick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

Am I then to understand that because some private operator has agreed to do it before July 2016, Wellingtonbridge will not be on the list for direct State intervention in this regard? Can the Minister identify the private company that has been designated for the Wellingtonbridge area? July 2016 seems like a long time away and as most things are not delivered on time in Ireland, it could be even further away. Does the Minister think it is fair that the European Union insists the State should not be allowed to help, given that a private company wishes to invest in the area but cannot do so straight away? As the private company cannot do it now but perhaps the State can, does the Minister not think there is an argument for allowing the State to go ahead? On a different subject, can the Minister tell me how much the State's direct aid will amount to? How much does the State plan to invest in this regard?

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

As to whether it is fair, it does not really matter whether I think it is fair. These are the European Union rules and I sometimes find some of them to be massively frustrating. However, given that the Government has decided the commercial sector is doing a job in the cities and towns of Ireland which is comparable with anything that happens throughout the European Union and that the very basic quality of broadband in parts of rural Ireland is entirely unacceptable, only a State-led intervention will then address that problem. To pass muster with the European Commission in respect of state aid rules, the Government must engage in a detailed mapping exercise for presentation to the Commission.

If the Leas-Cheann Comhairle will permit me to continue for a second, this is somewhat complex, and Deputy Wallace has asked a fundamental question. The Government has engaged consultants in the preparation of this plan and my answer formally states that it will be submitted in the autumn. While I believe it will be submitted before that, it is being done and must be done in consultation with the private commercial operators, because the European principle is that if a commercial operator has a credible plan to provide the service, the Commission will not approve the state aid permission.

Michael Kitt (Galway East, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I will come back to the Minister, but I must allow Deputy Kyne to contribute.

Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I certainly welcome the Government initiative announced in April on rural broadband and the State-led intervention. It is an issue that has come up repeatedly over the past number of years and certainly during the most recent canvas, particularly in the most rural areas. However, this issue was not limited to such areas, as companies with inadequate services were also identified in places on the outskirts of Galway city, such as Bushypark. In a Dublin context, this is comparable with a company in Ranelagh, Firhouse or somewhere similar not having adequate high-speed broadband. If one goes further afield to areas that are only eight to ten miles from Galway city, such as Tullykyne, Knockferry or Rosscahill, one finds that private companies have been unable to provide adequate cover. Is the Minister confident of approval or are hiccups likely in respect of European Union approval under the State aid rules? When does the Minister believe construction of the first tranche will take place? Time is of the essence.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

There has been a shift in the European policy approach to this issue, which is that the Commission is looking for a future-proofed system. Whereas it was previously technology-neutral, without specifying the type of network, European policy now essentially states that a fibre-based solution is required. Therefore, the answer to Deputy Kyne's question is that from the regular contacts the Department has had with the Commission about this issue, I am confident that approval will be forthcoming for the plan.

The Government approval for this tranche encompassing almost 1,100 villages about which Deputy Wallace asked is up to €512 million. I cannot be more precise than this, but that would be the cost of building out a new network. However, were one to leverage existing State properties, for example, it would deduct something from that figure, and the Government is of course working towards that end. The broadband task force I chaired myself was designed to remove obstacles and barriers that had traditionally existed and to encourage the leveraging of State assets that are in place, whether they are on State lands or whatever, which would mitigate that figure somewhat.

In addition, it is not acceptable that, notwithstanding the accelerating investment in urban Ireland, somewhere like Bushypark, which is less than three miles outside Galway city, has such a basic service. Therefore, considerable work and detail must go into the mapping exercise. It is painstaking, takes up a lot of time, is costing a lot of money and so on, but in conclusion, high-quality connectivity is absolutely essential for the future economic and social progress of this country, particularly the former. I was very pleased that last night, Counties Galway and Wexford were represented at an event organised by my Department at Google to announce the availability of the trading online voucher scheme to encourage more small to medium-size enterprises and microbusinesses to actually transact business online. Moreover, the local enterprise offices, LEOs, now are equipped to provide mentoring, other advice and backup to implement the scheme.

Mick Wallace (Wexford, Independent)
Link to this: Individually | In context | Oireachtas source

I welcome the State's intention to invest half a billion euro in direct state aid. A recent World Bank study of 120 counties found that for every increase of ten percentage points in the penetration of broadband, there is an increase of 1.3% in economic growth. Given that the private sector organisation that has earmarked provision for the Wellingtonbridge area is at least two years away from doing so, does this not mean that the European Union breaks its own rules sometimes? It bends over backwards to guarantee the maximum opportunity for private investors, sometimes at the cost of the people. It would be fine were the private sector in a position to do it straight away, but given that it cannot, does the Minister agree there is a strong argument that the European Union is fighting against economic growth by not allowing the State to invest in what is really important for rural areas and would help them to contribute to economic growth? Moreover, this undoubtedly would lead to greater employment in rural areas.

Seán Kyne (Galway West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In respect of the roll-out of rural broadband, has a decision been made on whether one company will receive a tender or whether it will be split into regional areas? Second, how does the ESB (Electronic Communications Networks) Act 2014, which was passed some time ago, fit in? Presumably it will be ready in order that a company may co-operate with the ESB to use its infrastructure for direct roll-out and the direct provision of high-speed broadband into people's houses.

The provision of broadband to rural areas is a necessity at this stage. It is not a luxury; it is a requirement for those who work at home. People have told me that they have to drive to their local GAA club to get coverage because the area in which they live does not have adequate cover.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context | Oireachtas source

For those of us who support the noble post-war aspirations that led to the European Union project, it is sometimes a cause for concern that the degree of intrusion by the apparatus of the European Union can be excessive. It is frustrating that one Directorate General is urging that quality of connectivity is a sine qua nonfor economic and social progress, while a different Directorate General dealing with competition demands that we comply with the letter of the law with a very strict rule book. We are, however, taking great care that our submission passes muster and the project will go out to procurement at that stage.

In regard to Deputy Kyne's question on whether the project will be awarded to one company, a decision has not been made in that regard. My view is that it ought not to be only one company. To some extent that will be determined by the precise economics of putting it out to procurement, for example, in terms of one company operating in Munster and a different company dealing with the rest of Ireland.

The ESB's project will proceed in parallel and I hope it will be ready to start stringing cable at the end of this year or, certainly, by quarter one of next year. Vodafone has been selected as the joint partner on foot of the expressions of interest process for the project. Detailed and conclusive work has been done on the project and I hope that a formal announcement will be made in the next couple of weeks. The aim is to reach 450,000 premises in rural Ireland. This is a joint commercial venture under the auspices of the ESB and Vodafone.