Vol. 617 No. 6
6 Mr. Costello asked the Minister for Communications, Marine and Natural Resources if he will report on the recent frontier Slyne-Erris-Donegal licensing round; his views on reviewing the current terms for the exploration and exploitation of natural resources here; and if he will make a statement on the matter. [13610/06]
Five applications were received for frontier exploration licences in the recent Slyne-Erris-Donegal licensing round which closed on 15 March. These applications were from Statoil Exploration (Ireland) Limited with Shell E. & P. Ireland Limited as a partner, Serica Energy (UK) Limited, Grianan Energy Limited and two applications from Island Oil & Gas plc with Lundin Exploration BV and Endeavour Energy (UK) Limited as partners. A total of six full blocks and ten part-blocks were applied for under the licensing round. These applications are being considered by officials of the Department. Awards of licences are not expected to be announced until early June.
The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, and I are pleased with the response to this licensing round and hope that it will, in time, lead to new petroleum discoveries. In Ireland, we import 80% of our natural gas requirements and 100% of our oil requirements. It is therefore extremely important that we try to reduce or eliminate this high level of dependency on petroleum imports. For that reason we need to continue promoting and encouraging petroleum exploration in Ireland.
Ireland's terms are kept under constant review by the Department in light of the international market in which Ireland seeks to attract exploration companies. Ireland has yet to make the breakthrough needed to establish its prospectivity. The awards to be made under the current round will be issued under the 1992 licensing terms. When this round has been completed, the Minister, Deputy Noel Dempsey, will turn his attention to the question of whether the 1992 licensing terms remain appropriate in this age of high gas and oil prices and the emerging tight supply position in Europe.
The Minister, Deputy Noel Dempsey, told us last autumn that he was considering re-examining the licensing terms for our oil and gas reserves. We have not heard a word from him since. During the earlier discussion today, I thought we should do an audit of how much taxpayers' money the Minister, Deputy Noel Dempsey, has lost. I mentioned the voting machines and the climate levies. Perhaps we also have serious possible losses to the Exchequer from his dilatory behaviour on these licences.
I welcome the five licences to which the Minister of State referred. Looking at our frontier territory, I notice that two thirds of the blocks in the north-west have yet to be awarded. As any oil and gas found belongs to companies which only pay 25% corporation tax, it leads to the possibility of grave losses for this country. The companies do not even have to land the oil here. The 1992 licensing terms are extremely generous.
Approximately one year ago, the Minister gave Providence Resources and Sosina Exploration an exclusive licence to explore and exploit the so-called "Dunquin" area off the south-west coast. The great Dr. — or Sir — A. J. F. O'Reilly has a 7% interest in those companies, which one of his journalists estimated may now be worth €20 billion. Those companies simply transferred 80% share in the licence to ExxonMobil. Why could the Minister, Deputy Dempsey, not have done that? Why could he not have made an arrangement from the start to get the maximum possible benefit for the people with the larger exploration company?
The real point of the Slyne-Erris concession is that once again we are sleep-walking and giving away vital resources and reserves from the people. I brought forward a Bill on behalf of the Labour Party, which would include an annual report to Parliament, such as the climate report requested by our Green Party colleagues, to keep terms constantly under review.
My great predecessor, Justin Keating, instituted a much fairer regime in the 1970s, which the Minister of State's Government and predecessors wrecked and left us in the helpless free-for-all situation we now have. It is time we had urgent reform of Irish offshore licensing in the best interests of the country. This week Forfás stated we have a dangerous oil dependency, are addicted to oil and the country is vulnerable until our renewable energy sources are brought up to scratch. We must take care of our indigenous resources.
I should have included in the reply that a strategic environment assessment is being undertaken for the Slyne-Erris-Donegal basins. The result of this will be known by early April. However, it is subject to a public consultation process during April and May and no licence will be awarded until after this time.
