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Dáil Éireann debate -
Thursday, 12 Apr 2001

Vol. 534 No. 5

Adjournment Debate. - Communications Infrastructure.

I thank the Ceann Comhairle for the opportunity to raise this serious matter. Donegal has suffered from a lack of infrastructural development, be it road, rail or telecommunication infrastructure. At a time when this Government, through its national development plan, is underpinning the importance of developing fibre-optic and broad band communications, we in Donegal were shocked to read in The Irish Times on Friday last, that Eircom has pulled out of the State subsidised 37 million project to provide both fibre optics and the dual subscriber lines technology to the Border, midlands and western region. This affects Buncrana in particular.

The technology would have provided high speed Internet multi-media services over ordinary telephone lines. Donegal was looking forward to the benefits of the funding which the Government had committed. Eircom was awarded a 12.4 million contract for the project under the national development plan as a means of bridging the growing digital divide between Dublin and the regional towns. However, Eircom management has vetoed the project according to the newspaper article.

I want to confirm whether the project is gone and what we do now. I want a commitment that we will not give up and that an alternative company will be brought in to ensure that this proposal and this long awaited project brings vital telecommunications infrastructure to my area. I want an undertaking that this will not be hindered by Eircom's withdrawal, should that withdrawal be confirmed. It is understood that management dropped the plan because of global retrenchment in the telecommunications market and a sceptical approach to expensive new technologies such as DSL. It is strange that places such as Donegal are seen as "expensive." Expense would be no hindrance in other main centres. We should be supplied with this facility, particularly as the money is provided through the national development plan.

The people of Donegal have worked hard to overcome the serious implications of recent job losses. Everyone in every sphere has moved to do what is asked by the IDA, Enterprise Ireland, State bodies and those in the know. We have moved toward diversification. Even the county council is running ECDL courses to bring us up to speed. FÁS, the local partnerships, the Leader groups, community groups are all pushing computer education. Those who have lost their jobs in the recent years rebelled initially against computer training but now that they have done courses they are proud of themselves for the experience they have gained. There are new companies in Moville, such as Iontas and there are other computer companies in Buncrana.

We have risen to the challenge but we need an IT infrastructure developed and enhanced. We deserve positive discrimination. We not only need the line that was supposed to be coming, but we also need a Malin Head to Mizen Head approach, preferably starting at Malin Head and moving to Mizen Head. We need an east-west link within Donegal. I implore the Minister to act. I know there is commitment in Government to supply what we were given funding for.

If it is confirmed, I deplore Eircom's action in pulling out of such an important aspect of the infrastructural development of my area. Broadband technology is recognised by industry as the only way in which our economic growth can continue. Donegal needs such growth more than any other county. I do not agree that Donegal is a peripheral county but if this infrastructure is not provided to assist companies to grow, irrespective of their physical location, the county has no future. This is a very serious day in my political career and I urge the Minister to find an alternative company to take up this proposal.

Last Friday, 6 April, The Irish Times reported that Eircom had pulled out of a national development plan supported 37 million project to provide fibre optics and digital subscriber line – DSL – technologies to the Border, midlands and western region. The contract offered to Eircom by the Minister for Public Enterprise was in fact for a national project which covered the south and east region as well as the BMW region.

Eircom was offered this contract under the first round of funding announced by the Minister for Public Enterprise in January of this year. Under such a contract, Eircom would have received up to 12.4 million in NDP support, with a total project cost of 36.7 million. Through the contract, Eircom would have been supported by the Exchequer and the European Regional Develop ment Fund in providing DSL technology to a large number of Eircom switches in virtually every county in Ireland. This technology would have enhanced Internet access in many parts of regional Ireland. In particular, it would have allowed for high speed Internet access at small business and residential level.

Despite some flexibility being offered by the Minister to Eircom, it has decided not to proceed with the contract. This is the result of a review of capital infrastructure within the company. From a national communications policy perspective, the Minister for Public Enterprise considers it unfortunate that the incumbent telecommunications company, Eircom, is not planning to offer extensive DSL services at this juncture. Most incumbents across Europe, including Deutsche Telecom, BT and France Telecom have decided to do so on an extensive scale.

However, the Minister continues to support a broad range of communications infrastructure projects under both NDPs which will ensure a high penetration of broadband technologies around the country. In the specific case of Donegal, the withdrawal of the Eircom contract will restrict the level of Internet service offered by Eircom in that county but only to the same extent as it is being limited in other counties. Donegal has, however, received extensive allocations of NDP communications measure funding.

In 1999, Eircom was allocated 2.4 million in INTERREG aid for the deployment of a 95 kilometre fibre link along the west coast of Donegal from Bunbeg to Donegal town, and from Dunfanaghy to Falcarragh. In all, 71,000 people will benefit from this new improved infrastructure. The total cost of this project is 4.737 million and the EU aid element is 2.3685 million. Work is in progress and is expected to be completed in the first half of 2001.

Under the National Development Plan, 2000-2006, the Minister is supporting communications infrastructure in Donegal being carried out by Chorus. This project, at a total cost of 17.8 million, involves a wireless link from Castlebar to Buncrana via Ballina, Sligo, Donegal town and Letterkenny. The Minister is also supporting a national project with ESBI at a total cost of 49.2 million. This project involves the deployment of up to 1,107 kilometres of fibre optic cable to 17 locations around the county by means of a fibre wrap on the existing electricity network. The fibre will be provided to Donegal by two routes, from Sligo to Buncrana via Ballyshannon and Letterkenny and from Dundalk to Ballyshannon. As these projects are implemented, the range of broadband services offered in Donegal will increase substantially and should result in better services and more competitive pricing.

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