Vol. 489 No. 5
6 Mr. B. Smith asked the Minister for Public Enterprise the investment proposals in progress or planned to upgrade the telecommunications infrastructure in the Border regions; the level of funding, if any, that will be provided; the particular projects, if any, that will be assisted; and the level of funding per project. [8406/98]
9 Mr. Quinn asked the Minister for Public Enterprise if she has satisfied herself as to the level of investment by Telecom Éireann into the communications network; the discussions, if any, she has had on this matter with the board of Telecom Éireann; and if she will make a statement on the matter. [8391/98]
I propose to take Questions Nos. 6 and 9 together.
I met the board of Telecom Éireann last week to hear its views on recent reports which had expressed concern at the level of investment in advanced telecommunications infrastructure. The board informed me that the company's plans for the next five years involve a significant level of investment in the core telecommunications network as well as in broadband infrastructure. Telecom Éireann plans a capital investment of £350 million for the financial year l998-99.
As far as the Border regions are concerned, the INTERREG programme agreed by the European Commission in February 1995 aims to assist internal border areas of the European Union in overcoming the special development problems arising from their relative isolation within national economics and within the Union as a whole.
In January 1996, approval was granted to Telecom Éireann for EU assistance for a number of telecommunications projects under the INTERREG programme. These projects involve investments totalling £11.6 million in fibre optic cabling and the upgrading of exchanges to advanced ISDN technologies in the Border counties of Donegal, Cavan, Leitrim, Louth, Monaghan and Sligo. A total of £5.8 million of this investment is being provided by the EU.
To date, a total of £4.4 million has been spent under the INTERREG programme and in this year it is planned to spend a further £5 million on the further roll-out of fibre optic cabling and the upgrade of additional exchanges in the Border regions.
The balance of the programme, comprising £2.2 million in expenditure, will take place in 1999. Apart from this EU-funded investment, Telecom Éireann will spend, as part of its ongoing capital investment programme, an additional £2.6 million on the development of telecommunications infrastructure in the Border regions in 1997-98 and 1998-99.
The Deputy will be aware that Telecom Éireann is no longer the only provider of telecommunications infrastructure in this country. Since the liberalisation of infrastructure on 1 July 1997 there are other operators in the market who are also investing in the country's communications network.
I thank the Minister for her detailed reply. Will she agree that in view of the most recent NESC report of December 1997 on population distribution and economic development, which clearly demonstrates that some Border counties, particularly County Cavan, have not benefited to any substantial degree from recent economic progress, it is essential to put in place the most up to date telecommunications network to ensure we have a chance of obtaining some welcome inward investment? I am sure the Minister will agree that the Border counties need particular economic development. Will she insist that her own Department and the appropriate State agencies adopt such a policy and implement investment decisions accordingly to ensure we have an infrastructure that will help to attract much needed new jobs and maintain existing employment?
I agree in a broad sense with the Deputy. The report to which he referred highlighted the position in County Cavan. As I stated in the reply, a great deal of INTERREG funding has been allocated to the areas but the Deputy is correct in what he said. Deputy Yates raised the question earlier of the need for much more investment in the whole telecommunications infrastructure. There is concern about this because one company, if not two, was quoted as saying that one of the reasons it did not come to Ireland was the lack of sophistication in our telecommunications sector. There is a need for investment in infrastructure and the lowering of charges. I share the Deputy's wish that there should be an influx of investment in County Cavan and I hope the INTERREG programmes will help in that regard. We are preparing our programme for the tranche of funds for 1999 onwards and I will seek to ensure that the Border counties are adequately catered for in the proposals we will put forward.
As this is the first opportunity we have had in the House to discuss the issue of Telecom Éireann since the recent agreement, I congratulate the Minister on achieving a result in getting an ESOP partner and the agreement of all parties concerned to a Telecom flotation. I join her in recommending that to the members of the unions who will vote on it.
I do not want to go into that matter in detail because it was dealt with effectively in an earlier question, but in regard to the intended sale of Cablelink, is it the Minister's intention that that money will be invested in the areas of Telecom discussed earlier or will the Government take the money?
I will be proposing that Telecom retain the rewards of the sale. As the three reports to which we have referred emphasised the need for investment in areas of Telecom, I would hope the company would go forward along those lines. My proposal to Government will embrace the proposal that Telecom retain the finance.
I am very interested in this question. Will the Minister tell the House if there are any proposals to treat the island of Ireland as a single communications zone and thus reduce the need for multi-numbered telephone numbers when ringing Northern Ireland? This is of particular relevance to many people living in the Border region who have to make an international call to talk to someone who may live down the road. That seems ridiculous.
That is an entirely separate question.
Has the Minister done anything?
We are examining proposals in the whole North-South context in the Department but I do not want to say any more on that.
Is the Minister aware that when the level of investment by Telecom over recent years is analysed, countries like Austria and Switzerland invest three times per capita what Ireland invests? Telecom invests only 20 per cent of its revenues whereas the EU average is 30 per cent. Will Telecom meet its commitment that all mainline telephone users will be linked to a digital exchange in 1999? The company set this objective some time ago but it will require substantial investment. Will that be met?
Telecom did set that objective. I am aware of the disparity in the percentage investment figures. I was very open and straight-forward with the people I met in Telecom last week on the basis of the three reports the Deputy cited on an earlier question. There does not seem to be a sufficiently strong impetus in the board to push forward in this regard.
I thank Deputy Stagg for his kind remarks about the ESOP arrangement. The board of Telecom may not fully go along with my wishes but when the votes are cast and the matter is fully concluded, and following the sale of Cablelink, I hope that arrangement will give the company freedom to examine the issues which require their attention and which we have discussed this afternoon. There is a realisation on the part of the board that all the reports contain similar recommendations.
Will we have a uniform digital exchange by next year?
I will ask Telecom to let me know the up to date position on that.
