Dáil debates

Thursday, 8 October 2015

Topical Issue Debate

Rural Broadband Scheme

3:00 pm

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

It is widely acknowledged that the Internet is a key tool in reducing poverty and developing prosperity in any region. A report commissioned by the World Bank stated that an additional ten broadband lines per 100 people increased the gross domestic product of a country by 1.21%. It is clearly demonstrated that rolling out high-speed broadband to every home in the country would significantly benefit the Irish economy. I have raised the matter before and I wrote to the Minister about it this week. The Government has failed to ensure broadband is available to all the families and businesses across rural Ireland, so much so that we have the most pronounced two-tier coverage in Europe.

My constituency, Cavan-Monaghan, is a sprawling rural constituency, and is geographically the largest in the country. Its rural make up and the topography of drumlin countryside mean whole areas are ill-served and, therefore, severely disadvantaged in their ability to compete in business, exam preparation and all the other uses people make of high-speed broadband. These areas are unable to compete with other parts of the country, especially the large, populous cities. This discrimination must end. While next generation access coverage in Ireland stands at 71% of households across the country as a whole, it stands at only 8% for rural areas. We have a major issue to address.

The Irish Rural Network estimates that 10,000 jobs are lost in rural areas every year due to poor broadband service and it has been brought to my attention in the recent past that people are not only considering relocation from their rural home bases, but some have already relocated for business, education and other reasons, compounding the exodus rural Ireland has suffered during recent years due to the economic downturn. In order to ensure regional and rural areas are not disadvantaged, additional State investment is required to deploy next generation infrastructure outside the main urban centres.

I am delighted that an announcement has been made since I tabled this matter. Will the Minister outline the plans to address the continuing failure on the part of all providers, including the State and the other entities which also have a responsibility, to ensure equal access across the jurisdiction to high-speed broadband affording households, businesses and all users throughout rural Ireland the same quality of service and ability to compete on a level playing field as their city-dwelling fellow citizens?

3:10 pm

Photo of Alex WhiteAlex White (Dublin South, Labour)
Link to this: Individually | In context | Oireachtas source

I thank Deputy Ó Caoláin for raising this matter. The Government recognises that high-speed broadband network deployment is of strategic importance for growth and innovation in all sectors of Ireland's economy and society. On 29 September last, the Government approved an allocation of €275 million for the national broadband plan which will provide the initial stimulus required to deliver the State intervention. Combined with commercial investment, this will ensure 85% of Ireland’s premises have high-speed broadband by 2018, with 100% coverage by 2020.

I might just remark on the question of what the Government has achieved. We can certainly come back to this in detail in due course if we get an opportunity to do so. It is envisaged that by the end of 2016, which is just over a year from now, high-speed broadband will be available to 1.6 million addresses in Ireland. It is currently available to well in excess of 1 million addresses. This compares with a figure of just 300,000 in 2011. While that might not necessarily be a success in the Deputy's eyes, it is certainly not a catalogue of failure on the part of the Government. I will, when I get an opportunity to do so, come back to the question of how we measure the success of what we are doing.

The provisions set out in the capital plan give an indication of the scale of the investment that is envisaged. As I have said previously, however, the plan does not set out the full cost. The full contract period cost of the programme will emerge out of the tendering process that is about to begin. Ireland’s proposed broadband intervention strategy, which was published on 15 July last, sets out a series of detailed proposals by the Government in respect of State intervention. It sets out the key elements of the intervention, what services are proposed and how they will be delivered. It outlines various aspects of the proposed intervention, including the type of network envisaged, the minimum speeds being demanded, the length of the contact for services and whether the network should be public or privately owned. All these matters were set out when the strategy was published on 15 July last.

The intervention strategy has been developed following intensive engagement with industry and wider stakeholders. The strategy is also informed by detailed input from the expert advisers who were commissioned by the Department to produce the seven expert reports which are published on www.broadband.gov.ie. The key principles underpinning the proposed intervention strategy include the delivery of high-speed broadband to all premises that will not be able to access such services through commercial investment alone. The strategy aims to address conclusively current and future connectivity deficits throughout Ireland and to ensure services are affordable, competitive and on a par with those available in the commercial areas. The strategy will ensure value for money and compliance with EU state aid guidelines through a technology-neutral procurement process.

I will give the House an idea of the profile of the area that is expected to be addressed by the State part of the intervention strategy. The commercial investments will be taking place in parallel with that. The State intervention will cover 96% of the national land mass of the State. This involves approximately 30% of the homes and businesses in the State. Having given us a reasonable account of the experience in the constituency he hails from, Deputy Ó Caoláin will appreciate that just under 30% of the homes and premises in this country are located on approximately 96% of the land mass. For example, practically all farms are in the State intervention area as they will not be covered by the commercial sector. We have given this information previously, but it is worth repeating.

