Dáil Éireann debate -
Thursday, 6 Mar 2003

Vol. 562 No. 6

Digital Hub Development Agency Bill, 2002 [ Seanad ] : Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

Mr. Coveney

I welcome the opportunity to speak on this Bill and that is has finally come before the House. Its purpose is to place the development company for the digital hub, Digital Media Development Limited, on a statutory basis and rename it as the Digital Hub Development Agency.

The digital hub refers to an area in Thomas Street in Dublin. The intention of the initial project was to cluster together Irish and international media companies, research and development companies and educational initiatives. This is a concept I welcome. It is creating a digital quarter in our capital city and it sends out a message to the public and, more importantly, to potential investors that the digital media business in Dublin is taken seriously by the Government and by Dublin city. It could be described as a flagship project to highlight our intention to keep Ireland as an attractive destination to attract investment in IT, software development and digital media.

While I welcome this Bill it is important to note that this is it only one, admittedly not insignificant, project nationally. It should be used as a template for other towns and cities across the country if we are serious about digital media development on a national basis and, more importantly, if we are serious about decentralisation outside Dublin. Digital media and information technology generally have the luxury, if the required infrastructure is in place, of not being located by necessity in the capital city or other major urban areas. By and large, their products can be sent and sold through a telecommunications infrastructure, if it is in place.

Before I speak generally about the Bill and other digital media issues nationally, I wish to refer to an article in today's Irish Independent about which anyone interested in the digital hub concept and the Bill will be concerned. The headline states: “Digital Hub battles cash flow problems”. It outlines the history of the digital hub, which is positive in many ways. The hub was established in 2001 with the intention and clear target of attracting 700 companies to employ up to 30,000 people, including residents and students, to produce products such as games, software and supports to the music and film industry, and it was to be developed through a public private partnership, a concept that appears to be questioned at some levels of Government. Some €130 million has been spent to date and six companies employing about 100 people have moved into offices in recent weeks. This is a welcome development. The Bill is to place the DMDL on a State agency footing to give it an increased ability to raise loans up to €10 million to finance its further development.

The article points out that the Minister, Deputy Dermot Ahern, said in the Seanad when introducing the Bill that the agency, as a commercial body, would be obliged to obtain its revenue from its own activities in future, despite that some support revenue clearly came from Government. Since its inception, the DMDL was promised operational support from the Government, and rightly so. The Government should be strongly supportive of the project. Some €2.5 million was promised in 2001, €2 million in 2002 and a further €2.3 million is promised for this year to ensure the future development of the digital hub.

However, through documents obtained under the Freedom of Information Act, we see that the digital hub has had serious cash flow problems since September 2002. The article states:

Documents obtained under the Freedom of Information Act 1997 show that the Digital Hub ran into considerable cash flow problems in September 2002. A letter from the Digital Hub's executive services team director . . . to . . . an assistant secretary at the Department of Communications, Marine and Natural Resources, confirmed "that Digital Media Development has been experiencing significant cash flow difficulties over recent weeks and is now in breach of the Prompt Payments Act, 1997". The communication claimed that the agency had not received a drawdown of its quarterly budget for July to September 2002 and requested more funds to pay suppliers, lawyers and equipment. It is understood that a process was put in train to provide DMDL with the drawdown of funds.

However, going into 2003, DMDL was warned that for its allocation of funds for 2003 it must not enter into contracts that would exceed its allocation [and rightly so].

In the subsequent weeks, the department point out that the DMDL had already overrun its annual operational spend sanctioned by the department for a three-year period. On 7 October, a communication . . . pointed out that DMDL had a €500k budget surplus that must be surrendered. It stated: "The Department of Finance takes the view that the surplus of €500k from last year plus the €1.5m already issued this year fully satisfies DMDL operational funding requirements for 2002. On this basis, the Department of Finance has advised that the remaining drawdown of €500k in respect of 2002 from this department to DMDL is not to be made."

"This means that the drawdown of €500k, which has recently been made, represents the final allocation of operational funding for DMDL for this year,".

I could go on but it is difficult to follow the detail of the article because it is complicated. The bottom line is that there is a serious concern about cash flow problems and there appears to be some uncertainty as to what money is available from Government. It appears that the DMDL made a conscious decision to roll over some of last year's funds into this year to pay expenses at the beginning of this year and, as a result, the Department of Finance is interpreting that as being that the DMDL did not use its allocation last year and therefore will not give it the full allocation promised for this year.

We need clarity on this, as does the digital hub. We are talking about significant sums of money –€500,000 is the sum about which there is uncertainty. Will the Minister of State outline clearly the position of the Department of Finance on the funding for 2002 and its implications for funding for 2003? This would give us a clear position of where the digital hub stands financially.

I wish to make some general comments about digital media nationally and the infrastructure that needs to be put in place to allow that to happen. It is a responsibility on us in this discussion to include the issue of where we stand at present regarding national telecommunications infrastructure. Clearly, the concept of the digital hub should not remain in Dublin.

It is fair to say that we have achieved high standards in some parts of Dublin in connectivity and telecommunications infrastructure. For example, the connectivity and services provided in City West are excellent and that is reflected in the number of companies that have moved there and flourished. However, the fact that it takes longer for an e-mail to go from Cork to Dublin than it does from CityWest to New York makes one realise the inadequacy of the national infrastructure and the connectivity from the regions to international destinations.

Let us examine the facts established by independent monitors of Ireland's performance in the availability of broadband access. In a recent World Economic Forum examination of world competitiveness for 2002 to 2003, Ireland ranks 51st in the nations examined. As I pointed out before when questioning the Minister with responsibility for e-government, we are behind countries such as Panama, Estonia, Chile, El Salvador, Romania, Argentina, the Czech Republic, Venezuela, Latvia, Brazil, Turkey, Costa Rica, Guatemala, Peru and Slovenia. As one might expect from that list, we are also behind all our EU counterparts. For a country that makes the proud claim to be the largest exporter of software in the world and that is a platform for American IT multinationals to sell their products into Europe, we have failed abysmally to put in place the necessary, as opposed to the desired, telecommunications infrastructure to allow this industry to continue to flourish and to encourage further investment into the country. It is to our shame that this list is available internationally and that people read it in magazines such as The Economist, Time, etc.

In case anyone feels that report treats Ireland unfairly, we should consider some other international reports. In the Economist Intelligence Unit's e-readiness ranking, which measures where a country is in relation to Internet opportunities, we rank 15th in the world behind America, the Netherlands, Britain, Switzerland, Sweden, Austria, Denmark, Germany, Canada, Finland, Singapore, etc. For a country that claims to be electronically competitive, we are far down the list.

An interesting article in The Irish Times in 2001 pointed out that a digital divide has emerged on class lines with a failure to develop a proper digital television service, preventing lower income groups from gaining access to e-mail and the Internet. Geographically the divide shows that high-technology is racing ahead in Dublin far quicker than elsewhere in the country. Although I welcome it, the digital hub is contributing to that problem. Some 19 Internet data centres were due to be completed in Dublin in 2003, but the total for the rest of the country is two. When converted to a priority ranking on a ratio basis it can be seen how miserably the rest of the country is treated for rollout of infrastructure and Internet readiness.

Despite having gone through a period of stability and prosperity, the Government has seriously neglected its responsibilities to put in place the necessary infrastructure to encourage inward investment and allow existing industry to grow and prosper at the same time as an international downturn in IT activity. Unfortunately this is resulting in Ireland becoming quite uncompetitive as a location for investment by major IT companies, which have contributed hugely to our economy.

There is also evidence from the business sectors. People from companies such as Apple, Iona Technologies – Chris Horne is very outspoken in this area – Microsoft, Dell and others are demanding the infrastructure they need to continue to expand their employment in Ireland and they want to stay here. Ireland is an attractive location on many grounds. We speak English and provide a good well educated workforce. However the key issue is infrastructure for which the Government has primary responsibility. Services that were provided in competing countries up to five years ago are only now being talked about here. Later I will deal with the small progress we have made, which is important to recognise.

The recent report of the Information Society Commission, which was established by the Government as an independent advisory body, points out starkly that broadband telecommunications infrastructure is increasingly seen as having an importance in the 21st century that will parallel that of electricity in the 20th century and railroads in the 19th century. That is a strong statement that needs to be taken on board.

Representatives from users' organisations have also made their views quite clear. Bodies such as Ireland Offline are conducting a continual campaign to improve service provision, infrastructure and connectivity. The consequence of not responding to these calls from the industry, users and independent groups established to advise the Government will be far more dramatic than many people realise. Many people see the IT industry as a niche industry. If we proceed as we should, it will have very positive implications as well as continuing to promote Ireland as a location for software development and IT investment.

To be fair to the Government there are a number of areas where it seems to have made some progress, which needs to continue. I welcome the fact that the Minister has recently established a strategy group to continually update him on the issues and what is required. However, I have some concerns that the group is not fully representative. It comprises users, consumers and small and medium enterprises, but not ComReg. If the regulator – or the enforcer as it will need to become – is not in the group it is difficult to come forward with credible recommendations. The Minister should reconsider the bodies on that group with a view to including the regulator or a representative from ComReg. It is imperative that she and her team be apprised of the recommendations that are being formulated and made. I would like the Minister to respond to that at the end of this debate.

I welcome Eircom's recent announcements. ComReg is beginning to show its teeth, which is positive. To be fair to the Minister that is partly due to his having given clear directives and made known his targets for new service provision. Eircom has realised that its monopoly in the market will not last forever and it will be forced to share its infrastructure, which has been such a problem over the past five years. Up to the last six months the Government failed miserably to tackle that problem. I recognise that progress has been made, albeit late.

There are three key issues for the consumer and small businesses relating to the provision of services. They need access, a choice of service provider and a choice of pricing. I urge the Minister and his Department to insist on a timetable for the provision of wholesale prices by Eircom, which it is required to provide under law and which ComReg has a responsibility to enforce. The Minister must drive this politically. Without wholesale prices for the use of the Eircom infrastructure we will never have competition in the market or service choice. This does not only relate to a flat rate always-on service, but also to a wide range of services. That must happen and the Minister must drive it. If he does not do so, it is less likely to happen.

Let us assume small and medium size enterprises have access and connectivity. They need a service with continuous access which must be priced on a flat rate basis. Let us take auctioneers as an example. Many auctioneers are connected to the Internet and send e-mails on a regular basis. They have real difficulty in calculating and measuring how much a connection to the Internet will cost on a monthly basis. Auctioneers need the financial certainty provided by what has become a necessary tool, namely flat rate charging. These rates should be competitive in comparison with other countries, particularly our prime competitor, the United Kingdom, and the United States. Our target should be to provide flat rate, continuous Internet access at a cost of between €30 and €40 per month.

I welcome the decision by the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, to direct the Commission for Communications Regulation to insist on the provision of continuous access and flat rate pricing, both of which are key requirements. Flat rate pricing, whether for analogue or DSL and broadband lines, is almost as important as continuous Internet access. When parents know how much Internet use will cost them, many more families and small businesses will routinely access and use the worldwide web because uncertainty about costs will no longer be a concern.

The Minister is well aware of the need for flat rates. Rumour has it that June is the deadline by which a retail service providing continuous, flat rate Internet access must be in operation. Is this the case? If so, is it on schedule? Does the Minister intend to drive this issue forward politically to make sure the infrastructure required to offer customers this service is in place by June?

This brings me to the wider question of infrastructure. There is an emerging view that it will be impossible in the short-term to link up every house and small business to a DSL or broadband line, unless we take current wireless technology much more seriously. While I welcome the wireless LAN project to which the Minister of State referred, it is a miserable contribution by Government to an area that warrants much greater priority. The wireless LAN project allocates €260,000 to pilot projects around the country. Of the 29 applicants for Government support to proceed with wireless pilot projects, six received funding amounting to €260,000. While I am open to correction if significantly more money is being invested in this area, the information available to me indicates the pilot projects being funded by the Government have been allocated a total of €260,000. I am glad to see the Minister of State shaking his head. I hope it signals my figure is wrong. If this is the case, it is a miserable allocation of funds.

