Brian Ó Domhnaill (Fianna Fail)

I thank the Leas-Chathaoirleach. This is a great relief to me. I was going to blame Senator Wilson for it but I had better not do so.

I welcome the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, to the Chamber. I am delighted to see him here because, from a personal point of view, I have admired the new, fresh approach he has taken since his appointment when considering the issues of communications and energy. He is like a breath of fresh air for the Department and I wish him luck. He certainly has the support of this side of the House.

I wish to put a number of points in context. Four years ago, approximately 30,000 people in the country subscribed to broadband. By the end of December, this figure will be 700,000. In anybody's outlook, this is a major progressive leap and it must be welcomed. It was stated that little was done during the past year but the facts do not reflect this. The facts outline that during the first quarter of 2006, approximately 320,000 people subscribed to broadband nationally and in the final quarter of 2006, this figure was approximately 500,000. The increase to 700,000 by the end of this year represents a jump of 200,000 in the space of one year. This is not a lack of progress and neither does it outline that nothing has been done. It is a clear indication that broadband reaches members of the public who wish to avail of the service.

The facilitation of broadband coverage throughout the entire country is a key priority for the Government. It is reflected in the programme for Government and has been discussed repeatedly by the Minister, Deputy Ryan, and his Cabinet colleagues.

I am delighted the Independent Senators tabled this motion because it gives us an opportunity to raise broadband issues in a favourable manner or to raise concerns. Broadband must be central to the Government's priorities because it is important for driving the economy and providing world-class telecommunication infrastructure to homes in all parts of Ireland, whether it is used for small businesses or primary, secondary, third level or fourth level education. It is important that we have these facilities readily available.

Initially, the Government moved on the national group broadband scheme. While this was welcome at the time, unfortunately the uptake was low. There are probably a number of reasons for this, including the complicated, awkward nature of the scheme in the sense that the onus was on individual communities to come together, organise an application and work with providers and the Department. I am pleased the Department moved quickly to address this problem by rolling out the national broadband scheme, which will deliver a broadband service to the remaining 10% to 15% of the country where broadband is not available. The new scheme will assist many rural areas and I understand four companies have either tendered to roll it out or are being considered for this purpose. Perhaps the Minister will clarify the position.

It is argued that the schemes should operate in parallel. This would undermine the effectiveness of both schemes and lead to double subscriptions. It is important, therefore, to proceed with the national broadband scheme. Of the grant aid of €5.9 million available under the first scheme, the group broadband scheme, only €1.4 million has been drawn down to date. It is a matter for providers to ensure their claims are submitted to the Department.

Despite Government and private sector investment in broadband, the private sector is unable to fully justify the commercial provision of broadband in a number of areas. The new broadband scheme will aim to provide broadband services to areas without coverage. Some counties, including County Donegal, are proceeding with an innovative scheme, which works on a cross-Border basis to provide wireless broadband to many areas. Donegal County Council in association with the ERNACT network is progressing the scheme, which will cost between €1.2 million and €1.43 million and deliver broadband in the Border and maritime areas of the county, including Gweedore, Aranmore Island, Glencolmcille, Castlefinn, St. Johnston and Lifford, by the end of December. Full co-operation from the Department has been forthcoming to ensure the scheme succeeds. While teething problems have arisen, I understand the project is progressing and wireless broadband coverage will extend to 99% of the area covered by the scheme. The cost is relatively low and there will be considerable advantages in terms of attracting inward investment to some of the most geographically isolated areas of the west.

While I understand some of the concerns raised by Senators, we must work together to ensure the Minister and his Department are allowed to roll out the broadband scheme, as agreed in the programme for Government. I have full confidence that this will be the case.

The cost of broadband may concern consumers. As Senators are aware, broadband services have become very affordable with prices to the consumer now below the European Union average. Broadband is widely available at between €20 and €30 per month, as a combination of competition and regulation drives prices down. Ireland's current low ranking in the take-up league table for broadband is the result of the launch of the DSL service by Eircom being delayed by approximately 18 months and the lack of competition from cable broadband.

While I had major concerns about Eircom's ability to roll out broadband, the company appears to have woken up in the past six to months and its roll-out programme for providing broadband services in rural towns and villages is working in many areas. Many small towns and villages have access to broadband because Eircom decided to roll out the service, for which it is ultimately responsible. The Government has intervened to provide additional assistance where it is not economically feasible for a private company to deliver a service.

The Minister should ensure there is competition in the market for all consumers in all areas in order that prices for broadband remain competitive and are not increased. When the national broadband scheme is rolled out, broadband services will be available and will help people in many rural areas to avail of the scheme.

Henry McGarvey, an entrepreneur with Donegal links who was working for a large company in the United States contacted the IDA when he decided to establish a unit of his company's operations in County Donegal. As a result of his initiative, almost 600 jobs were created in the county. Several weeks ago, Mr. McGarvey spoke at a breakfast conference in the Shelbourne Hotel, a diaspora project aimed at attracting people to return to County Donegal. In his address he noted that the quality of the broadband service in areas of County Donegal, including Letterkenny and other towns, was better than that available in upstate New York. I commend the Minister and his Department.