John Deasy (Waterford, Fine Gael)
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Question 134: To ask the Minister for Communications, Energy and Natural Resources the cost to the Exchequer of the rural broadband scheme; if his attention has been drawn to the fact that the private Internet service providers that will be used to complete the broadband rollout are unable to provide Internet speeds any greater than the original dial-up connection; the effect this poor quality service is having on small rural enterprises that require fast broadband services to operate; and the disincentive that arises as a result to the creation of further business and employment by individuals in their own communities. [14543/11]

Pat Rabbitte (Dublin South West, Labour)
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Funding for the recently-launched Rural Broadband Scheme has become available from the European Economic Recovery Programme (EERP) through the European Agricultural Fund for Rural Development (EAFRD) administered by the Department of Agriculture, Fisheries and Food. A total of €13.413m from the EAFRD is available and this allocation, being 75% of the total, means a total available funding of €17.884m for the initiative. This funding will allow for expenditure up until the end of 2012.

It is important to point out that the eventual total cost of the Scheme will be determined by the final number of eligible applicants. Whatever portion of the allocation that remains unspent following the completion of the Scheme will be returned to the Department of Agriculture, Fisheries and Food for expenditure on its rural development programmes.

My Department is currently in the process of accepting applications under the scheme and later this year will carry out a procurement process to select a service provider who will supply the actual broadband connections and service to eligible applicants.

This procurement process will, inter alia, specify minimum speeds that must be met by the successful bidder. Whilst the full details of how this competition will be designed and run have yet to be finalised, I am satisfied that the scheme, by providing broadband access to those who do not have such access, will have a positive social and economic impact for the beneficiaries.