Leo Varadkar (Dublin West, Fine Gael)
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Question 354: To ask the Minister for Enterprise, Trade and Employment his view on the consequences for foreign direct investment of the Government's failure to keep up with other OECD countries on the roll out of fixed broadband and the development of new technology networks; and if he will make a statement on the matter. [25342/07]

Micheál Martin (Cork South Central, Fianna Fail)
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While the issue of broadband is a matter for my colleague, the Minister for Communications, Energy and Natural Resources, I am informed that broadband take-up continues to grow strongly in Ireland. At the end of June 2007 there were 698,000 broadband subscriptions, which represents an annual increase of 87%.

At the end of March this year the European Competitive Telecommunications Association calculated Ireland's broadband penetration at 14.3% compared to an average of 18.1% across the EU-25 countries that are monitored. Comreg estimates that Irish broadband penetration (including mobile broadband) in June this year was 16.48%. Of much more significance, however, is how broadband penetration is growing. Our growth rate is now 38% compared to 15% for the EU15. Accelerating broadband connections at this pace is rapidly shrinking the gap between Ireland and others.

Broadband availability is expanding and is not inhibiting our attractiveness as a location for foreign direct investment. Our international connectivity is competitive in the international market place. This has been a key factor in Ireland winning ground-breaking investment from Google and Paypal among others, for example. These companies rely on robust, resilient and extensive broadband networks for their business and Ireland provides this.

Multinational investment in Ireland continues to grow, with a focus on knowledge intensive activities which provide high skilled employment. The success of Ireland's performance in attracting FDI investment remains strong with 71 new business projects being negotiated in 2006 with new and existing clients, which will involve a total investment of €2.6bn over the coming years.

While broadband rollout continues apace, the Programme for Government contains a commitment to encourage a progressive shift to Next Generation Networks. The Department of Communications, Energy and Natural Resources is currently preparing a draft policy paper that will review current communications infrastructure policy. This will analyse policy options, in light of industry developments in relation to the optimum role for the Government in the planning and rollout of next generation broadband. IDA will provide comments on this draft paper when it is issued for consultation.