Regarding a review, the Deputy will be pleased to know that the Minister, Deputy Noel Dempsey, has agreed to have a review in the Department, which is under way. Ireland has yet to establish itself as a petroleum province. The details for the Slyne-Erris-Donegal round state that licences will be issued under the 1992 licensing terms. The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, requested that a thorough and comprehensive review of licence terms be completed as quickly as possible, and work is progressing on this review. He will engage consultants to participate in this process to ensure an independent perspective on work completed to date in the review, and to consider the overall terms.
Have lessons been learned from previous exploration experiences, for instance in respect of the development of the Corrib gas field? If so, will those lessons be applied in current and future exploration? To what extent are the Minister of State and his Department satisfied that some changes are necessary?
Deputy Broughan made the point this morning that we need to be sensitive in making decisions and to take into account people living in the area. In respect of the Slyne-Erris-Donegal round, a strategic environmental assessment is under way which will go to public consultation before licences are issued. I worked in this Department in the past and saw that companies are not in any great rush to get involved in exploration — there was no interest in one of the previous rounds.
The Minister of State was on the rigs. He saw the flows.
At that time I met the union and had several discussions about reviewing the terms. I am pleased that the Minister has decided to carry out a comprehensive review and to involve consultants to ensure an independent point of view, although sometimes we complain about consultants.
Is it possible to include a condition in the licensing arrangement that any oil or gas found would be landed and processed in Ireland, or is it possible that someone could discover oil or gas in our waters and process and land it elsewhere?
I take the Deputy's point and will put it to the officials to see if it is being considered in the review which covers all issues.
If the uptake is so poor why is the gas or oil not left in the ground, given that it is of no benefit to us? Were no lessons learnt about the individuals involved in negotiations on behalf of the State? Part of the problem regarding the Corrib gas line may have been that certain individuals had their own interests at heart, rather than those of the State. What is the benefit in giving away an asset for the benefit of private companies if the Irish people will not benefit? There are very few jobs in this area so the Minister of State cannot use employment as an excuse.
I do not accept that leaving the oil or gas in the ground is the answer. The cost benefit analyses in respect of the Corrib gas line found it would be important to bring the gas ashore. That would create many jobs but as Members said this morning, if we bring it ashore we need to take account of the sensitivities involved. We need to learn lessons from what has happened and make decisions based on what is before us. We also need to take into account the importance of finding gas and oil at a time when we import 100% of our oil and 70% of our gas.
7 Mr. Crowe asked the Minister for Communications, Marine and Natural Resources if he will report on the roll-out of broadband here; the percentage of people who have access to it; the number of homes that have broadband connections; and how Ireland fares in comparison with the rest of Europe. [13765/06]
30 Mr. Timmins asked the Minister for Communications, Marine and Natural Resources Ireland’s position in regard to availability, quality and cost of broadband services in the European league; if he has in mind plans to encourage bringing the services here into line with other countries; and if he will make a statement on the matter. [13834/06]
106 Mr. Noonan asked the Minister for Communications, Marine and Natural Resources when he expects the provision of broadband and associated facilities to achieve the same levels as in other jurisdictions with which Ireland competes; and if he will make a statement on the matter. [13809/06]
I propose to take Questions Nos. 7, 30 and 106 together.
The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector companies operating in a fully-liberalised market, regulated by the independent Commission for Communications Regulation, ComReg.
In comparison with other European states, broadband providers in Ireland were slow in launching competitive, affordable broadband. The lack of competition between providers and the reduction in investment in infrastructure in the aftermath of the dot-com crash weakened the initial roll-out by providers here. The situation, however, is improving rapidly and the level of uptake is consistent with the stage of development of the market. Ireland is now the fastest growing broadband economy in the EU. The latest ComReg quarterly report states there are 270,700 broadband subscribers as of end-2005. This is equivalent to 6.6% of the population. There are also an estimated 600,000 narrow band users.
