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Dáil Éireann debate -
Tuesday, 26 May 1998

Vol. 491 No. 3

Written Answers. - Industrial Development.

Thomas P. Broughan

Question:

38 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the apparent loss of the Microsoft Company website to the United Kingdom. [12116/98]

John Perry

Question:

139 Mr. Perry asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has put in place to safeguard the computer industry, particularly in view of the recent announcement whereby Microsoft is unable to locate a conference in Ireland due to inadequate communication system in Ireland; the plans, if any, she has to undo the damage caused by the statement by the company; and if she will make a statement on the matter. [12219/98]

Bernard J. Durkan

Question:

157 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment whether Ireland has failed in its bid to secure an investment from a major corporation in the past year; the reason or reasons for this; and if she will make a statement on the matter. [12349/98]

I propose to take Question Nos. 38, 139 and 157 together.

I was very disappointed to hear, earlier this year that despite the best efforts of IDA Ireland and Telecom Éireann, Microsoft had decided not to relocate their European Internet "Mirror Site" in Ireland. Forfás, the IDA and my Department have made soundings of major users of advanced telecoms services, including Microsoft and other e-comerce or Internet related services, to establish their concerns and perceptions of Ireland. It emerged that there were perceptions that real competitive conditions were not seen to exist in the Irish telecommunications market. These perceptions, notwithstanding the fact that the derogation that has now been rescinded, only applied to voice telephony. It did not apply to data.

Nevertheless, major operators did not perceive the Irish market as being a modern regulatory and friendly environment for telecommunications investment. There was a concern that Ireland did not offer all the necessary peering arrangements for business operators. Peering is the complex software and contractual arrangement whereby Internet service provider companies inter-relate to each other.

The announcement by the Government this week of the decision to end Telecom Éireann's monopoly on voice telephony by the end of this year or one year ahead of schedule will go a long way towards removing any negative perception of Ireland from a regulatory standpoint. The Government is committed to ensuring that Ireland will have open competitive conditions in all aspects of the telecommunications business in order to attract the variety of international players so vital for future success in the age of rapidly increasing electronic commerce. My Department continues to collaborate with the Department of Public Enterprise, other relevant Departments and the industrial development agencies in this matter.
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