Experience from regions similar to us around the world shows that the only way we will be able to provide households and small businesses in rural areas with broadband services is to do so in a wireless form. The Government needs to show real leadership in this context and invest significant moneys in research and development, promotion and incentives for private investment in wireless technologies. Let us get moving. If I hear fibre rings mentioned again, I will—

Mr. Broughan

We thought the Deputy was about to swear.

Mr. Coveney

I have given up swearing for Lent.

Mr. Broughan

This issue would make one swear.

Mr. Coveney

It would nearly make me swear. To be fair, fibre rings are a welcome development. However, in terms of mass and numbers, they come nowhere near providing what is needed. I welcome the fact that Cork city will be the first part of the country to have a fibre ring constructed around it. In reality, this will mean connecting industrial estates around the city to broadband. While this is welcome in that it will increase Cork's competitiveness and potential for attracting businesses from Dublin, we will need to consider other solutions in terms of linking up houses and small businesses in the suburbs and surrounding towns. Although I am sure the Government is receiving advice to this effect, it does not seem to realise how important it is.

We need more investment. Telecommunications infrastructure needs to be given the same priority as road and rail infrastructure. It is clear from the funds available to the telecommunications sector that it does not have anywhere near the same priority as the other two areas. The Minister of State and his senior Minister must fight in a more pro-active manner for funds for the sector.

While I am extremely critical of the Government's performance over the past five years, I accept that some progress has been made in the past five or six months. This is welcome as is what appears to be a new and more open approach towards the roll-out of the infrastructure necessary to ensure Ireland becomes more competitive in the next five years. We are currently ranked fifty-first in the world in this regard. Would a large multinational seeking investment opportunities to expand its business consider a country ranked No. 51 in the world or one of the countries in the top ten? In my view, companies seeking to enter competitive marketplaces to expand their business and develop software will draw a line through countries outside the top 20.

I welcome the progress being made in this area. Political direction and leadership are needed to drive it on and to ensure it continues. However, it must be brought about outside of Dublin. There is no point having in CityWest and the digital hub two highly competitive and resourced venues from an infrastructural point of view, when what we are trying to do in the national development plan and the national spatial strategy, as I understand it, is move investment out of Dublin. Infrastructure is a key area in which this can be done. We have graduates in Limerick, Cork, Galway and Waterford currently moving to Dublin to find jobs in the IT sector. We should make our towns and cities in the regions sufficiently competitive to be able to employ college graduates in this sector.

On the issue of graduates, it is extremely worrying that the points from last year indicate that the number of students choosing third level courses in IT and software has fallen dramatically. The Government needs to put in place the infrastructure necessary to ensure confidence in the future of the industry is sustained to the degree that students once again start choosing IT and software courses in third level institutions as their first and second choices.

Outside of Dublin, the Government must concentrate on access, flat rate pricing and continuous connection, and choice of service. These are the three key priorities. While I welcome the digital hub, we need to apply the principle behind it in other towns and cities to ensure the national development plan moves ahead as promised.

Mr. Broughan

I warmly welcome the Digital Hub Development Agency Bill, which will put the media village concept on a statutory basis. It is almost three years since the first major moves were taken to create a vibrant, clustered media digital centre which would be a showcase for enterprise and community involvement in high-tech and digital output. Along with many other achievements of this Government and many other legislative measures, it has come before the House three or four years too late.

Before speaking on the Bill it is necessary to reflect briefly on the sorry history of the development of this project and the fact that it was the subject of severe criticism from the Comptroller and Auditor General. The Government has belatedly tried to address this criticism by including a specific reference to the Comptroller and Auditor General in the legislation, which I welcome. It is now time to look to the future, however, and I will examine some of the key and exciting elements of the media village in the heart of the Liberties, clustered around Thomas Street, later in my contribution.

I particularly welcome the fact that this project is happening in an historic industrial area of my city. Although it is an area dominated by the great Guinness company for the past two and a half centuries, with the changes in manufacturing and the development of that company the huge district that supported it was left behind to some extent. I welcome the fact that the Government chose our historic Liberties to create this type of platform for Dublin as a whole and for the nation. I wish it well and hope it will live up to the hopes of many people in this House.

Over the past three years, however, there were a number of disturbing elements in the way the project was brought forward. At the outset there was a lack of discussion, particularly among the academic community at university level. The Dublin Institute of Technology and Trinity College are close by the development but I understand it was The Irish Times journalist, Karlin Lillington, who called the first discussion document on the media village as “dismayingly anorexic”, in other words, a document totally lacking in vision and enterprise. The row between members of the academic community in the original discussions on this proposal eventually spilled over onto the pages of The Wall Street Journal, which probably did not do our image much good.

My colleague, Deputy Coveney, made comparisons with other countries in his contribution but as welcome as the digital hub project is, it could be far more ambitious. If we compare what other countries are doing in their digital districts, our digital hub project looks dismayingly anorexic even today. To take two examples, the city of Kuala Lumpur and Seoul. In Seoul, the capital of South Korea, a vast media city of approximately 6.6 million square metres is being created, ironically around the area of the World Cup stadium in the Seongsan-dong district. It will have tetrabyte Internet connections into the central business district and all the research areas. Before the project was even launched, companies were wooed to the district and a determined construction and development project is under way which will continue until 2010. The basic idea behind the concept in Seoul is to have clustered digital media hub, software development, broadcasting, games and e-learning facilities. All the areas we want to encourage in the digital hub in the Liberties are being developed in Seoul but on a more vast scale, in other words, a major section of the city is a digital hub. I accept Deputy Coveney's very good point that a hub appears to infer that it would reach out to the whole national community and that a national programme in this area was what was called for.

In Kuala Lumpur in Malaysia, in a district 50 kilometres by 10 kilometres, a high-tech corridor and high speed Internet access is being created in a new urban district called Cyber Jawa. Approximately 200 companies are already established in the location, along with 10,000 new residents.

On the north western fringes of our city we are also developing a huge new urban district. In my own constituency, for example, we will develop a town approximately the size of Waterford over the next eight years. Planning permission for this development was received last week, although local residents want An Bord Pleanála to examine other aspects, but an extraordinary element of the planning permission is that the conditions did not indicate that every house should have pervasive, vast broadband facilities. We still do not have regulations from the Minister's Department or the Department of the Environment and Local Government which make it compulsory for every house – the development to which I refer is mostly apartments and duplexes – to have the option of an Internet connection. We have not done that yet we are building huge new urban districts but the comparison between what is happening abroad and our development is stark in that we appear to be lacking in ambition. A much more intensive debate should have taken place between academics and the IT business community and matters organised so that this concept would have been integrated into new urban regions.

Part of the problem over the past three yeas is that this development was the Taoiseach's minor pet project. His main project, which ended in disastrous failure, was the Abbottstown stadium plan which was directed mainly from his office. The Taoiseach appeared to put all his energies, and those of his key staff, into bringing about the ill-fated stadium rather than developing, perhaps historically, the more important digital hub. The digital hub was the minor project and the stadium was the major one and it is interesting that the same personalities were involved in both projects, which were directed specifically from the Taoiseach's Department. Mr. Paddy Teahon was deeply involved in managing both these ideas and it is extraordinary that we did not give sufficient attention to the planning, consultation and designing of the digital hub. Last autumn saw the extraordinary resignation of Mr. Teahon as the executive chairperson of Digital Media District Limited because a few months earlier he had joined the board of Insignia Richard Ellis Gunn, which had been contracted by the Office of Public Works in 2000 or 2001 to undertake consultancy work for the purchase of land in the Liberties. That was an extraordinary development in what was an historic, cutting-edge project for the country.

As I said, in autumn 2001 Mr. John Purcell, our eminent Comptroller and Auditor General, criticised the Government severely for continuing with the multi-million pound digital hub's management by a private company. It is rare that a new project like this would attract such severe criticism from the Comptroller and I welcome the provision that he and the Committee of Public Accounts will have an overseeing role regarding this Bill. I was proud to be a member of that committee in the 27th Dáil.

Deputy Coveney referred to the latest reports this morning about funding for the project. The Government seems to lack resolve, determination and vision in this area, as we understood corporate sponsorship was originally meant to provide 80% of the €130 million necessary for start-up costs. However, since the project began a number of corporate sponsors have pulled out such as RTE and 360 Networks, the Canadian company which was building a major broadband connection between Ireland, Europe and America. We now find that MediaLab Europe has approximately ten corporate sponsors, including Eircom, Ericsson and AIB, which give it approximately €2.5 million but that is well below the €10 million in annual funding which was expected from the corporate sector.

In addition, the digital hub suffered severely last autumn in the Estimates cutbacks, to which Deputy Coveney and I drew attention. The basic capital budget we were expecting was approximately €250 million but it turned out to be only €130 million, despite the fact that broadband connectivity had become much cheaper and that Dublin City Council took a lead in providing a fast physical broadband hub for this project.

Accordingly, the development of the project until now has left a good deal to be desired. The Taoiseach never gave this the kind of attention he gave to his number one project, the Abbottstown stadium. There could have been more consultation on this project, not least with the local community, and access should have been given to the funds promised from the start. The bottom line is that we could have been much more ambitious. If one looks at the recent Chamber of Commerce report's recommendations for Dublin as an e-capital and Ireland as an e-nation there is almost nothing in them any Member would disagree with. A fundamental commitment to major resources, in the amount of €4 billion to €5 billion, is needed, because this may be as important for our nation as our other resources. However, this is a commitment the Government seems unable to make; we are approaching the first anniversary of the Minister for Communications, Marine and Natural Resources in his post but he shows no determination to make such commitments.

Having said that, I welcome the achievements of the digital hub, the staff who are working in the district and the funds invested in trying to assemble the key buildings which are necessary. Dublin City Council, my local authority, is one of the sponsoring partners along with the Department of Communications, Marine and Natural Resources, Enterprise Ireland and the IDA. It is good to have those bodies represented on the board of the digital hub and I hope they remain there. However, there is no specific requirement that a community representative be a member of the board and the Minister should address this. Clearly those who live in the Liberties and the Thomas Street area will have a daily relationship with the six new companies the Minister has welcomed to the area.

I have the digital hub strategy statement and it thoughtfully sets out details for high-tech enterprise and education in the area while looking forward to the Liberties becoming a vibrant and innovative area of the capital. I welcome the statement and hope its plans are realised. We have some distinguished public servants working here under Philip Flynn, chief executive officer of the digital hub and William Burgess, its chairman. When this Bill comes into force hopefully they can get the project under way and make it a success.

The Minister referred to a number of areas which are doing well, such as the old Guinness print depot, which will be a flagship enterprise space, and its temporary accommodation at 157 Thomas St. However, the long-term plan, for 2004 to 2010, still seems vague. The Minister should clarify this.

I welcome the Liberties Learning Initiative. About a month ago, when the Bill was last due in the House, we saw some of the children involved in this initiative on the "Six O'Clock News". They are involved in digital education and we saw the work they did which can be stored, retrieved and integrated with other digital imagery. I agree with previous speakers that this should happen in every primary school. However, it is good the project is under way and Guinness's sponsorship of the initiative continues that company's relationship with the district. All the collaborative projects happening in the area are exciting and hopefully will be a template for education in the future.

I noticed recently that we are also beginning to see the first artistic digital events, such as the Darklight Digital Film Festival last September and the Starlight exhibition. These should create an interesting mix of artistic, enterprise and media approaches which we hope will be a hallmark of the area.

I echo many of Deputy Coveney's points. Since I took over this portfolio the Minister has been looking for the Labour Party's broadband programme. Going back to the time our Leader, Deputy Rabbitte, was Minister of State at the Department of Enterprise and Employment, we have had interesting policies in this area. We had a comprehensive programme, "Towards an Intelligent Society," which I intended to bring into the Minister and we also have a very good spatial strategy. Both of those strategies were produced long before the Government's versions. It is ironic that six years later the Government is belatedly trying to come to grips with these issues and is criticising the Opposition, which has not had an opportunity to do anything as it has not been in power for the past six years.