Home Internet penetration figures stand at 18.7% of households. Almost 140,000 new broadband subscribers were added in 2005, a growth rate of 106% in 2005. This compares to 100,000 new broadband subscribers in 2004. The Government target is 400,000 by end-2006, namely, almost 10% of population or 27% of households. The Minister's challenge to industry is 500,000 broadband subscribers by end-2006, that is, approximately 12% of the population or 34% of households. This is the lowest cost country in the OECD for international connectivity, our regional broadband pricing is on a par with the best in Europe, and the price of basic broadband access is at the EU average. Furthermore, Ireland is now one of the cheapest locations in the world for international leased lines.
The Government is addressing the infrastructure deficit in the regions by building high-speed open access metropolitan area networks, MANs in 120 towns and cities nationwide, on a phased basis in association with the local and regional authorities. Phase 1 of this programme has delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget.
This programme has been extended to a further 90 towns in various locations nationwide. Design and procurement has already commenced in several regions and construction is due to start over the coming months. It is expected that these MANs will be completed during 2006 and 2007. These MANs will allow the private sector to offer world-class broadband services at competitive costs.
The Department also offers funding assistance for smaller towns and rural communities to become self-sufficient in broadband through the county and group broadband scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, over 150 projects have been approved for funding under this programme.
A joint industry-Government fund of €18 million has been established for the broadband for schools programme, which will provide every school in the country with broadband by the first half of 2006. The construction and installation phase is under way, and the project is on target for completion within the set timeframe.
Full details of the regional broadband programme can be found on the Department's website www.dcmnr.gov.ie.
Does the Minister of State not accept that the State's broadband coverage is shameful and as a result the Government has decided to privatise Eircom? In the Six Counties, 100% broadband saturation has been reached, compared with the figures of 1.7% coverage in the Twenty-six Counties last year.
The European Commission recently criticised Ireland for being one of the slowest movers in the provision and usage of Internet technology. If the Government is committed to the idea of a knowledge-based economy why is broadband take-up in Ireland among the lowest in the European Union?
The Minister of State puts it down to lack of competition but are we not awaiting the goodwill of private companies and relying on private investors? If the Government had held on to the Eircom shares it could have invested those hundreds of millions of euro that went to private speculators.
The State is providing funding for the roll-out of broadband. As outlined, the MANs project is going to 120 towns and cities nationwide, with phase 1 completed and phase 2 under way. The Government-funded schools broadband project will be completed this year. The county and group broadband scheme is grant-aided by the Government and my Department.
We are disappointed in the response from the private sector and that is why the Department got involved and provided substantial sums of money for the three projects I have named.
Notwithstanding the Minister of State's explanation for the slowdown in the dotcom sector, does he agree that the real reasons for the slow provision and take-up of broadband were Government inertia and ineptitude, its failure to recognise that the situation had changed, the lack of investment in the infrastructure and the lack of a driving force in the Department? The dividends drawn from the infrastructure as a result of the new situation should have been re-invested in the infrastructure instead of the other way around. Does the Minister of State accept that the Department, which should have been the driving force, failed to recognise the danger signs and let matters run along?
As I stated in my reply, the Department's target for this year is 400,000 by the end of the year.
It is the same target as last year.
We have invested substantial sums of money in the MANs, rural areas and school projects and this investment will continue. As I outlined earlier, we are seeking a further €6 million to continue to invest in major towns throughout the country where the MANs project does not operate.
Is it not true that when Deputy Noel Dempsey became Minister for Communications, Marine and Natural Resources, he stated during a visit to UCD that he wanted 600,000 lines by the end of 2006? He then changed his target. He is only halfway there. Every Deputy receives e-mails, or telephone calls in the case of people who do not have e-mail outside work, in respect of broadband. One such call I received this week came from a newly expanding area in Wexford. The person who contacted me was very irate because they had done everything possible to obtain a broadband connection but still had not been connected, despite the fact that a Minister comes from the area in question. It is very embarrassing for all of us that the situation regarding broadband services is so poor.
Has the Minister of State consulted the Australian venture capitalists, Babcock & Brown? Representatives from the company visited Dublin in recent weeks and sought out Opposition spokespersons and other relevant individuals. Babcock & Brown appears to have a very clear vision of what it wishes to do, which is to re-organise the network as a separate company which is not connected with the retail division and Meteor. Has the Minister of State met the company? What are his views in respect of the possible impact on the network of a takeover of Eircom by Babcock & Brown?
