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Dáil Éireann debate -
Thursday, 29 Jun 2000

Vol. 522 No. 4

Adjournment Debate. - Electronic Commerce.

I want to draw the attention of the Minister to the fact that while the plan to roll out the broadband programme throughout the country is going ahead, there is now a need to focus on building on the fibreoptic system which already exists throughout the country. I would like to see that system extended in a thorough way to all the regions so that the towns and villages beyond centres of population, and including those centres of population, can play their part in the development of e-commerce and information and communications technology right throughout the country. The fibreoptic cable is in place in many parts of Ireland, including Kilkenny city, which I give as an example. It is now up to a partnership of Government and private enterprise to ensure that we build on the cable that is already in place.

There are many advantages to doing this. In Kilkenny, while we have spent £1 million through the Eircom project on providing the broadband and the necessary education and hardware to communities to enable them to participate in the development of information and communications technology, it is now essential that we provide the industry and the jobs that are attached to this development worldwide. The Government should focus on the participation of schools and should link up schools within regions. There is also the possibility of linking up villages and towns to ensure that they are ready to participate in e-commerce development.

I acknowledge the spend of nearly £4 million supported by European Union funding on the development of the infrastructure in Kilkenny city. I suggest that, in relation to the IDA development in Kilkenny and the establishment of a digital park, far more could be done by the IDA and others in relation to this broadband development and that park to attract high-tech industry to Kilkenny and fill the two factories which have been vacant for the past two years.

As a model, Kilkenny city could be taken as a virtual campus, and the infrastructure which is in place could ensure that the project which is being undertaken by the Carlow Institute of Technology, by NUI Maynooth and Queen's, could be a virtual third level campus in Kilkenny city. This would be using sensibly the Government investment in this type of infrastructure in Kilkenny.

In relation to Eircom, a further spend is necessary, in partnership with the Government, arising from its commitment to the sale of shares and the flotation of Eircom. The Maltings project in Kilkenny could build on that investment because the infrastructure exists in the regions and in Kilkenny city. The Maltings can benefit by virtue of the fact that huge investment has been made already in education, including marginalised communities, putting in infrastructure and involving industry. The Maltings project would bring together information and communications technology projects in an incubation centre. The backdrop of a medieval city like Kilkenny, using information and communications technology as a source of jobs and a source of education, could be a model for others to follow.

Portals are also very important. It is time for the Government to go into partnership with the many computer based companies that now exist in Ireland to roll out, on the back of the broadband infrastructure, portal development and other information technology developments. If we do this we will be capitalising on the huge amount of money which has been invested.

Let me also focus on decentralisation. We now have a programme of decentralisation being considered by the Government. In the roll out of that decentralisation, this broadband infrastructure and the fibreoptic cable will play a huge role. In Kilkenny, and in the south-eastern region in particular, we are poised to play a major part in that development. I suggest in this regard that the Government should focus on and package that decentralisation around the development of that fibreoptic network. It is essential that we do this in order to involve everyone. If we use the structure that is there, if we build on it in terms of jobs, education, linking towns, villages and urban centres, if we move to e-Government and e-local government we will embrace all of the communities, those who are well off, those who are marginalised and those who are enjoying the benefits of this economy. It is essential for the Government to focus its spend in this area and in Kilkenny in the future.

I compliment Deputy McGuinness on raising this important issue here tonight. I am aware of the major role he has played and of the deep involvement he has had with the Minister for Public Enterprise in ensuring that Kilkenny has benefited from this crucially important infrastructure.

When this Government took office the telecommunications market was very different from what it is now. It was not competition friendly. Growth in the market followed the Minister's decision to liberalise it in December 1998, ahead of schedule.

The telecommunications market is now much more than just voice telephony, as can be seen in the explosive growth in Internet usage. The numbers using the Internet have more than doubled over the past year or so, and it is my belief that the Internet and e-commerce offer Ireland a great opportunity for economic development, social cohesion and growth.

This belief is reflected in the Electronic Commerce Bill passed earlier today by the Dáil. When the Bill becomes law, trade on the Internet will have the same legal status as that represented on paper. Ireland will be to the forefront in this regard, and the opportunities presented by this enabling legislation will be open to businesses all around the country.

Developments in information and communications technologies show the potential to radically change the influence of location and distance-to-market on economic and social development. Therefore, it is of paramount importance that all the regions of Ireland enthusiastically grasp these new media.

A major facilitator for growth will be the deal that the Minister signed with Global Crossing last summer. As a result of this deal, the international broadband capacity in and out of Ireland will be better than ever before. It firmly places Ireland on the world stage and companies locating here will be in a position to exploit the myriad of opportunities that the information age has to offer. That deal alone – and the project is on time – multiplies the capacity out of Ireland fifteenfold in the short term. The price of this connectivity is a fraction of the price available on the world market and the potential for growth of this project is immense as the deal also includes rights to potential capacity or "dark fibre", the gold dust of the information age.

Ireland will have 300 gigabytes capacity by the end of this year compared with a total bandwidth capacity in the EU of 1,300 gigabytes. By 2001, predictions are that Ireland will have 1,000 giga bytes international capacity compared to 5,000 for all of the EU.

Building on the initiative with the Global Crossing international connectivity project, the Minister has developed plans to roll this connectivity out to the regions in Ireland. An allocation of up to £150 million national Exchequer and European European Regional Development Fund funding has been made under the national development plan for communications and e-commerce measures to grant assist investments in less developed areas of the country. This public funding should exert leverage of the order of £500 million total investment. This puts the total investment in broadband infrastructure as a result of these initiatives at well over £700 million.This new investment taken together with my previous initiatives will go a long way to ensuring Ireland is placed in the centre of the international e-commerce map. International commentators and researchers have already dubbed Ireland one of "the broadband four". We must ensure we build on our success and continue with the strategies we have been successfully pursuing.

The Minister will certainly not preside over a programme which excludes any sector of society. Her initiatives to date may have had a business focus but we have to start somewhere. She has insisted that each of the 13 different projects supported last year, including one in the Deputy's own city, had a strong regional bias and a high public service element. Under the recently published national development plan, she will insist that the projects funded reach beyond the main trunk networks to peripheral and less developed regions and ultimately to more isolated communities. The Vsat call, in which up to £1 million will be available for satellite broadband services in the regions, is going out tomorrow and that again is about bringing bandwidth to outlying areas.

To date, towns like Ballina, Kilkenny, Carrick-on-Shannon, Drumsna, Roscahil, Oughterard, Spiddal, Askeaton, Doonbeg, Castlelyons, Doneraile, Fermoy, Bunbeg, Burtonport, Dunkineeley, Dundalk, Thurles, Carlow and Clonmel have benefited from the broadband fibre optic programme.

The Minister left out Kilgarvan.

The Internet revolution and the emerging knowledge economy demand new ways of thinking, working, interacting and commuting. The information society and investment in the proper infrastructure can release much needed resources.

As a nation our people are our most important resource. They and their skills have led to the economic success story of the past decade. Ensuring all our people have the requisite tools and access to the infrastructure required for the information age is one of the most important objectives for our country.

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