In the run up to the general election the Government produced the document Keeping Ireland at the Cutting Edge, stating that all public services should be available on-line by 2005 and that an information commission will be established. I find it strange, however, that Deputy Hanafin is e-Minister, an idea we copied from the British, while Deputy Dermot Ahern is the Minister for Communications, Marine and Natural Resources. One is in charge of software and one of hardware and regulation but it seems they never talk to each other.

I was astonished when the Minister of State told me yesterday that our Government has no e-procurement system. The Government undertakes massive projects but there is no electronic procurement system. I know of one company in Galway that constantly holds Internet auctions for its procurement and gets the keenest possible prices. Most of the ideas for flagship services for the citizen in New Connections are pie in the sky. If the Government does not lead by example, how will society follow?

The recommendations of the Dublin Chamber of Commerce report, Dublin as a World Class e-City, are striking. They present the Government with a huge challenge in terms of broadband infrastructure and creating real competition. The report puts us in the third division, with only moderate attributes of an e-city. We are in the same league as Dubai and Tel Aviv and way below Helsinki, Seoul and Singapore. Six years ago we were close to the cutting age but the Government has allowed us to fall to the third division.

European Commissioner Erkki Liikanen called our broadband access very poor and criticised the lack of real competition at the point of access for consumer. Deputy O'Flynn gave me a copy of the Global Information Technology Report Network Readiness Index and it placed us 21st, behind countries we would have thought we were at least as good as if not better. Much work remains for the Minister for Communications, Marine and Natural Resources and the Minister of State at the Department of the Taoiseach to do to make Ireland an e-nation.

The Minister, Deputy Dermot Ahern, and the Government have never faced up to the cost of investment in broadband. The Dublin Chamber of Commerce report gives a cost of €5 billion for a nationwide system but the Minister announces a different one of the 19 towns for the metropolitan area network programme every week.

Mr. Kehoe

Wexford is next.

Mr. Broughan

There are 67 towns still to come – the Minister will have to make an announcement every day.

Huge areas of the State, however, are still waiting for fast Internet access. A large proportion of the community will be excluded from the digital revolution. There is an onus on both Ministers to work hard at a programme of e-inclusion so the situation does not develop where huge tracts of the country are left out. I accept the points made about Cork, Limerick, Galway and rural areas, and welcome the comments about wireless LANs for remote areas, but we must ensure no proportion of the population is excluded.

We must put in place an e-strategy to speed up investment. I congratulate Dublin City Council which has been involved in installing broadband infrastructure in the Liberties. There are now 170 kilometres of fast network throughout the city. That network has been devolved into a separate operating division which will run at a profit.

Progress towards flat-rate access is still very slow. Will we see anything done about it before the Dáil breaks for the summer? I have had e-mail after e-mail complaining bitterly about the cost of access and the lack of fast access. I received one where the writer told me that, in his opinion, Internet access in Ireland is a bloody disgrace, that the Government has been promising since 1997 to do something but in a recent worldwide review of broadband we were second last. He pointed out that e-Government is supposed to be running by 2005 but the telecommunications provider is a private consortium and if it decides not to invest, there is nothing we can do. We sold off our main telecom provider, a point made by the Dublin Chamber of Commerce report, and that set us back in this area.

A great deal must be done. This is the first opportunity I have had to address the issue but I will come back to it again and again until the Government takes it seriously, particularly fast, cheap access.

My major concern about the Bill is that the local community in the Liberties and Thomas Street was not widely consulted before the project got under way. Thanks to the city council there is an integrated area plan and the city manager is a member of the current board but we should ensure that the community is consulted. We are getting used to district government with Leader programmes, such as Northside Partnership in my area, and it is critical the local community does not feel left out.

Section 3 states that the Minister can extend the area of the agency. It should be extended to the whole State but given that there are colleges and universities near the hub area this is important.

I welcome the provision in section 31 that the company will be accountable to the Committee of Public Accounts and the Comptroller and Auditor General. Given the sad history of disregard when the Taoiseach and the then Minister took their eyes of the ball, this should be the case. Section 33 also provides for an annual report to the Minister and I hope we will have an opportunity to debate it in this House.

Section 19 refers to the chief executive. I believe there should be a community representative as of right. I commend the Bill and will return to some of those issues on Committee Stage. I urge the Minister of State and the Minister to address the overall issue of digital technology with the urgency it requires.

Mr. Cuffe

I wish to share time with Deputies Connolly and Ó Snodaigh.

Acting Chairman (Ms Keaveney)

Is that agreed? Agreed.

Mr. Cuffe

Either we are serious about the digital economy or we are not. While there have been many launches and statements of commitment to the digital economy, we are lagging behind our European counterparts when it comes to pushing the boat out on this new and exciting development. Countries such as Croatia, Estonia, Poland and other eastern European countries are leaping ahead of us, both in terms of the provision of broadband lines and penetration per head of population. In this area, one certainly cannot stand still. Since the announcement of the digital hub, perhaps over two years ago, enough has not been done to push the boat out and make sure that Ireland grasps the fantastic opportunity of the new digital economy. My party is upset with regard to the cutback in funding available for the digital hub project over the past few years. We believe this has contributed, in part, to the fact that we have not moved as fast as we should have. Since standing still is not an option, it is important the Government prioritises development of the digital economy.

There are incredible possibilities open to us with the new economy. As an environmentalist, I emphasise that one can transmit substantial quantities of data from one location to another without using significant amounts of energy. This offers tremendous scope for economic and environmental savings to the economy. More importantly, it provides enormous potential for economic development, job creation and other opportunities. Having regard to the fact that the digital hub is located in one of the most disadvantaged areas in the entire country, it is imperative to ensure that the benefits accrue to the local population as well as the wider employment possibilities in Dublin.

We must become serious about the digital economy and push ahead with the roll-out of general broadband infrastructure in the Irish economy. I believe there is general agreement that unless Ireland has good broadband penetration with an up-to-date, accessible network, we will not be able to take advantage of the opportunities which can be delivered in the near future. It is also important that the system is affordable in order that both large companies and individuals can take advantage of it and thereby ensure that we do not fall behind, as I believe is now happening.

I must pose the question as to how the digital hub will attract business. I am concerned that, to date, we have not seen a huge flow of companies moving into the digital hub, although I accept that it is early days yet. Taking the Temple Bar development as a model of inner city development, with which those in charge of the digital hub would be very familiar, that model was predicated on success in attracting small businesses and individuals into the area in the first instance. It subsequently developed into a much wider success, economically and in other respects. My concern in relation to the digital hub is that, so far, we have only seen a few companies taking up space which has become available within the heart of the Liberties area.

Much of the expenditure to date has gone into land acquisition and telling the world about the digital hub, but how many companies have actually set up operations in the Liberties? I suggest that a greater effort is needed to attract more companies in the first instance. Looking at the details of expenditure on the project, as outlined in the explanatory memorandum to the Bill, the vast bulk of that capital has gone into land acquisition. I worry about such a push towards buying land before first developing the essential embryonic businesses. I believe the balance in that regard may not be quite right. I ask the Minister to provide some clarification on the costs involved and the issue of value for money in relation to land acquisition, on which tens of millions of euro have been spent. While I appreciate that land does not come cheap in Dublin's inner city, there should be a value for money audit on that aspect.

If I may change a familiar phrase slightly, there is no such thing as a free launch and there have been many launches of the digital hub over the past few years by various Ministers, including the Minister of State at the Department of Communications, Marine and Natural Resources. However, I wonder about the substance behind that activity. Of course, we need to market the product and tell the world about it but behind the rather ethereal brochures, are we delivering on the substance? I am not yet convinced that we are attracting substantial business into the area.

We should also develop outward links. There are many third level institutions in Dublin, including the Dublin Institute of Technology, the NCAD, DCU, UCD and TCD. I am not convinced that either the digital hub project or Media Lab Europe has made sufficient connections to those third level institutions. If we are serious about developing the digital economy, we should be there as a powerhouse tied into each of those institutions. That aspect should be moved forward. While there are students working actively for Media Lab Europe, many of them pursuing doctorates or other higher degrees, much stronger links should be developed at undergraduate level and, indeed, with second level schools in the area. The link with third level institutions is particularly important. I believe there is a knowledge deficit, paradoxical though it may appear, between other third level institutions and the digital hub

I welcome the mixed use community aspect of the digital hub and the 25% provision in relation to housing in the area. I assume much of the housing in question will be used to accommodate students pursuing studies within the digital area. I would like to see equal access within many of the third level institutions in the city, thereby making a wider population aware of the benefits of the digital economy and projecting the message that the digital economy is here to stay and that links with existing third level institutions are essential.

I reiterate my point that a high quality broadband infrastructure is necessary and my concern that we are falling behind. I ask the Minister to clarify what is on the table in terms of pushing the boat out in that regard. I note what I can best describe as a paucity of information from the e-Minister, Deputy Hanafin, Minister of State at the Department of the Taoiseach. I have yet to see pronouncements from her on the digital economy and I look forward to a balance being re-established in terms of a partnership of e-Ministers coming together to show how Ireland will develop the electronic area. Thus far, the Green Party has not been convinced that there is a substantial Government commitment to e-government and e-commerce. I refer to a relevant anecdote – a colleague downloaded a driving licence application form and brought a hard copy for signature at a Garda station, where he was informed by the garda on duty that such a copy of the form was not acceptable. We must change that mind set. Much of the responsibility for doing that falls on the Minister's shoulders. We must make sure at every level of government that people are confident and happy to accept the electronic format of application forms so that they do not look for a form other than one downloaded off the Internet. The electronic form should have equal status, if not a greater status, than a hard copy.

A fair amount has been done to make the links into the local community within the Liberties. We must do much more to make sure that young children are made aware of the possibilities. Last summer I was delighted to see the project involving skateboarders and cameras mounted on skateboards. It was a fantastic project, making young children aware of what is on offer there. However, we must achieve greater awareness and greater penetration of the schools and homes within the area, whether in Oliver Bond, School Street or Watling Street, which literally adjoins the digital hub. That will not happen by simply making available computers. It will happen by changing the mind set by having dedicated personnel who are talking to people in schools and in their homes about the potential job and leisure opportunities for people within the area. I hope the Minister will increase that commitment and put an onus on those working in the digital hub to make a strong and active connection with the local community. No doubt he can do that but I am looking forward to seeing more evidence of that commitment.

Aengus Ó Snodaigh

I welcome the fact that the Government has taken an interest, which has been long-awaited, in the development of this area of Dublin. It is one of the oldest areas of Dublin with a long history and it has been neglected for years. Therefore, I welcome this Bill and I welcome anything which will help revitalise that area of Dublin. Anybody who has travelled down Thomas Street, in particular, or James's Street will be familiar with the desolation and dreariness of the derelict buildings there for quite a number of years. This Bill and the digital hub will, I hope, regenerate that area, create a vibrant area once again and maybe address some of the problems there.

The area has the highest drug use in Europe for males between 17 and 25. The digital hub is not being set up to address that, but perhaps if there is a regeneration of the area some of the depression and the reasons people end up involved in heroin abuse, and now of late, cocaine and crack abuse, will be addressed and there will be hope for the people. The only way of giving hope to these people, and especially the young people, is if more is done to address the educational disadvantage. While many of them attend primary school and perhaps some attend secondary school for a while, the incentives do not seem to be in place to ensure that they remain in school.

While I have commented locally on the digital hub in the past, I welcome the steps that have been taken to try to computerise the schools so that there is hope and there are facilities for the school children in the area to get used to the technology of the future and to have access to it so that they can learn skills which will enable them rise to the top level. One of my worries, which has been expressed by others in the community, is that because the area has had a low educational qualification level, there is a danger in the future that the people employed in the digital hub and associated industries will be those who will move into the new houses and apartments planned rather than the indigenous people of the Liberties. There is a definite need for a faster roll-out of computerisation of the locality's schools, especially the secondary schools, but it is also important that it starts from the bottom up. Therefore the Department of Education and Science needs to play a more vibrant role than it has to date. If that is done, then there will be a community who will not be dependent on jobs as porters, security staff or cleaners, as was the case in many of the industries in the area to date.

