Denis Naughten
Question:41 Mr. Naughten asked the Minister for Public Enterprise the action she intends to take to address the lack of accessibility and competition in the broadband sector; and if she will make a statement on the matter. [4248/02]
Priority Questions. - Telecommunications Services.
The provision of telecommunications services is a matter in the first instance for the companies which now operate in a fully liberalised market. My responsibility is for public policy in the sector within which the companies operate. The widest possible availability of competitive services has been an important objective of telecommunications policy.
In 1999, under the National Development Plan, 1994-99, €26 million was made available to support the roll-out of broadband to the regions. Support was given to 13 projects which rolled out broadband nationwide and which are now completed. These entailed the roll-out of broadband services in the Border, midlands and west region and the south and east region by Eircom, HEAnet, Esat, Chorus and NTL.
The figure allocated to telecommunications initiatives was significantly increased under the National Development Plan, 2000-2006 to €200 million. Two thirds of this will be spent in the Border, midlands and west region and a third in the other region. A first call for proposals was run in 2000 and, on foot of submissions I received, I signed nine contracts for grant assistance of €55 million at the beginning of 2001, which will result in additional investment in the regions in broadband infrastructure. The projects will be completed over the next two years and entail overall investment of €160 million. Additional services involving a number of broadband technologies will be provided throughout the regions by Esat, Chorus, Nevadatele, Crossan Cable and ESB Telecom.
I ran a second call for proposals last year with a submission deadline of the end of October 2001. This call allowed for submissions by local authorities as well to provide open-access telecommunications infrastructure. A total of 31 proposals was received from the private and public sectors and were evaluated independently. As a result, some local authorities were asked to commence non-binding procurement processes. It is likely that a number of private sector submissions to the second call will also be supported. The local authorities in question will be made public within three weeks.
I thank the Minister for her reply. Ireland is ranked 27 out of the 28 OECD countries for the provision of broadband services, behind even Mexico and Portugal. In light of that and the fact that 40% of the funding for the first call was returned, is there not a lack of competition within the sector which is delaying the provision of investment outside Dublin? There is regulatory uncertainty over the communications legislation and difficulty in obtaining planning permission. The inconsistency throughout the country in planning permission is creating difficulty in the roll-out of broadband technology. What does the Minister intend to do? It is not just an issue for the companies involved; the Government must step in because the only access available is ISDN which is marketed incorrectly as high speed but which is only less slow than the ordinary copper cable.
Planning permission resides in each county council or the planning authority.
The Department of the Environment and Local Government also has a say.
That is not my Department. The Deputy knows I do not deal with planning permission.
The Minister can talk to her colleague.
Local authorities decide on planning applications. That is how it was when I served on a county council and it has not changed.
However, they must have regard for Government policy.
I am sure the councils do in Kildare and Roscommon.
I accept that, in the earlier call, some companies did not take up their contracts because it coincided with a dip in the technological sector. Some companies went out of business at that difficult time. The current call, involving local authorities, which the independent group is assessing, will be significant because local authorities dig up roads and so have the engineering experience. There is 90% grant aid available to them, including to Roscommon, and this will make a difference. I hope to make the formal announcement soon.
Foreign direct investment is inhibited because of the absence of competition. We need an alternative open-access network, the basis of which we have in the semi-State companies. Will she move in that direction so that it can compete with the existing duopoly?
Let us see how this call for proposals goes. Every metropolitan and rural area will be served directly by broadband. It will mark a huge change and will be an interesting, challenging and exciting development.