If the State intervention we have embarked on was a road network, which it is not, it would be 100,000 km of road network. I mention that to give people an idea of the equivalence. It includes all the offshore islands and covers 757,000 postal addresses. 1.8 million citizens, 38% of the national labour force, 34% of white collar employees, 89% of farm employees, 94% of farms, more than 62,000 small and medium-sized enterprises, primarily micro SMEs, and 1,522 schools. That list will give the House an idea of what needs to be addressed by State intervention because the commercial sector will not deliver it. The commercial sector will go to approximately 70% of homes and businesses. This State intervention is necessary to ensure people who live in relatively remote areas throughout the country, including parts of Deputy Ó Caoláin's constituency, can enjoy the same access to high-speed broadband as those of us who live in cities.

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Of course what the Minister has outlined is very welcome. I am asking for a necessary assurance. I understand that, coincidentally, it is being reported today on local radio at home that the roll-out will not begin until late 2016. Will the Minister clarify that? The State element is vital because of the obstinacy of the commercial providers in failing to take on board the vast swathe of the population who live in the country and depend on broadband. It is critically important. I am not able to make international comparisons. Maybe the Minister can do so. We are talking about a period of five years to achieve this. Will the Minister give a sense of how it might be rolled out? Where will the initial works get under way? Why is there a delay until the end of the current year? That is what I was advised shortly before entering the Chamber.

Will the Minister elaborate on the points he has made, many of which I welcome? I want to be able to assure my constituents that this is a solid commitment that will not in any way falter in its delivery. That is the critical thing. I would like a guarantee regarding the development of broadband into the future. I want an assurance that the provision to be rolled out will keep pace with developments in technology and will not leave people who depend on the State roll-out at a disadvantage in future by comparison with the service currently provided by commercial interests.

I am responding positively to what the Minister has indicated. I want to see this project happen because it will be hugely important. In addition to having implications for the responsibilities of the Department of Communications, Energy and Natural Resources, it offers the potential for the retention of existing jobs in rural Ireland and the creation of new opportunities for real jobs across rural Ireland. That is what broadband represents. I expect the Minister to confirm that there will be a real cross-departmental commitment behind this. If the Minister for Jobs, Enterprise and Innovation is not taking a direct interest in this, I would expect that he will do so. I fully recognise the value and worth of what must and can be done. I hope the Minister is assuring us it will now be done as quickly as possible.

Photo of Alex WhiteAlex White (Dublin South, Labour)
Link to this: Individually | In context | Oireachtas source

I will complete the picture. Following the completion of a mapping exercise this time last year, I published an interactive map that allows any citizen or public representative to go online and see what areas of the country are to be covered by the private sector and what areas require State intervention. Areas in the latter category are depicted in an amber colour on the map, which can be seen on the website I mentioned earlier. The map allows people to see all the areas in respect of which the private sector has made a commitment to deliver broadband. The other area that can be seen on the map, the so-called amber area, is the 96% of the land mass where State intervention will have to take place.

This is a perfect example of where it is necessary for the State to have an enduring role. We have had a great deal of debate about the role of the State in a modern economy. It seems to me that if the commercial sector will not deliver the infrastructure that people need, the State must intervene to deliver it. I can give the Deputy an absolute assurance that this is what we are doing.

4 o’clock

When I got this job last July, I looked at the various priorities within the Department and this was the most important one for me. Hardly a day goes by that I am not involved in the planning and delivery of this project. Very senior and dedicated civil servants are working with me on it and it will be delivered. It will require continuity in terms of a commitment from the next Government. This is a very important infrastructural imperative for the people of Ireland and the economy. It will require continuity, no matter who is in this position, whether it is me, Deputy Ó Caoláin or someone else. That is extremely important.

The Deputy asked what guarantees I can give. I mentioned the implementation strategy earlier. Future proofing the provision of high speed broadband is one of the issues we have integrated into our planning. We want to ensure, whether it is fibre or some other technology, that we will not have to go back to it in five or ten years time. It will be future proofed in the sense that we want to do it once and do it right. That is what I keep saying, that we will do this project properly and do it in a way that is future proofed.

While I do not have the exact figures in front of me, there is significant interest in the European Commission and in other countries in what we are doing here. The private sector, in fairness to it, has driven much of this work. We have driven the private sector and it is driving development. We have SIRO, we had the legislation relating to the ESB and Vodafone, and Eircom, now Eir, has invested a lot in this area. Working in parallel with what the private sector is doing, we will deliver this and ensure that we get it over the line. Whether it is me or someone else, this has to be done not just for the Deputy's constituents, but for all of the people of Ireland, particularly those in rural Ireland who should not be excluded from the benefits that broadband brings in terms of business, education, interaction with public services, arts, culture and the myriad other services that improve peoples' quality of life and help them to do business.

The Dáil adjourned at at 4.05 p.m. until 10 a.m. on Friday, 9 October 2015.