What is proposed for the area will involve highly skilled workers. The only way of changing the ethos of the area is to promote education for all. In this area are families who have never experienced third level education. Most people have limited training and very few have done the leaving certificate. This is about changing that atmosphere in the homes so that the children can be encouraged to continue in school.

The Minister has accepted and recognised the important role of the community as stake holders However, the danger is that people from the locality will be priced out of the local houses by this huge investment and the building of housing to facilitate people working in the digital hub. Already the price of houses in this area is well beyond most of the local people and most depend on Dublin City Council for housing. In fairness, Dublin City Council has done a tremendous job in the past ten years in refurbishing and regenerating most of the complexes in and around the digital hub, and I hope that will also serve the hub well.

We need to ensure that the project progresses quite quickly so that the dereliction and other issues can be addressed. The property has been bought up, boarded up and under utilised, and therefore the quicker the project progresses, the better. The plans for this concept began to be formulated as far back as 1996. Initially the community were not consulted, and even the City Council was not consulted because it had an integrated area plan being prepared and all of a sudden this plan was foisted on it. Both the community and the City Council have embraced the plan. What they want is that this would be rolled-out as quickly as possible so that we are not left with more years looking at derelict buildings.

One of my concerns is how this digital park or digital hub will be successful when one considers the many other digital parks which have been developed throughout the world? What will make this one different? How will we succeed and how will we guarantee that in ten or 15 years the Minister will not come back to the House to say that there is a great deal of property in this area which needs to be disposed of because the project has not been successful? I would have liked to have seen the tax incentives continued. It is a pity that the European Union forced us to develop the site without tax designation. If there were such tax incentives, there would have been a much accelerated take-up of the opportunities which this area and this plan will offer for the future. It is the future, not only of the area but of Ireland. If this investment – it should be looked on as investment, not expenditure – works in this old area of Dublin, we can go beyond it. Research and development in new technologies will be vital for the future wealth of the country and also for future economic growth. I would warmly welcome such a development.

One of the areas just mentioned by my colleague was Watling Street, which is beside a city council flats complex called Emmet Buildings. Next to Emmet Buildings will be the first project to come on stream in the digital hub, the print works. The community there has seen no benefits to the digital hub, nor can they foresee any. I had a meeting with the residents' association and members of the city council last week and none of them seemed to be aware of any benefits or of what was to happen right next door to them, where a new walkway and so on are being built.

The current developments are encouraging, but it should be happening more quickly. It is important that links are made with the third level colleges in the area, including Griffith College, Trinity College and the NCAD. The colleges need to form part of the project so that it can be successful. The innovation and imagination of not only the local people but also the people of Ireland are needed to help advance the companies and ideas coming from the digital hub.

Mr. Connolly

I welcome the opportunity of speaking on this Bill, which aims to establish an organisation, Digital Media Development Limited, which will self-destruct when the digital media hub in Dublin's Liberties and Coombe area becomes a statutory agency. The concept of the digital hub has been described as a virtual Valhalla and a Silicon Valley-type digital nirvana. A variety of new Irish and international digital media companies, research and development programmes and educational initiatives will be clustered together in the Liberties. There will be a vast amount of work involved in defining the functions and role of the agency, developing the digital hub, formulating strategies to promote it as a location for digital enterprises and other activities and devising and financing a development plan as well as consulting local interests regarding its implementation.

After a considerable amount of foot-dragging and controversy and five years after the concept was conceived, plans to develop the digital hub to reality are finally under way. This area will play host to everyone from web developers and software firms to animators and games developers, musicians and artists and the architects of the future world of the Internet, communications and entertainment. One of the nerve centres of the digital hub will be the Massachusetts Institute of Technology's MediaLab Europe, based in the Guinness Hop Store. More than 7,000 workers and 10,000 residents will be involved. Close to €200 million has been expended on property acquisition in Thomas Street and the general Liberties area by the Office of Public Works and public private partnerships will be required to assist in the area's revitalisation, which will entail not only the physical enhancement of the area but also the matter of job creation. Some of the brightest and best brains from within and outside the country will be attracted to the development of Dublin's own mirror image of Silicon Valley.

There is unlimited scope for interactive research and development with third level colleges in Dublin. A wide range of digital media, animation, television and film making and computer technology courses will be available in the academy to be set up as part of the complex. Several media institutions will be able to combine in the provision of a wide range of undergraduate digital media courses in well equipped and modern lecture theatres. I understand that a ten-year agreement has been instituted with MIT in relation to MediaLab Europe at a cost of €8.5 million. It is vital that the Minister provide a cost-benefit analysis, given the level of Government financing for this project. The anticipated return from the project over the next five years is in the order of €3.8 billion, with anticipated exports of €2.7 billion and a workforce of 30,000 people by 2012.

This country stands on the threshold of a significant expansion of broadband technology. The development of the digital hub is most timely, as its establishment will be buttressed by the greatest advance in communications history since the invention of the telephone. Since the introduction of broadband in the USA several years ago, Ireland has trailed behind most other OECD countries in its development, which is vital to our country's economic growth and prosperity. A country's future prosperity depends on the development of a competitive market for broadband services and on advancing our national communications infrastructure to the greatest extent. In the recently announced national spatial strategy, the development of broadband technology and infrastructure forms an essential communications component of the various regional hub towns and gateways.

The Liberties – Coombe area has numerous social, economic and employment needs, even though its rich cultural heritage is legendary. With the notable exception of the Liberties Community College, which provides a wide range of courses, the area has a distinct lack of access to digital information and communications technology and skills. The concept of a digital media hub is revolutionary and marrying this to the concept of public private partnerships in the refurbishment of the Thomas Street properties will provide an added impetus to the entire project. To cluster the digital media industry in a single location in Dublin is an excellent idea but it will be vital to ensure that Dublin's digital hub will be integrated with Ireland's regions in a type of national grid to create a virtual marketplace. The hub will completely transform the entire Liberties area, just as the IFSC has changed the face of Dublin's docklands. The next generation of technology talent will be ideally placed to benefit from this landmark development.

The digital hub, although it will rely on a variety of technologies, will not be about technology but about people. It represents a new type of social institution that will provide ways for people with common interests to meet and interact. It also represents an important new economic force that will open new avenues of interaction between companies and their customers. I am convinced that the digital hub will become a major element in the development of the new world of electronic commerce. It will inspire a genuine, passionate sense of belonging among its participants. Strong bonds of friendship can be developed and sustained on-line and the successful digital hub will be likely to endure for many years.

Building and sustaining a digital hub, whether in the physical world or in cyberspace, is not a simple matter. It will take time to grow and will be slow to change. Perhaps no single factor is more critical to the long-term success of the digital hub than trust among its participants and customers. Anyone wishing to benefit from the opportunities offered by a digital hub must accept the responsibility of being a good citizen of the digital hub community. The regard for success is the prospect of building relationships with customers that may well be stronger and more valuable than those created by any other marketing strategy. This Bill is to be welcomed and its enactment should not be placed on the long finger but expedited.

Mr. O'Flynn

I am pleased to speak on the Bill which provides for the establishment of Digital Media Development Limited, the body set up to oversee the development of the digital hub on a statutory basis. I commend the Minister for bringing the Bill before the House.

The Bill defines the functions of the agency with regard to the development of the digital hub and provides the necessary corporate and regulatory structures for a State body. The establishment of Digital Media Development Limited as a State agency will be an important component in the strategy to develop the digital hub as a vibrant centre for digital content enterprises. The digital hub is a development project cluster of Irish and international new media companies, research and development and educational initiatives in the Liberties-Coombe area of Dublin. The digital hub is part of the drive to move our IT sector up the value chain and make Ireland an international centre for high-speed research and cutting-edge digital industry, while also addressing the digital divide at a local level.

The initiatives include the building of a high-speed broadband infrastructure in the digital hub area to meet the needs of digital media enterprises for state of the art telecommunications facilities, the marketing of the digital hub to digital content enterprises and the Liberties learning initiative for projects, developed by the digital hub, in support of recommendations made by the Liberties-Coombe integrated area plan advisory group. Enterprise Ireland and the IDA are key partners in the digital hub as part of their strategy to target the growth of the digital media sector in Ireland. Dublin City Council is also a key partner in the context of its integrated area plan for the delivery of urban regeneration to the Liberties-Coombe area.

Five years ago, Paul Kavanagh, one of the original architects of the IFSC development scheme, came up with the concept of a digital media hub for Dublin – a development in the heart of the capital which would play host to a Silicon Valley-type digital area and a hub which would host the meeting of minds and money for Ireland's experts and some of the world's luminaries in this field. I am delighted that, some five years later, plans to take the digital hub from concept to reality are under way. This area will be a home for everyone from web developers and software firms, animators and games developers and musicians to artists – the architects of the future world of the Internet, telecommunications and entertainment. Upon completion, the digital hub is envisaged to play host to more than 7,000 workers and 10,000 residents on four land banks around the Thomas Street area of the Liberties including the MIT Media Lab Europe which is based in the Guinness Hops Store.

The Joint Committee on Communications, Marine and Natural Resources recently visited the MIT Media Lab centre and saw at first hand the wonderful concepts, design work and innovative research that is being done in the area of media. In the first phase of the development, the project will see the creation of a 2.5 kilometre high-speed fibre optic ring or metropolitan area network – MAN – and the refurbishment of the 1930s landmark print works building as well as the launch of a Liberties learning initiative, sponsored by Guinness. The project will also prepare for the installation of the first tenants, under the auspices of Enterprise Ireland, in temporary accommodation in this area. It is understood that some 60 companies have already expressed an interest in locating at the hub.

Importantly, it demonstrates recognition of the sector at State level and recognises that, like the software and call centre sectors that have thrived here in the past decade, the industry needs a degree of support to gel as a sector in its own right. Being able to locate in an area with the support of companies that compliment each other's activities will be beneficial to the companies which locate there. The nature of digital technology and broadband networks means that distance becomes irrelevant when one is doing business. There are islands of digital activity all over Ireland from the Ennis information age town to enterprise centres such as Innovation Works in Tralee, where some highly advanced digital media work is being carried out, and in Cork, we have the National Software Centre. We need to ensure that the regions are integrated with the digital hub to plan to create a seamless virtual marketplace.

I was also pleased to learn that ESB Telecom switched on the first part of its €50 million national broadband fibre network in a move that will lead to faster Internet services and cheaper prices for telecoms in the regions. The network will enable the ESB division to become a carrier's carrier – a firm that sells wholesale telecoms and Internet capacity from its network to other telecoms firms. Its first customers are likely to be companies such as Worldcom, ESAT, BT and a range of wireless firms that want to provide telecoms services outside Dublin.

The ESB also plans to use a State-wide broadband national backbone network to gain a foothold in the market for third generation, 3G, mobile telephone services. Third generation mobile technology will enable firms to provide a range of video and Internet services to hand-held devices. ESB Telecom switched on the southern loop of its network which runs through Dublin, Limerick, Cork and Waterford. The extra competition that its network will offer to these locations should reduce the cost of national broadband capacity. The construction of the ESB fibre network will help attract inward investment. ESB Telecom has received €16 million in grant aid to help fund the national network from the Government and the EU under a special grant programme designed to assist the uptake of e-commerce.

The national network, which runs in a figure of eight between Dublin, Cork, Galway, Dundalk, Waterford and Buncrana, should be completed by the autumn. However, there is a great deal of fibre in the ground and there will be more, but I wonder how much of it will be lit up. Are we running fibre alongside unlit fibre? I would like the Department of Communications, Marine and Natural Resources to provide a map of all the fibre in the ground. The Committee on Communications, Marine and Natural Resources is making its own inquiries into those matters and the Minister has been advised in that connection.

