Terry Brennan (Fine Gael) | Oireachtas source

The national broadband plan aims to ensure that every citizen and business, regardless of location, has access to a high-quality high-speed broadband service. This will be achieved through a combination of commercial investment and State-led intervention in areas where commercial services will not be provided. The commercial telecommunications sector is currently investing approximately €2.5 billion in network upgrades. A total of 1.6 million of the 2.3 million premises in Ireland are expected to have access to commercial high-speed broadband services in the coming two years. This is an ambitious programme. Perhaps the Minister might confirm whether it is attainable in this timeframe.

On 24 November last, a public consultation on the national high-speed coverage map 2016 was launched. The consultation will close on 12 February next, in three weeks' time. The areas on the map marked blue will have access to high-speed broadband services of at least 30 MB from the commercial sector by the end of next year. The areas marked amber will require the intervention of the State. The map allows all members of the public, whether business or residential, to see whether their premises or home will have access to commercial high-speed broadband services by the end of next year or whether they will be included in the Government's proposed intervention.

It is anticipated that speeds of at least 30 MB will be also delivered through the Government's intervention. The network will be designed to cater for future increased demand from consumers and businesses alike. I understand, in tandem with the mapping consultation, intensive design and planning work is under way in the Department to produce a detailed intervention strategy. The strategy will address a range of issues in respect of the intervention, including the optimum procurement model, the ownership model for the infrastructure, intervention costs and likely market impact.

External advisers have been engaged to provide legal, economic, technical and financial advice on the various aspects of the plan over the coming two years. Following the public consultation and towards the end of this year a detailed procurement process will be undertaken to select a preferred bidder or bidders. The Department will design a tender in a way that maximises efficiencies and keeps the cost of the network build as low as possible. It is expected that the physical build of this network will commence early next year. This is a complex and ambitious project indeed. It is a key priority for Government and aims to address conclusively current connectivity challenges in Ireland.

In April last year it was proposed to the Cabinet committee on social policy that a cross-departmental process should be put in place to consider where Government may have a role in respect of new business potential for the post office network and other key concerns of the Irish Postmasters Union. Reports were provided to the Cabinet committee on social policy in July and September of last year confirming that progress had been made and identifying the further work that needed to be undertaken, including follow-up with relevant Departments. Subsequently, the Department of Communications, Energy and Natural Resources undertook follow-up discussions with a number of Departments to explore further the potential for possible new services. At the same time, the Minister met representatives of the Irish Postmasters Union. Together with his colleague, the Minister of State with special responsibility for rural economic development, Deputy Ann Phelan, the Minister held discussions with An Post.

Last October, approval was given for the establishment of a business development group, which was mentioned by other Senators, to examine the potential opportunities for new Government and commercial business which could be transacted through the post office network. This group will be chaired by the independent chairperson, Mr. Bobby Kerr, and will comprise representation from An Post, the Irish Postmasters Union, the Minister's Department and from the rural economic development area of the Department of Agriculture, Food and the Marine. The Minister said the first meeting of the group will be held tomorrow. The group will have the opportunity to call on representatives from other Departments and from public and private sector organisations as required. The group intends to provide an interim report by the end of next March and to conclude a final report by the end of June.

Potential new business opportunities for existing post offices are many and varied. There are a number of generic areas in which the post office network has potential in respect of new business, for example, over-the-counter transaction services for new products, similar to the services currently being performed by An Post through BillPay on behalf of various organisations; tax payment services for the local property tax on behalf of the Revenue Commissioners; new services for Government Departments which could include, for example, client identity and so forth and similar issues as mentioned by Senator Naughton; back office and outsourcing services such as those currently performed by An Post for the Revenue Commissioners; and banking and other financial services such as those currently performed by An Post on behalf of AIB. I am aware that a range of business and other practical implementation issues, including procurement, industrial relations issues, infrastructure and investment, would have to be addressed before any new lines of business could be introduced for the post office network.