When will the Minister of State bring forward legislation relating to ComReg, which we have sought for a long time? When does he plan to strengthen ComReg? We receive all its press releases but everything in them is aspirational. Why can we not have a real regulator like Ofcom in the UK?
What is the Minister of State doing to stimulate demand? He spoke about the schools programme but is it not pathetic that we do not have a dedicated educational programme? Why can we not give every child a laptop and produce new pedagogical material that reflects how teaching will be revolutionised in the new era? If it is not possible to introduce such measures now, why does the Minister not announce that the next Government will introduce them?
I understand that I will answer a later question which concerns Babcock & Brown, a company which is interested in a takeover of Eircom. Department officials have held meetings with the company.
I am aware of the broadband related problems in Wexford. I sent a message to the woman in question which informed her that if she contacted the Department, it would resolve matters for her.
She knows I have Wexford connections.
Deputy Broughan is keeping a close eye on Wexford. What was the subject of Deputy Broughan's next question?
My questions concerned ComReg and education.
I understand that the Bill relating to ComReg is being prepared and will be available shortly. The Department will continue to drive broadband and achieve our targets, as I stated earlier.
The Government is not achieving its targets.
We are getting there.
8 Mr. Deasy asked the Minister for Communications, Marine and Natural Resources his preferred options for the development of local radio in view of the development of the industry in recent years with particular reference to sales or takeovers; and if he will make a statement on the matter. [13829/06]
The licensing of local radio is a matter for the Broadcasting Commission of Ireland, BCI, which carries out its functions under the Radio and Television Act 1988. In this regard, the BCI is charged with the orderly development of sound broadcasting services and with ensuring the appropriate development of the sector. Independent radio and community radio undertakings have all performed well over the past decade. It could be concluded that the overall framework and structure is suitable as is and should not be significantly altered. However, it is the case that services and markets will change over time and it is likely that a static approach to the development of the radio licensing framework will not, in the long run, serve the listener well.
With this in mind, in late 2003, the Minister for Communications, Marine and Natural Resources initiated a review of radio licensing in Ireland. This review culminated in a study by sectoral experts entitled the Ox report. The report indicated that additional radio licensing is possible in Ireland, given the availability of spectrum. The report raised some concerns regarding the viability of some local radio franchises given their market size. The report also considered issues around ownership and control of radio stations and the need for balance in this regard. Options with regard to financial charges such as spectrum levies and royalties on radio stations using scarce spectrum were also discussed. In developing the legislative proposals which will establish the broadcasting authority of Ireland, the Minister will consider the findings of the Ox report and developments in the local radio sector generally.
Will the recommendations of the Ox report be implemented in full or will they be kept secret? Will the Minister of State share the report with his colleagues in the House for the betterment of the industry? Notwithstanding the success to date of the local and private broadcasting sector, it is now necessary to review in the context of the broadcasting Bill, which should have been put before the House by now, the developments which have already taken place in the public broadcasting sector and which are likely to take place in the private broadcasting sector. Given the movement of the marketplace, the degree to which takeovers, sales or buyouts are likely to take place in the local broadcasting sector could have an impact on the degree to which local broadcasting remains an entity.
All the issues raised by Deputy Durkan were addressed in the Ox report and have been considered by the Minister. There is nothing secretive about the report. In it Ox Auction Experts examined four different tools which could be used to generate a financial return to the State. These were auctions, which is a mechanism to assign a licence to the highest bidder; market-based spectrum fees or royalties; clawback arrangements, a method used to ensure that a portion of any windfall profits earned as a result of spectrum ownership are shared with the Exchequer; or a combination of these mechanisms. All these issues have been put forward and are being considered by the Minister. He has not made a final decision but all of these mechanisms are up for consideration.