It is important that ESB Telecom offers access to service providers at affordable prices, otherwise the network could become a field of dreams – similar to what happened in Iowa in the US, where the state government rolled-out a fibre optic backbone but got few customers because it was too expensive to use. The key to the success of the ESB project is to secure an anchor customer who will guarantee capacity use. Such a customer should be the Government, Departments, local authorities and health bodies.

I urge the ESB to tender for managing the national area networks. The MANs, which are being rolled out by local authorities with the assistance of the Department will have to be managed in a network. There is a question as to whether the LANs – when they come on stream – will be cable or wireless-based. There is no size that fits all and I believe the LANs will be a wireless system which does not require a line of sight.

I recently undertook a fact finding mission with the Joint Committee on Communications, Marine and Natural Resources to Grant County public utility district in Washington State where they manage the state network on a 24 hour a day, seven day basis. Who better than the ESB to manage such a network when it is already managing the national grid and has decades of experience in telecoms? When the digital hub is up an running, it will show everybody the way forward. The committee delegation, which also visited Silicon Valley, included Senator Finucane and Deputy O'Donovan, the Clerk to the committee, Mr. Ronan Lenihan and Mr. Kieran Duffy from the Department and it was a worthwhile fact-finding trip.

The Grant County experience mirrors what the digital hub will provide. In Grant County the public utility district is installing a full fibre optic broadband network available to every home in the county, just like the digital hub will deliver in the heart of the capital. The Grant County network was impressive. A simple test with a laptop computer in which an eight megabyte file, residing on a server in Dublin, was accessed in Grant County and opened in one second while, in San Francisco, using a DSL broadband Internet connection rather than fibre optic, the same file took minutes to open. For any company to survive in the competitive environment that globalisation brings, the ability to be more productive by accessing information 120 times faster, or greater, is a must for success and for Ireland this will be delivered by projects like the digital hub.

Foreign Policy, the magazine of global politics, economics and ideas, shows in its 2003 globalisation index which measures a country's global links from foreign direct investment to international travel, telephone traffic and Internet servers, that for the past two years Singapore and Ireland have topped the ranking of political, economic and technical integration in 62 countries. Ireland was also among the world's largest beneficiaries of the global boom in high-tech and information technologies. Its success in attracting investments in earlier years gave it a first mover advantage when these industries began to experience global growth. By 2000, technology giants such as Microsoft, Intel, Gateway and Global Crossing were calling the “Silicon Isle” their European home. These high-tech investments help explain Ireland's steadily growing foreign direct investment inflows, which rose from an average of close to $3 billion per year throughout the mid-1990s to $20.5 billion in 2000, or nearly $5,500 per resident. This is more than three times greater than the $1,653 investment per resident in Finland.

However, our first mover status is not secure as the index shows that while Ireland was in first place in both economic and personal ranking, it was only 17th in the technology ranking. This 17th place is due to our ranking of 24th for Internet users, 16th in terms of Internet hosts and ninth in terms of secure Internet servers. We need full broadband access at competitive rates and the USA illustrates this can be achieved; Grant County offers a 24 hour, fibre to fibre service for a fixed fee of $22 per month.

Global Information Technology Report 2002-2003 published a report last week that shows Ireland in 21st place in the network readiness index. I believe we can easily rise to being in the top ten within two years if we continue to invest in the rollout of the infrastructure that will lead to increased connectivity and accessibility at affordable prices. I commend the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, for his initiative and driving forward this programme. I urge the Minister for Finance to make moneys available to drive these programmes forward to prevent us from falling behind.

A result of our fact finding mission was that if Ireland is to consolidate and maintain its first place in terms of globalisation, technology ranking must be addressed and the concept of modem dial-up Internet access charged by the second has no place in the Ireland Incorporated strategy for the future. Ireland is set to continue to gain from and lead the ICT revolution with developments such as the digital hub. I am reminded of the expression that one only gets one chance to make a first impression – this happens to us all on different occasions. Projects such as the digital hub will show us the way to the future and if such projects are not grasped then Ireland runs the very serious risk of condemning our economy to stagnation at best. I am reassured when I see legislation such as the Digital Hub Bill as I know the Government is planning for the future and investing in order to secure the growth of our economy for our future and that of our children.

The Joint Committee on Communication, Marine and Natural Resources has established a sub-committee on information communications technology. This sub-committee will address the area of broadband infrastructure, connectivity and pricing. The work programme has been agreed and it will commence next Tuesday with a presentation by the Minister on the provision of a national high-speed broadband infrastructure, including cost to users. The Minister of State at the Department of the Taoiseach, Deputy Hanafin, will make a presentation on the delivery of Government business and commerce functions through the national high-speed broadband infrastructure. We expect to lay our first report on this sector before the House within three months.

I attended a TeleCities conference in Dublin Castle yesterday. Much emphasis was put on the importance of digital hubs for cities. I was delighted to hear a Dutch speaker praising the Government and Ireland for its success in the rollout of the digital hub and technology. At several meetings on the margins of the conference I was pleased to learn the Secretary General of the Department, Brendan Tuohy, and his officials working in this area are held in high esteem. We do not often praise officials for the work they do but it is important to do so in this case.

The sub-committee will seek presentations from the ESB, telecom operators, the IDA and Enterprise Ireland, the communications regulator, Cork City Council and Dublin City Council. I mention Cork because it is the first city to rollout a broadband contract. Work on this started a few weeks ago and it will take ten months to construct. The e-democracy unit of the Houses of the Oireachtas, educational and health interests, Microsoft and related main players in the IT industry and MediaLabs Europe Limited will also be invited to make presentations. We may also have a number of site visits to examine the ESB fibre backbone. Users are the most important group and they will also be invited to meet the sub-committee. The seven Members on the sub-committee are deeply committed to the area of ICT. I hope this report will assist the Government when it is laid before the House.

The former Minister for Public Enterprise, Senator Mary O'Rourke, introduced a computer-aided information technology programme. This programme has stopped since it was moved to another Department. I ask the Government to seriously consider the reconstitution and reintroduction of this programme. It is very important that all citizens be given an opportunity to learn about the information and knowledge society. It is important that everyone is given the opportunity to use the Internet and computers. If one takes South Korea as an example, 12 million people were trained in the use of computers and the Internet. This has resulted in South Korea being ranked as one of the top five countries globally in terms of rollout of technology and the use of the information society.

The information society is somewhat like the rollout of the rural electrification scheme in the 1920s. The future for Ireland does not lie in industrial development but in the knowledge society and access to information. Ireland will accrue many benefits in the future if it ensures people at all levels are trained in accessing this knowledge and in its use.

I was going to tell the House about what we have done in Cork but my time has run out.

Mr. Kehoe

I wish to share my time with Deputy Naughten.

Acting Chairman

Is that agreed? Agreed.

Mr. Kehoe

I welcome the Bill. The only gripe I have with it is that it is based in the Dublin area. It is a pity it is not nationwide.

There has been significant spending in this area over the past number of years, including on MediaLab Europe, the result of an arrangement with the Massachusetts Institute of Technology. Now we have the digital hub. When a significant amount of money is spent on such projects, it is important that there is a legislative basis for it. It is taxpayers' money. There should at least be a reporting mechanism in place. However, the mechanism regarding the operation of DMDL and MediaLab Europe has, to date, been most unsatisfactory.

The main function of this body is to promote and facilitate the development of the digital hub as a location for digital enterprises and related activities. To be successful in its strategy the Government must begin with radical decentralisation of Government administration services and the provision of quality state of the art infrastructure for both physical and electronic communication needs. Enterprise Ireland needs a strategic plan that sets out ambitious targets to be achieved.

The identified sectors of informatics, digital media, e-business and health and sciences are a public private partnership project. There is major investment, in the region of €130 million, by private sector developments to meet the criteria laid down in the strategy for the digital hub. The aim is to increase sales to almost €4 billion in the next five years, increase exports to almost €3 billion and increase employment to an ambitious 29,000 people over the next decade. I hope the current wide reaching cutbacks by the Government will not destroy this ambitious plan. According to today's newspapers there are already cutbacks and financial difficulties in the digital hub.

Digital is ideally suited to a well educated Irish workforce and if it is given support, it will be effective and productive for the country. However, there will be risks involved with such ambitious targets at a time of economic gloom. It is imperative to develop resources and infrastructure of a new nature within the digital hub development agency and through the functions conferred on it in this Bill. The opportunity exists to do something wonderfully new, different and well suited to our technology business and the well educated workforce. It is important that all agencies and bodies work closely with the people who manage the digital hub development to market the centres to a wide variety of companies involved in all facets of the development.

My party has detailed a number of key objectives in its technology policy. Primary among these is the extension of broadband. It should be rolled out across the country. It is the future for bringing business to this country. We must possess and advance national communications infrastructure if we are to secure our future prosperity. The development of a competitive market for broadband services is crucial to sustaining a high level of growth in incomes, employment and overall economic growth for the coming years. Ireland is currently lagging behind, at 26th of the 28 countries in the OECD, in the provision of broadband services. It is improving but it must improve further. My party wishes to see the potential for broadband expanded throughout the country. It is an important component of our spatial plan.

The world we live in today has changed for the better. At one time writing was the main means of communicating but now we depend on e-mail, text messaging and computers. If Ireland is to take a leadership position in commerce it will require more than attracting a few key foreign firms to invest here. It is a matter of giving those firms the communications infrastructure that allows them to conduct e-business from here. The widespread availability of broadband will encourage more companies to locate in Ireland and broaden our economy.

Although these facilities are vital, taking a leadership position in this new world means, above all, making the information age a reality for everyone in Ireland. If the country is to gain the full benefits of the information age, we must bring new technology to everyone. We are at the bottom of the table when it comes to technology. That is the reality. Despite all the promises from the Government, Ireland is at the back when it needs to be at the front.

The passing of this Bill will be only a small step in the right direction and much more work must be done. I hope the digital hub will place us in the prime position of being one of the most attractive destinations for technological companies. I hope the Bill will be enacted in the not too distant future. I cannot over stress the importance of the roll out of broadband. It is the element that will bring Ireland to the fore in attracting industry. The only worry I have about this Bill is that it is based on Dublin. I hope in the future it will be available throughout the country and give people the opportunity to see its importance. Every household in the Coombe area will see the benefits of the Bill. I commend the Bill and hope it will lead to a brighter future for Ireland.

Mr. Naughten

Deputy Kehoe spoke about his hopes for the development of information and broadband technology in Ireland. Everybody who is involved in the technology sector is living in hope at present. The big problem is that, to date, the Government does not appear to have any great vision as to how it will ensure that there will be broadband accessibility throughout the country so we can capitalise on the Bill before the House today.

This Bill is welcome and long awaited legislation. The digital hub has been planned and debated for the past five years. It is a positive development. However, if we are to capitalise on what will happen in the digital hub and ensure that it expands and develops so it will attract investment to other parts of Dublin city and the country, our network must be put in place. Deputy Kehoe hit the nail on the head. That is only a hope.

Minister of State at the Department of Enterprise, Trade and Employment (Mr. M. Ahern)

The broadband is being rolled out. Check the facts.

Mr. Naughten

There is no easily accessible looped cable network in this country. The only one available is in the private ownership of Eircom. We made a huge mistake when we privatised the Eircom network a few years ago. It was the biggest single mistake made by the State. Both the Government and the Opposition welcomed the privatisation of Eircom but, because of privatisation, there is no easily accessible network available.

Deputy O'Flynn mentioned the ESB. The ESB is rolling out a network but it is a partial network. Bord Gáis is also rolling out a partial network. The only network that has not yet been mentioned is the Irish Rail network which, again, is partially rolled out. The western corridor is being put in place to bring broadband from Donegal through to the south west of the country. However, there is no connectivity between the four networks. Those networks must be linked if we are to have looped accessibility to broadband. There is no point bringing a broadband cable into a town unless it is looped. The local loop networks that are going ahead at present are a positive and welcome development but without looped accessibility it is pointless.

That is a major difficulty but the Government has yet to realise it. It is within the Government's capability to provide a backbone network relatively quickly that would generate income for the State through the semi-State companies that currently own the cable facilities. That initiative has not been taken, however, so the matter has not progressed. If the initiative was seized operators could be encouraged to provide broadband Internet access to companies and individuals, thus assuring competition which is the key element. We have yet to see the competition element come to fruition and without it we will not attract employers who wish to diversify to the regions.

Mr. Eoin Ryan

Is the Deputy in favour of competition in the transport sector?

Mr. M. Ahern

He is trying to take on both sides.

Mr. Naughten

Competition among providers of broadband access is the key issue for operators in this sector, but that is not available at the moment. We are still awaiting a decision from the communications regulator on local loop networks which will be fundamentally important to the development and provision of broadband access for the regions, especially with regard to small businesses. It is crucial to provide such access via this legislation which should ensure broadband access throughout the country. It is a key element for the future well-being of the economy.

Jobs have been created on the basis of our skills base but we are now becoming extremely uncompetitive and because of that, low skilled jobs are moving elsewhere. Every week we see closures and consequent job losses. That will continue to happen unless, as Deputy O'Flynn said, we can invest in information technology and the knowledge-based economy. That is not happening, however.

Mr. M. Ahern

Jobs are being created.

Mr. Naughten

Traffic congestion in Dublin is an issue in which the Minister of State's colleagues, Deputies Ardagh and Eoin Ryan, are extremely interested. That problem cannot be addressed, however, unless infrastructure is put in place to bring employment to the regions. If that was done, people would be able to live and work outside Dublin rather than have to commute long distances to and from the capital. A sufficient broadband capability is required to achieve such regionalisation but it is not there currently, even though it would be the key to decentralisation. Ministers should stop dragging their feet on the issue of decentralising Departments and agencies. It has not happened due to internal Cabinet feuding about which Departments and State agencies should be located where. Decentralisation would have provided the impetus for rolling out a broadband programme for which there is a demand in provincial towns and elsewhere.

The Government is not using the new technology that is available. For example, the Minister of State, Deputy Hanafin, is the Minister with responsibility for e-government and the Central Statistics Office comes within her remit. Up to now, however, the CSO has not figured out how to maximise the use of new technology, as the Revenue Commissioners have done. Such technology can reduce the level of red tape encountered by small businesses in their dealings with State bodies. The Minister of State has the authority to ensure the delivery of e-government, yet she cannot even work it out in her own Department. It must come about swiftly.

Other speakers have mentioned the need for broadband access but it will not be provided to every single home without wireless technology which requires a broadband backbone. In that way, broadband technology can be delivered to small villages but the infrastructure has not been put in place because we have not made the necessary investment. One company wanted to develop wireless technology on the western seaboard but it went into liquidation due to the downturn in the IT sector. No such work is taking place at present, but wireless technology is required because fibre-optic cable alone cannot be used to bring broadband access to all rural areas.

We must examine the international benchmarks that are in place. For example, the Malaysian capital, Kuala Lumpur, provides the example for what is currently taking place in the IT sector. The prime example for broadband accessibility is South Korea. These developments are being prioritised in south-east Asia where such investments are scheduled for the long term. In this manner, Asian countries will be able to attract fresh investment to develop the information society.

Not only does the Government here have difficulty in explaining what is needed in this regard, but the public has also ignored the issue. That is because the public naively believes it already has high-speed Internet access through ISDN. It was a good marketing ploy by Eircom to provide so-called high-speed access through ISDN lines but that is not the same as providing broadband access. Fibre-optic cable installations are needed with investment in DSL systems, but this is not feasible without local loop bundling, and no such action has been taken on this matter. We also need to develop satellite technology to cover peripheral areas of the country. The Government has been far too slow in dealing with this, as has the communications regulator.

I hope the Bill will herald some action to provide the accessibility that is needed for competition which, in turn, will ensure widespread Internet access.

Earlier in the debate, Deputy O'Flynn mentioned that Ireland is second only to Singapore for global access, and no one would dispute that. In fairness, the Government must be given credit for this. While Ireland can boast the top global access system, however, the problem is that difficulties have arisen along the western seaboard where investment must be made to upgrade broadband access. The Government must give a commitment to do so.

On a previous occasion, Eircom had to return funding to the then Department of Public Enterprise because it was not financially viable to proceed with rolling out a fibre-optic cable network. It can be done, however, by bringing the semi-State sector, including the ESB, Bord Gáis and Iarnród Éireann, together with the local loop networks to develop the system on a public private partnership basis. Thereby, companies that made a commitment after foreseeing the demand for such services would see a return on their investments. Unless we can supply the backbone to provide the necessary levels of competition, this legislation will be valueless and further debate on the matter in the House will be pointless.

While the Minister has to be commended for taking steps to introduce flat-rate Internet access, it comes back to the provision of competition.

An Leas-Cheann Comhairle

The Deputy should conclude.

Mr. Naughten

In his reply, the Minister of State will no doubt say that fibre-optic cable networks are already in place, but the problem is the companies that want to provide those services are not getting access to them at a reasonable cost. Until such accessibility and that type of network are provided throughout the country, this and all other debates on this issue are pointless.

Mr. Ardagh

I thank Deputy Eoin Ryan for facilitating me by sharing his time with me. I trust that is agreeable to the House?

An Leas-Cheann Comhairle

That is agreed.

Mr. Ardagh

I want to declare a number of interests. I have an interest in the hub area because it is in the Dublin South Central constituency which Deputy Upton and I share and members of my family have an interest in a company that provides broadband wireless access services.

The digital hub area is one of the greatest successes of the Government. It has not yet reached its full potential, but when it does this area will have a similar effect on the economy of Dublin South-Central that the International Financial Services Centre has had on the economy on the northside.

The Taoiseach initiated and pushed forward this project following various recommendations from a number of bodies, which I must congratulate, the Information Society Commission, the Irish Council for Technology, Science and Innovation and Enterprise Ireland, based on recommendations in its report on the growth potential in high-tech internationally traded services.

I take issue with a number of points raised by Deputy Naughten. He said there was no vision in Government. I cannot understand how he can say that when great efforts are being made under this Bill, with the development of rings of fibre area networks across 19 towns and with 67 more to follow. His claim that no action has been taken to date on local loop unbundling is a fallacy. There are currently over 50 exchanges where there is local loop unbundling. Some partners and I have an accountancy practice in Walkinstown where we have been using DSL broadband access for over a year. Therefore, it was wrong of him to say that no action has taken place to date in this area.

I congratulate the board of the media district on the work it has done to date. It is a high powered board under the chairmanship of William Burgess, who, in his many capacities, is giving great public service to the economy. There are a number of other high profile members on that board, whom I shall not name, who have also been effective. I congratulate the Dublin City Manager, the Dublin City Council and its members for facilitating in every way the development of the digital hub project.

I have great pride in commending the Bill to the House. This hub is located in the Liberties-Coombe area, which is one of the most unique and historic areas of Dublin. It nestles between the internationally renowned Guinness's Brewery and Christchurch Cathedral and is in the midst of one of the most important communities of people in Ireland, the constituents of Dublin South-Central. There is a strong, vibrant community in the area and the agency will find its home among a welcoming community. It is important to applaud the legislation for emphasising the importance of consulting locally.

The people in the locality have benefited greatly to date. There are computers in many of the houses and flats in the area and the help and technical assistance that local people are getting from people in the digital hub is highly appreciated. There is a great sense that this project will develop into jobs, technology and a major improvement in the quality of life in the area.

It is interesting that there has been a long tradition of hubs in the Liberties-Coombe area where there are a number of specialist streets. There is Winetavern Street where wine was sold, Cook Street, Fishamble Street and Cornmarket near St. Audeon's Church. Therefore, there is a long tradition in the area of markets, trade, industry and innovation. There is also the entrance from the west into Thomas Street, which was a hub of agriculturally based commerce. This location is ideal for the digital hub, as it has had a tradition of hubs.

MediaLab Europe is located in this area, and its location there was pushed by the Taoiseach. There was a downtown in the technology field in recent years, but one can sense the manner in which it is driving back in all its aspects. More and more companies are tied into the web and the Internet and that will develop exponentially over the next few years.

With regard to the broadband network, I congratulate Dublin Corporation on putting in place an area network in the digital hub area. That was funded by the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, and by his predecessors who had the communications portfolio. Deputy Naughten referred to e-content and e-access. While the Departments in general have excellent websites and information can be accessed easily and effectively, we would all agree that e-access throughout the country is pretty brutal. The fibre optic cable currently being laid by BT, Eircom and Iarnród Éireann in 19 towns and which will be laid in 67 more towns will provide the backbone of a network which will, in a short period, enable Ireland to be at the forefront and top of the world league in e-access. The rollout of the digital hub broadband is in the shape of a ring, so to speak, and I would like spokes to radiate from it to the backbone of the network to ensure it is tied in fully with the systems that are being put in place in these 19 towns.

The European Commission is developing a network security agency, the location of which has not yet been decided. I ask the IDA and the Department of Foreign Affairs, through its contacts in Europe, to use every effort to try to ensure that this agency is located in the digital hub area. That would be an ideal location for it. That agency would be of enormous benefit to the development of the area. It location here would also enhance our national competence in an emerging, high potential area.

The network security agency would involve inter-operability and vulnerability testing between software and hardware communications providers. It would encourage such people to establish in Ireland. It would operate as a nexus for people, research as well as product development. It is an important agency and I would like the IDA, Enterprise Ireland and the Departments of Communications, Marine and Natural Resources and Foreign Affairs to work as hard and as fast as they can on having it based here and ensure it is not based elsewhere.

As regards competitiveness in the economy, the area of knowledge economy is the way forward. The competitiveness of traditional industry in Ireland is threatened by the accession of new members to the European Union and by countries in Africa and Asia. We need a knowledge economy to maintain our standard of living. We need to encourage more pupils to take science subjects so that they can become involved in projects such as the digital hub.

A recent report by Gartner consultants, a well known and highly respected group, highlighted that returns from investment in knowledge infrastructure far outweigh investment in other areas. The digital hub is a vehicle for that investment. Digital enterprises are important for our national competitiveness and our quality and standard of living into the future. I commend the Bill to the House.

Mr. Eoin Ryan

I welcome the legislation which is important for the country, Dublin and the community in which the digital hub is located. The hub is an initiative of the Government to create an international digital enterprise area in Dublin city. It shows real vision. The core development of approximately nine acres is located within the historic Liberties area in Dublin city centre. The digital hub is being developed in partnership with the community, public and private sectors and will contribute to an enriched environment in this celebrated part of our capital city.

The digital hub is well under way and includes investment of €130 million from the Government. A number of key elements of the project are either completed or are under way. These include: establishing and running the digital hub project office, attracting the anchor tenant, Media Lab Europe, the construction within the digital hub of a high speed broadband fibre ring, the Guinness Print Depot, which has just opened, the developer competition, which is ongoing, the urban framework plan and the Liberties learning initiative.

The digital hub will be the foundation and generation of a new economic base for Ireland. The project is an essential part of Ireland's long-term solution to the current vulnerability in the marketplace, both nationally and globally. The slowdown and turmoil in the economy during 2001 and 2002 in the global media, telecommunications and technology markets will make the growth of new industry sectors and the development of global markets more challenging. However, content creation, management and distribution through digital media are key areas of opportunity identified by Enterprise Ireland and IDA Ireland for future growth and competitive advantage for the country.

The digital media and entertainment industry is already global and was worth $830 billion in 2002 according to figures published by PricewaterhouseCoopers. This is forecast to increase to $1,176 billion by 2005. Newspapers, publishing and television distribution and content are the three largest segments worldwide. The United States is the largest marketplace, accounting for more than 40% of spending.

The term "digital media" describes the evolution that is taking place in the media and entertainment sectors. This evolution is enabled by the convergence of traditional media, telecommunications and information technologies. Digital media enable the creation, packaging, management and distribution of digital content on a range of digital media platforms, for example, digital television, mobile phones, personal digital assistants, the Internet and personal computers.