Does the Minister of State not accept that there are grave concerns that a number of dominant companies are gaining control of significant numbers of stations and that, ultimately, viewers and listeners will be left with restricted choice? Is this not the core point which the Minister must address?
In that context, will the Department make any announcement on digital audio broadcasting, DAB, which operates in the UK. DAB provides additional free to air services. I am unaware of any DAB services in Ireland. Why have we not taken some initiatives in respect of DAB which is a very exciting development in UK media circles?
I wish to make a slightly parochial point, although I am the Labour Party's national spokesperson on this issue. There is grave disquiet in the Dublin region over the decision by the very successful local radio station, NewsTalk 106, to apply for a national radio licence. This station covers all aspects of social and economic life in Dublin very well and has been especially valuable for Dublin public representatives. There is grave concern that the service provided by NewsTalk 106 to the Dublin region, which is replicated by between 30 and 40 other regional radio stations throughout the country who perform so admirably, will be lost if NewsTalk 106 becomes a national station. We need a Dublin-based public affairs station like NewsTalk 106.
It is very important that a station like NewsTalk continues to broadcast and is available to Dublin. We have South East Radio and other stations around the country are very much regionally or locally based. It is important that cities also have locally based radio stations. I will bring the Deputy's views to the Minister. The report of Ox Consultants is with the Minister and, hopefully, some decisions will be made shortly.
I want to speak on the Minister of State's last point. The country could benefit from a station such as NewsTalk broadcasting elsewhere.
Get it out there.
Does that not mean we will have less time?
It is time to be shared.
I am not sure. Perhaps my colleagues across the country could hear the wisdom of Deputies in Dublin. NewsTalk has added to public debate. It was a significant risk and endeavour to try to set up a talk radio station of high standard and NewsTalk should be recognised for doing so. I would be concerned if it went national and lost some of its Dublin impetus but, at the same time, there is room for such a national talk station to rival RTE Radio 1. I would have asked the Minister of State about whether he has any knowledge of when a decision will be made on this matter but, from his final comment, the answer would be "no". Is it purely for the commission to make the decision or can any reference be made to the Minister?
The BCI is the governing body. It is obligated to consider the desirability of allowing any person or group of persons to have control of or substantial interest in an undue amount of communications media in an area specified when considering the award of a licence and to take account of local needs. The BCI will take into account the issues raised by Deputy Eamon Ryan. In my part of the country, we have local radio stations. I am sure it is the same elsewhere. We also have Beat 102-103, which was recently set up as a regional station and has proven successful. I am not the final decision maker but I do not see a reason cities should not have local stations also.
Who decides in respect of digital audio broadcasting? Does the BCI or the Minister of State take the decisions?
I am not sure but will get the information for the Deputy.
9 Ms O. Mitchell asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to recent expressions to the effect that the State might regain some control of the Eircom infrastructure; if he has had discussions with any of the parties involved in this regard; and if he will make a statement on the matter. [13798/06]
10 Mr. Naughten asked the Minister for Communications, Marine and Natural Resources if he or his Department has studied the possible implications of sale or takeover of Eircom; if he has had discussions with any of the parties involved with a view to ascertaining the future development of the infrastructure; and if he will make a statement on the matter. [13813/06]
34 Ms Lynch asked the Minister for Communications, Marine and Natural Resources the implications for Ireland’s national telecommunications infrastructure if Eircom is taken over by investment group Babcock & Brown; if he has met Babcock & Brown, Eircom management and other stakeholders on the proposal; and if he will make a statement on the matter. [13613/06]
51 Mr. Neville asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the suggestion that the State should regain control of part of the Eircom infrastructure; and if he will make a statement on the matter. [13811/06]
58 Mr. Naughten asked the Minister for Communications, Marine and Natural Resources if his attention has been drawn to the need for urgent investment in the Eircom infrastructure; and if he will make a statement on the matter. [13812/06]
85 Mr. Cuffe asked the Minister for Communications, Marine and Natural Resources the meetings his Department officials have had with representatives from Babcock & Brown investment group with regard to the future of Eircom; and the content of such discussions that took place. [13745/06]
I propose to take Questions Nos. 9, 10, 34, 51, 58 and 85 together.
The State has no plans to invest in Eircom's infrastructure or regain control of any part thereof. Representatives of Babcock & Brown, a global investment and advisory firm founded in 1977 and listed on the Australian Stock Exchange, met with representatives of the Department of Communications, Marine and Natural Resources on 22 February. Babcock & Brown sought to introduce itself to the Department as a courtesy and advise of its interest in Eircom. As Eircom is not a State company, the Department has no role in any talks between the companies.
The provision of telecommunications infrastructure and services is a matter in the first instance for the private sector companies operating in a fully liberalised market regulated by the independent Commission for Communications Regulation, ComReg. However, recognising that a principal reason for the slow roll out of broadband services has been the lack of investment by the private sector in the necessary infrastructure to deliver broadband to all areas, the Government is addressing the infrastructural deficit in the regions by building high speed, open access metropolitan area networks, MANs, in 120 towns and cities nationwide. Phase one of this programme has delivered fibre optic networks to 27 towns and cities throughout the country.
Additional information not given on the floor of the House.
This programme has been extended to over 90 towns in various locations nationwide. It is expected these MANs will be completed during 2006 and 2007. These networks will allow the private sector to offer world class broadband services at competitive costs.
The Department also offers funding assistance for smaller towns and rural communities through the county and group broadband scheme. The scheme is technology-neutral, allowing the community to select the most suitable broadband delivery platform for the area. To date, more than 150 projects have been approved for funding under this programme. These initiatives are co-funded by the European Regional Development Fund under the national development plan. Funding under the plan also assisted Eircom and BT to enable more than 50 exchanges to provide broadband services and also co-funded the construction of a national backbone network by ESB Telecoms.
The Minister of State should expand on the Department's preferred options now that an opportunity appears to have arisen for someone to take over or buy Eircom. Does the Minister of State agree there are implications for the consumer? For example, is it likely that the provision of broadband facilities will continue at a slow pace or will there be a low investment level in infrastructure? Will the Minister of State comment on the opinion expressed by a number of economists that the State should have control of certain vital elements of the telecommunications infrastructure? Has this been given any consideration or is it likely to happen? Must we wait to determine what will occur in respect of who owns Eircom?
Let us assume a company other than Babcock & Brown decides to take over Eircom without a plan. For example, Babcock & Brown has proposed the separation of two elements of the service provision, which would leave one part under the control of one company and the other part under the control of another group without having common board members. Would it be possible for the State to examine what is about to happen and determine whether there are implications for the future so it could become involved?
The State has no plans to re-invest in the Eircom infrastructure. Babcock & Brown has approached the Department and explained its interest in Eircom. I am sure that other companies will also be interested and inform the Department accordingly. The Government has no interest in reacquiring Eircom. It will be for private investors to get involved. In recent months, Babcock & Brown Capital Limited has acquired shares in Eircom Group plc.
Given the crucial role of Eircom in respect of our telecommunications infrastructure and broadband, would it be possible for the Government in discussions with the possible new owners — there are many discussions that must take place, including with people representing the ESOT and other stakeholders — to request of them under the universal service obligation to operate the network in a way that would be beneficial to the final broadband enablement of Ireland? Is it good enough for the Minister of State to tell the House he is just a bystander? The Taoiseach, who is usually where the Minister of State is sitting, is always a bystander, the man in Croke Park watching the match. He is never the man who must take responsibility or run the team. In reality, he is the man who runs the team, as seen in the case of Aer Lingus where he made the decision to privatise the company. If the takeover occurs, does the Minister of State agree there should be a precondition set in respect of the shambles that is the roll out of broadband?
The Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, has spoken about the mysterious "Project Dingle". Perhaps that should be "Project Daingean". As far as we on this side of the House have been able to determine, "Project Dingle" means that all of the broadband infrastructure of the semi-State bodies would be brought together under a single leadership. A dynamic person in the industry has recently taken over the running of Enet. With such a track record, what are the implications for "Project Dingle"? Will it go ahead or was it only conceived of by the Minister when he was answering questions in the House?