Development of the digital media market is being driven by a number of key technological and market trends. These include the global penetration of broadband capability and mobile telephony, the development of new business models based on digital distribution of content, increased availability of content in digital form and ongoing development in technology.

In Ireland, the digital media sector is at an early stage of development and that context bears a strong similarity to the state of the software industry ten years ago. In seeking to develop the digital media sector here, Ireland can build on the success achieved in a number of strong related sectors, notably the software and localisation industries. The country also has a strength in the education system, with a number of specialist institutions, such as Media Lab Europe, Dún Laoghaire Institute of Art, Design and Technology, Ballyfermot College and the National College of Art and Design. The production of skilled graduates is complimented by the existence of some pockets of research and development in leading edge digital technologies.

Enterprise Ireland, in its internationally traded service strategy, identified digital media as a sector with considerable potential for growth. Forfás, working on behalf of the Department of Enterprise, Trade and Employment, is developing a policy document on the content industry and its potential. Enterprise Ireland's strategy will seek to focus on specific market-driven opportunities and, in that context, the entertainment industry has been identified as a priority sector for development. Enterprise Ireland has committed €2.3 million towards the cost of developing accommodation for established, early stage and start-up digital media companies within the digital hub.

The digital hub is to be developed within one of the most unique and historic areas of Dublin. The Liberties and the Coombe area form the core of the south-west inner city and possess a rich tapestry of culture, history and tradition. It is also known as the home of Guinness. It is important that we mention that this is very good for Ireland, Dublin and for jobs. It also shows vision and that we are not just hoping the IT sector will continue but are looking at other sectors, be they this area, biotechnology or whatever. We must be vigilant, alive and awake to new trends in the world to ensure we are to the forefront.

Deputies Ardagh, Upton and others who represent the Liberties and Coombe area spoke earlier. I had the pleasure and honour to represent the area some time ago before the constituencies were redrawn. It is a fantastic, strong Dublin community. People work in the area to solve its many social problems. It would be crazy not to mention what has happened there in the past 20 years. Without doubt, it is one area that has suffered most from heroin abuse. To say it has been devastated would not be exaggerating the problem. The community has stuck together through thick and thin. It still has a drug problem but the problem of heroin abuse has been because of lack of education and opportunities. Those who become involved with heroin tend to be young unemployed males who left school before 16. It is a sweeping statement but that is generally who they are.

The digital hub project is an exciting one linking to all schools and colleges in the area to show people they have an opportunity to break that cycle of drug abuse. That is one of the reasons I support the project. I believe it will make a significant difference to the lives of people living in the area. Obviously not all people living in the area suffer because of the drugs problem but many do and it has added to the social problems in the area. Many people I met when I represented the area worked very hard to bring the area along and they deserve much credit for that. I know from having spoken to them that they are excited about this project because they see what is hoped will happen. They are especially excited about the fact that it has been linked into local colleges and schools. That shows real vision and that we can make a difference and tackle the problems of social exclusion and deprivation.

The digital hub is committed to respecting the tradition and heritage of the neighbourhood and ensuring sustainable and measurable benefits in the area. An early priority of the hub was extensive consultation with the community. The digital hub discussion document, A Vision for the Digital Hub, included initial feedback on this process.

In preparing its development strategy, Digital Media Development has partnered the community through Dublin City Council's integrated area plan monitoring committee to agree recommendations for the delivery of local benefits. The report of the IAP advisory group on the digital hub has been included in an appendix of the development strategy. The digital hub community consultation process is ongoing but can be broken down according to the most important milestones. Consultation for A Vision for the Digital Hub took place between January and July 2001, consultation for the digital hub development strategy took place between August and December 2001 and ongoing consultation took place in 2002.

In August 2001, Dublin Corporation's IAP monitoring committee formed an advisory group with the aim of contributing to the development plans for the digital hub. This group felt the Government's decision to locate the digital hub in the historic heart of Dublin presented the community, schools and business of the Liberties and Coombe areas with an exciting opportunity and challenge. Under the chairmanship of Clive Brownlee, Assistant Managing Director of Guinness, the advisory group came together to examine the potential benefit to the community for the digital hub and to recommend actions to Dublin Corporation's IAP monitoring committee. These recommendations were made under four headings: child care, education and training, enterprise, and youth services.

There was a number of pilot learning initiatives such as: the "my neighbourhood" photography competition involving about 120 people; "digiboarding" a summer project for young people; and learning in the digital hub.

I very much welcome this Bill and I congratulate the Government on introducing it. It is not alone exciting for future employment and to be seen to be at the forefront of new technology, but it is also very exciting for a community that has suffered enormously from deprivation and drug abuse over the years. I know the community has embraced this project and is very excited about the positive aspects it can bring in the years ahead.

Mr. Crawford

I wish to share my time with Deputy O'Dowd. Anything that can improve our technology base and infrastructure to bring our communications into line with others wordwide is important. In the 1970s my brother was a missionary working out in the wilds on an island known as Jamaica. At that time we only had our local telephone system. Out there they could not believe my brother had to ask the operator to connect him to Newbliss 38. They could not understand how he could not dial it directly as they were living in poverty and we were supposed to be living in reasonable affluence. We have come a long way since then.

I welcome the euphoria among the people who represent the Liberties and the surrounding areas. It involved 700 businesses and 30,000 people between workers and students, which is fantastic. I am concerned at the comments in the newspaper about the viability of the organisation and its economic problems. This was revealed as a result of a request under the Freedom of Information Act. I hope the Government will realise the benefit of that Act and either withdraw or amend the Bill that is due to come before this House before damage is done. People must be allowed to get information to which they are entitled.

Deputy Coveney and other colleagues have dealt with the main aspects of the Bill but I want to address the problems affecting the Border region and highlight the difficulties in areas that are not centres of population. The previous speaker spoke of the deprivation and difficulties in areas such as the Liberties and the need for restructuring. After 35 years of troubles in the Border region, we also have difficulties. While INTERREG and other funds granted by Europe and funds from America, Canada and Australia through the International Fund for Ireland have been helpful they have been instead of rather than in addition to Government funds. If the digital hub and e-government are to be meaningful for the Border region, that funding will be required.

In 1999 an Armagh-Monaghan group was launched by the Minister of State, Deputy Noel Treacy, whose Department provided some seed capital. That has now been set up as the M:TEK and A:TEK in Monaghan and Armagh. About 500 jobs were created as a result. While the buildings and staff are in place, they do not have the means to communicate. PricewaterhouseCoopers carried out a study and established that the critical mass does not exist to allow the big players to invest. A few years ago grants were available under the PPS and Eircom and others put in a bid. However, they subsequently withdrew because they felt it was not economical.

The group is now considering a pilot scheme to link M:TEK in Monaghan with A:TEK in Armagh through a wireless type system. INTERREG funds may be available and I hope the Government will support the project. There would not have been any point in the Minister giving seed capital in 1999 if there was not to be a follow through. It is important to utilise the last years of the INTERREG funds to the benefit of that area. As there is good infrastructure in Armagh, the majority of the 500 jobs are there. The infrastructure issues in Monaghan need to be addressed if we are to get equal benefit.

The Government has plans to utilise e-commerce throughout its systems. Yesterday, we discussed the Motor Vehicle (Duties and Licences) Bill, part of which amended existing legislation to allow motor tax to be paid on-line. If a county council in the Border region is on-line with a good service and other businesses in the region are not on the same service it means that the council could buy a product from a company in Belfast or Dublin on-line rather than from a business down the road. That is how serious it is for rural areas and we must make sure this sort of communication is available to all.

While we have an adult learning centre and the ESB, the 60 workers in M:TEK represent the only industrial jobs in Monaghan. The M:TEK site has been owned by the State for years. This shows that extending a proper communication system to Monaghan would create the potential for high-level employment opportunities for our graduates, which have not been available until now.

Datacare, an international company that created 35 jobs in the Diamond in Monaghan with little or no help from the State, has had to consider moving out of the area. It is a sad development when, despite all the funding and the supposed Government support for the Border region, a company such as this should have to consider moving. Datacare is indigenous to Monaghan and proud of it. I want to ensure that it and other industries which need the type of services broadband can provide will be helped.

Graduates from Cavan-Monaghan and other Border counties are living in Dublin and must compete for accommodation with all those working in the digital hub. They have a right to live and work in counties Monaghan, Cavan, Donegal, Louth or elsewhere.

I pay tribute to my county manager, Declan Nelson, who formed a group with the county managers of Louth and Cavan when we were not selected to receive broadband access. The group drew up a proposal, which was accepted locally, and forwarded it to the Government in December last where it awaits agreement. I support the proposal which, I understand, covers only Dundalk in County Louth. My colleague, Deputy O'Dowd, may have something further to say on it with regard to Drogheda.

Mr. O'Dowd

I will.

Mr. Crawford

The proposal covers Dundalk, Monaghan and Cavan towns, but it leaves out many other towns in the region, including Clones, Ballybay, Castleblayney, Cootehill, Baileboro and others.

Mr. O'Dowd

They all vote for the Deputy.

Mr. Crawford

Yes, they are all important.

Mr. Browne

The Deputy is on a canvass.

Mr. Crawford

I turn to the process of decentralisation, which I encourage. The cross-Border bodies were the only decentralisation projects for which the constituency of Cavan-Monaghan had good prospects of securing. We have the extraordinary position that the constituency produces two-thirds of the country's poultry as well as mushrooms, pigs and much more, yet an agricultural body formed as a result of the British-Irish Agreement was established in Cork. I do not want to hear the excuse that organisations of this nature must be located in Cork, Dublin or elsewhere because my constituency does not have broadband infrastructure.

I make no apologies for being parochial on this matter. My parochialism extends to the entire Border region. County Donegal, which has suffered tremendous job losses, Sligo-Leitrim, Cavan-Monaghan and Louth deserve to be compensated for their current position.

Wireless technology has the potential to solve many of the problems facing rural areas which I have outlined. The Border counties of Donegal, Cavan and Monaghan do not have railroads, although improvements to road structures are taking place. Broadband infrastructure would allow people to work from home and thus create unprecedented opportunities for the Border region. As a Border Deputy and former chairman of the British-Irish Interparliamentary Body, the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, should understand that the region needs and deserves broadband access.

Mr. O'Dowd

This is an important debate and I welcome the Bill. I am sorry the Minister is not present as I wanted to address my remarks to him. I am very concerned by what is happening in Government circles in relation to the roll-out of broadband in the north-east.

Like my colleague, Deputy Crawford, I acknowledge the value of counties Cavan, Monaghan and Louth working together on the issue. Their proposal to the Government is to extend broadband to six towns, Drogheda, Dundalk, Cavan, Kingscourt, Monaghan and Carrickmacross. The total roll-out of broadband to these towns would cost some €9 million. As I understand it, the Government informed the north-east strategic committee that the necessary funding was not available. The officials then went back to the drawing board without consulting the people for whom they work, namely, the elected representatives and the county councils, and decided that the decisions of the spatial strategy would apply if there was a shortfall in funds, in other words, the only towns to be connected to broadband would be Dundalk, Monaghan and Cavan. Drogheda, which is the largest town in the north-east with a population of more than 30,000 people and is planning for a town of more than 100,000 people, would, therefore, be placed in the same league as the two fine, but small towns of Kingscourt and Carrickmacross. This decision is totally unacceptable and a cause of serious concern.

It is my understanding that the proposal initially went to the Department of Communications, Marine and Natural Resources and is now being processed in the Department of Finance. I regret the Minister is not present to clarify whether this is the case. The question that arises is whether we in Drogheda will accept last place and the answer is no. This decision is neither reasonable nor rational.

The spatial strategy is the first example of administrators seeking to discriminate between regions and towns by designating some of them hubs and growth centres while ignoring others. The Minister and his Department will not be allowed to ignore the town of Drogheda. As the largest town in the region and the market leader in many respects, broadband is vital to its future and we will not accept last place. I insist the Minister does his job on behalf of his constituency and looks after the town of Drogheda. The issue is clear and simple. The Fianna Fáil led Government cannot be allowed to ignore south Louth any longer. We will not allow it to happen.