Given recent developments in respect of the Australian venture capitalists, is it not incumbent on us to speed up the introduction of new powers for ComReg, in particular regarding the regulation of the network, so the mess we have got into in the past six or seven years under this Administration will not continue?
It is always important that we have the most modern powers in place to deal with our actions and decisions. Babcock & Brown approached the Department. We have no say in the purchase of Eircom but, if Babcock & Brown did purchase it, we would hold discussions with that company in respect of the development of broadband.
Did Babcock & Brown ask the Department about what the new legislation will include?
The legislation is being prepared in the Department. We want to engage with any company that takes over Eircom to help develop and roll out broadband and determine what are the company's aspirations and views. I am sure we will do so. There may be other Babcock & Browns that will become involved in the purchase of Eircom. We will not get involved in any way, shape or form at this stage. I am sure that if the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, stated that "Project Dingle", as the Deputy called it, will be rolled out and implemented, that is what will happen.
The Government might be rolled out first.
I told Deputy Durkan to wait until next May.
The Government will be rolled out.
As Eircom has been scrutinised by so many groups, I am unsure whether there are many with which Members are unfamiliar. Does the Minister of State not agree that while he has stated that the State would not buy Eircom, no one has suggested that it should. Babcock & Brown appears to propose splitting the company in two. Hence, while Eircom would continue to act as a supply and mobile telephone company, the network would be available. Is there a possibility of buying back the wires rather than buying Eircom? Such a network could then be operated on an open basis for companies like Eircom and other suppliers. Is that a possibility?
The Minister of State noted that there might be another purchaser. However, I understand that Babcock & Brown's shareholding is sufficient for it to be in a commanding position to determine whether another bid would be successful. This makes the possibility of another purchaser extremely unlikely.
Does the Minister of State agree that effectively, at present the State is engaged in establishing its own independent separate network? He lauded the significant financial investment that has been made in alternative fibre networks, very little of which has been lit up. To an extent, this investment went against some of the recommendations of the Oireachtas Joint Committee on Communications, Marine and Natural Resources. In terms of an alternative network, it did not make sense to replicate fibre networks that were already in place.
Hence, rather than spending hundreds of millions by building an alternative network and adopting the Minister's "Project Dingle dell", it might be worthwhile for the State to consider setting up a single fibre optic network on which all companies could co-exist. Is Ireland big enough to have two fibre optic networks? That does not seem to make economic sense. If Babcock & Brown buys the company and divests itself of the network, it might be worth considering the possibility that it would be cheaper to buy it than to build our own separate network.
Does the Minister of State accept that Eircom has come full circle? Once it was a fully listed company on the Stock Exchange with a fixed line and mobile network service. Later, it sold its mobile network service. Subsequently, it delisted from the Stock Exchange before floating again last year and since then it has talked about buying another mobile telephone company. It appears to have gone in a circle. Perhaps the circle to which Members should return is consideration of the question of public ownership.
The only company which has an interest at present of which I am aware is Babcock & Brown. It has significant shares in Eircom at present. I am certain that at present, the State has no plans to invest in Eircom's infrastructure or to regain control of any part thereof.
Has Babcock & Brown plans for the State?
11 Mr. English asked the Minister for Communications, Marine and Natural Resources the action he proposes to take to resolve the issues surrounding the development of the Corrib gas field; if the various interests have been fully explored and examined with a view to resolution of all outstanding matters at an early date; and if he will make a statement on the matter. [13825/06]
38 Ms O’Sullivan asked the Minister for Communications, Marine and Natural Resources the stage at which the mediation process on the Corrib gas pipeline is at; when he expects an agreed resolution to the dispute; the way in which he quantifies the importance of the Corrib find to the country; and if he will make a statement on the matter. [13611/06]
83 Mr. G. Mitchell asked the Minister for Communications, Marine and Natural Resources the progress which has taken place in regard to the resolution of all outstanding issues associated with the Corrib gas field; when it is expected that supplies will be available; and if he will make a statement on the matter. [13800/06]
178 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the progress which has taken place in regard to the resolution of all outstanding issues associated with the Corrib gas field; when it is expected that supplies will be available; and if he will make a statement on the matter. [13847/06]
210 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources the action he proposes to take to resolve the issues surrounding the development of the Corrib gas field; if the various interests have been fully explored and examined with a view to resolution of all outstanding matters at an early date; and if he will make a statement on the matter. [13885/06]
I propose to take Questions Nos. 11, 38, 83, 178 and 210 together.