Having received 5,505 number one votes and ultimately receiving more than 10,500 votes, I speak for the people of my area when, during this debate on modern communications, the digital hub and broadband, I point out that, as a Member of the Oireachtas elected in my constituency to represent my town, I failed to raise a vitally important matter affecting my constituency and town in the House this morning. I was not permitted to raise the matter under Standing Order 31, on the Order of Business, the Adjournment or by means of a special notice question.

The issue I wish to raise is the decision of An Bord Pleanála to overrule its inspector's report on the incinerator in Carranstown and to decide by a seven to two majority, with three members absent, that the incinerator there should go ahead. I have not been permitted to debate this matter of serious concern in the House. The policy for regional waste management in the north-east, that is, for counties Louth, Meath, Cavan and Monaghan, clearly states further studies must be done before one can have thermal treatment or an incinerator in any part of the region. The decision of An Bord Pleanála has neglected—

An Leas-Cheann Comhairle

The Deputy may not discuss the matter under this Bill.

Mr. O'Dowd

I am speaking on behalf of the people of my area about a matter affecting the future of its young people.

An Leas-Cheann Comhairle

It is not appropriate to discuss it now. I have allowed the Deputy latitude on the subject and he should not continue—

Mr. O'Dowd

I appreciate that, A Leas-Cheann Comhairle, but my people charge me with responsibility for reflecting their views in this Chamber, and I will do so. If I fall foul of the rules of this House, so be it. If I have to leave here I will, but under protest. There is a lacuna in democracy if the rules of this House, which are ancient, antiquated and unacceptably—

An Leas-Cheann Comhairle

We cannot discuss the rules in the debate on this Bill.

Mr. O'Dowd

The rules do not allow me to have a proper forum here to debate this important issue. I want to debate it and I am charged with debating it here.

An Leas-Cheann Comhairle

The Deputy cannot break the rules of the House to debate it. There are rules and we are dealing with a particular—

Mr. O'Dowd

I have tried every forum. I tried to raise it under Standing Order 21, the Order of Business—

An Leas-Cheann Comhairle

This is not the right occasion.

Mr. O'Dowd

Where may I raise it?

An Leas-Cheann Comhairle

The Deputy should go to the Ceann Comhairle's office.

Mr. O'Dowd

I was elected to represent these people. This is their view.

An Leas-Cheann Comhairle

We cannot discuss that matter under this Bill.

Mr. O'Dowd

I still want to discuss it here.

An Leas-Cheann Comhairle

It cannot be discussed under the particular item we are dealing with now. If the Chair were to allow a Member to raise any matter affecting his constituency, even though it was not remotely relevant to the Bill before the House, we would have chaos in the House. We could not operate as a Parliament.

Mr. O'Dowd

There is chaos in our town because we cannot find a democratic forum to discuss this matter.

An Leas-Cheann Comhairle

If the Deputy goes to the Ceann Comhairle's office, he may get advice that will be of help to him.

Mr. O'Dowd

I have already put in a request to the Ceann Comhairle for a motion on the Adjournment, I put down a Private Notice Question and I tried to raise it on the Order of Business this morning. I tried to raise it under every possible forum.

An Leas-Cheann Comhairle

The matters now being raised by the Deputy are totally outside the ambit of the Bill before the House. The Deputy should not try to circumvent these rules.

Mr. O'Dowd

A Leas-Cheann Comhairle, I want to call for the abolition of An Bord Pleanála because there is no democratic accountability—

An Leas-Cheann Comhairle

You cannot call for that under this Bill, Deputy. The Deputy should seek to put down a notice of motion.

Mr. O'Dowd

I have put down various motions.

An Leas-Cheann Comhairle

The Deputy has the option of tabling a motion for Private Members' Business but he cannot raise the matter under the terms of this Bill.

Mr. O'Dowd

I understand what you are saying, a Leas-Cheann Comhairle.

An Leas-Cheann Comhairle

The Deputy's time is up now and I have to call the next speaker.

Mr. O'Dowd

I respect the views you have enunciated, a Leas-Cheann Comhairle, but I still say that An Bord Pleanála should be abolished. There is no transparency or openness and I am unable to question its decisions here.

An Leas-Cheann Comhairle

That matter is outside the ambit of this Bill and it is certainly not in order to raise it.

Mr. O'Dowd

The Minister will not come into this House to discuss the issue.

An Leas-Cheann Comhairle

I call Deputy Killeen.

Mr. O'Dowd

I have to insist that the Minister come into the House to discuss this matter. He cannot walk away from the major issue in my area.

An Leas-Cheann Comhairle

Deputy, I have called the next speaker. The Deputy no longer has the floor.

Mr. Killeen

Go raibh maith agat, a Leas-Cheann Comhairle—

Mr. O'Dowd

A Leas-Cheann Comhairle, I have to insist on my right to raise these issues here on behalf of my constituents.

An Leas-Cheann Comhairle

The Deputy cannot do that because it is not in order.

Mr. O'Dowd

A Leas-Cheann Comhairle—

An Leas-Cheann Comhairle

I cannot argue with the Deputy further. I have called Deputy Killeen. The Deputy should allow the business of the House to proceed.

Mr. O'Dowd

The real business of the people whom I represent is the issue I want to raise today. That is the most important issue for them.

An Leas-Cheann Comhairle

The Deputy should resume his seat.

Mr. Killeen

I, too, welcome the Digital Hub Development Agency Bill. It represents—

Mr. O'Dowd

A Leas-Cheann Comhairle—

An Leas-Cheann Comhairle

I have asked the Deputy to resume his seat.

Mr. O'Dowd

I want to raise this issue.

An Leas-Cheann Comhairle

The Deputy knows he is out of order. He knows the rules of the House and he knows he is blatantly breaking those rules.

Mr. O'Dowd

The rules are—

An Leas-Cheann Comhairle

The Deputy knows he is breaking the rules of the House. He is seeking to be put out of the House and I might oblige him.

Mr. O'Dowd

I do not want to be put out of the House. I want the Minister, Deputy Ahern, and the Minister for the Environment and Local Government, Deputy Cullen, to come in here.

An Leas-Cheann Comhairle

The Deputy is being outrageous. He should resume his seat. I call Deputy Killeen.

Mr. Killeen

The Bill represents a tangible and substantial advancement—

Mr. O'Dowd

A Leas-Cheann Comhairle—

Mr. Killeen

—in relation to the digital media issue. I commend the Minister and the Minister of State, who presented the Bill to the House.

Mr. O'Dowd

A Leas-Cheann Comhairle, on a point of order—

An Leas-Cheann Comhairle

The Deputy cannot raise a point of order.

Mr. O'Dowd

Where is my democratic forum?

An Leas-Cheann Comhairle

The Deputy should look at the rule books.

Mr. O'Dowd

I looked at the rule books.

An Leas-Cheann Comhairle

I ask Deputy Killeen to proceed.

Mr. Killeen

The Bill also raises issues concerning public private partnerships and related issues.

Mr. O'Dowd

This is the only forum in which I can raise it, a Leas-Cheann Comhairle.

Mr. Killeen

The Bill highlights some of the difficulties which have arisen, and inevitably will arise, in that area in the short and medium term. One of the difficulties people face when discussing an issue such as this is the huge number of technical terms that can arise in that they have difficulty in establishing the meaning of each term. Despite the strong move nationally towards more involvement in e-media, people are experiencing difficulties in terms of speedy access to the system, particularly to DSL, broadband lines and even ISDN lines. I welcome the prospects for progress that arise under the wireless land project, which appears to be the project which offers the best hope to rural communities and those who wish to establish their operations outside the greater Dublin area.

A number of previous speakers referred to the tremendous progress made in this area in other jurisdictions. The progress is so rapid it is difficult for any country to maintain the speed of development that is required internationally. Particular reference was made to the new project in Kuala Lumpur which has already succeeded in attracting over 200 companies. It has some similarities to a digital hub project here because approximately 10,000 residents are already in the area in which the project is being set up.

It is important also to examine the progress of the IFSC project which many people believed was unlikely to deliver high quality jobs of a significant number but which has far exceeded the expectations of even those who were optimistic at the time. Many of the companies in the financial services district are now looking to expand to regional centres, which is welcome. Some of them have already made that move and one company is looking at a location in County Clare, which we welcome.

We should also examine the success of the Plassey technological park in Limerick, which is breaking new ground, as is the case with this particular project. The Liberties-Coombe area is an imaginative location and the involvement of the community in the consultation process would be a role model for future projects in that it presents many exciting opportunities and challenges.

In his contribution, the Minister of State referred to digital content as that which can be manipulated, stored and exchanged electronically and which includes sound, pictures, text and video. The IT and the ICT areas operate across a number of sectors, including education, information, entertainment and, particularly in recent times, consumer related content which has gradually become one of the areas where the ICT sector is making substantial advances.

The digital content area was the key growth area in the ICT revolution over the past ten years or so, contrary to what was predicted by many experts. There is no doubt, however, that this country must urgently move up the technological value chain and in that regard the enhanced value from research and development is of major importance. While the Government has provided €2.47 billion in the national development plan for the research and development area, it is clear that even that seemingly large amount is not sufficient to address the technological advances that will be required of this country if it is to maintain a position at the forefront or gain an advantage over some of the other players. Speaking on the Finance Bill the Minister for Finance indicated that the area of research and development was one on which he would look favourably in terms of tax-based incentives. That area may need to be revisited quickly.

There is also an urgent need to create a critical mass at the forefront of the industry. That is one of the jobs the new agency is charged with doing and there are already indications that, on foot of progress to date, this can be achieved with the necessary investment. In order to achieve the aims set out by the Minister we will need a very high grade telecommunications infrastructure not just in the area of the project but nationally. There are difficulties associated with that but some of those have been overcome or addressed under the regulatory regime.

Such regimes tend not to be popular with existing players, as we have seen in telecommunications, electricity and aviation but that is inevitable. However, for the advancement of the sector and the country's future positioning at or near the forefront of the industry, it is necessary that the regulatory regime be sufficiently strong to enable advances in choice and competition to be made. Some progress has been made with unbundling the loop project in over 50 locations at this stage and there is considerable pressure on the existing Eircom infrastructure, as there are requirements for bandwidth which have not been available heretofore. There are also substantial price pressures and the Minister has indicated he is moving towards a regime where a flat rate will apply, but there is a need for wholesale prices for those involved in industry which are not available at this stage to any extent.

There are questions surrounding access to the service and also in relation to the improvements which can arise with sufficient competition. There are also issues regarding choice of both service provider and pricing. Such issues are relevant to industry, big and small, as well as the domestic consumer.

Some progress has been made on regulatory issues on foot of the E-Commerce Act 2000 and more particularly after the Communications Regulation Act 2002, when the commission was set up. However, more needs to be done.

Education is one sector which stands to benefit enormously from this project and from ICT developments generally. We need to invest more heavily and imaginatively in that area. The national development plan provides for almost €700 million in funding for research and development in the higher education sector but there is incontrovertible evidence that our system is not as science and technology friendly as it ought to be. A report by the Joint Oireachtas Committee on Education, with Deputies Naughten and Richard Bruton as rapporteurs, examined the extent of the need to advance studies of science and mathematics at second level. We are slipping considerably in this area. Recently the committee had a presentation from the Institute of Engineers in Ireland regarding the Steps programme, which was introduced jointly by the Institute and the Department of Education and Science to progress this issue. Some progress is being made on foot of that programme.

I recently saw a UK report on the same subject and there are also some comparators to indicate that across Europe, and in the US and Asia to some extent, science, mathematics and technology subjects have begun to slip in the order of importance and preference for students throughout the system. That might be to the advantage of Ireland if it continues elsewhere but it is to our disadvantage if we do not address the problems which have become apparent.

Debate adjourned.