As the Deputies are probably aware, a number of residents living close to the onshore upstream pipeline for the Corrib gas field have been expressing concerns regarding its safety. To allay the fears of the residents, the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, commissioned an international consulting company, Advantica, on 25 August 2005 to carry out a thorough and independent safety review of the proposed upstream onshore pipeline. Advantica is a world leader in the area of advanced hazard and risk assessment technologies of gas pipelines.
In parallel with this safety review, the Minister established a public consultation process to ensure that the concerns of the community would be fully addressed in the review. As part of this process, a two day public hearing was held in Geesala on 12 and 13 of October, chaired by Mr. John Gallagher SC, during which the community was given the opportunity to express its concerns directly to the consultants. The consultants also made a separate site inspection of the pipeline route and subsequently took the local concerns into account when carrying out their review. The review also critically examined all relevant documentation relating to the design, construction and operation of the pipeline and associated facilities, as well as to conclude whether the proposed installations would comply with recognised international best practice and would deliver a facility that it is fit for its purpose. Advantica was also asked to identify any deficiencies with regard to the safety of the pipeline and to make recommendations as to how these, if identified, would be remedied.
Additional information not given on the floor of the House.
The draft safety review was presented to the community on 8 December 2005 and published on the same day. Comments were invited on the draft, with a closing date of December 22. The final report of the safety review was received in the Department recently and will be published shortly, together with recommendations arising from it made by the Corrib pipeline technical advisory group within the Department.
The Deputies will also be aware that the Minister has, after consultation with relevant parties, nominated a mediator, Mr. Peter Cassells, to work with the parties. This process is ongoing and entirely independent. However the Minister will obviously take account of any specific recommendations which might arise and are relevant. The Minister will publish the Advantica report, the technical advisory group report and recommendations arising from them. In addition he will consider consents for phases five and six of the project, which must be decided on the basis of the Advantica and technical advisory group recommendations, in due course.
The main benefits to the State will be that Ireland will again have a significant indigenous energy supply. This will result in a reduced dependence on gas imports for some three to four years at a time when our main supplier to date, the United Kingdom, will become a net importer of natural gas, due to the depletion of its reserves. Other benefits to the State from this discovery would be that the Corrib field may act as a catalyst for the possible extension of the Bord Gáis Éireann gas distribution system to towns in the north-west region, as well as providing tax revenue to the State and encouraging investment in oil and gas exploration.
As the time for questions has expired, we will proceed to matters on the Adjournment.
May Deputies ask one question?
We have gone over the allotted time.
The Leas-Cheann Comhairle could bank all the questions. Deputies will ask one question.
We have gone over our time. We must conclude by 4.45 p.m.
I know. I am attempting to encourage the Minister of State. Perhaps he will tell Members when the final report will be published? When is it expected that action will be taken to get the project off the ground and resolve all the outstanding difficulties? When can we show the world that we are capable of handling a natural resource in a manner that is acceptable to all involved?
The Minister of State should reply briefly.
The final safety review report has been received in the Department and will be published in the near future. A series of recommendations from the Department's Corrib pipeline technical advisory group on foot of the safety review have also been presented to the Minister. He will make the necessary decision, while taking these reports and recommendations fully into account. As Members are aware, Mr. Cassells was appointed as a mediator by the Minister and he continues to work in this capacity.
Written Answers follow Adjournment Debate.
