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Dáil Éireann debate -
Wednesday, 14 Feb 2007

Vol. 631 No. 4

Priority Questions.

Telecommunications Services.

Bernard J. Durkan

Question:

72 Mr. Durkan asked the Minister for Communications, Marine and Natural Resources when there will be 100% availability of broadband throughout the country; the extent to which he expects the uptake to occur; the extent to which these targets compare to the development of broadband facilities in other European countries; if he has identified the issues that have impeded the development of broadband here; if he has directly or through the regulator set out measures to address the issues with particular reference to the needs of industry, the health services and the domestic sector; and if he will make a statement on the matter. [5723/07]

The provision of telecommunications services, including broadband, is a matter in the first instance for private sector companies operating in a fully liberalised market, regulated by the independent Commission for Communications Regulation, ComReg. The role of Government is to implement regulatory and infrastructure policies to facilitate the provision of affordable, high quality telecommunications services by competing private sector service providers.

The Communications Regulation (Amendment) Bill, which was published this month, is primarily designed to strengthen the regulatory framework for the electronic communications sector. The Bill will enable ComReg to achieve one of its primary functions, the promotion of competition, thereby leading to better and more competitively priced telecommunications services for consumers. This Bill is on the priority list of legislation for enactment by the Government during the current term of the Dáil. I expect to bring it before the House shortly.

The Government has also taken the initiative to address market failure through investment in the construction of the high speed, open access metropolitan area networks, MANs, while also grant aiding rural broadband projects under the group broadband scheme. However, despite Government and private investment in broadband, there are parts of the country where the private sector is unable to justify the commercial provision of broadband connectivity. It is planned to address the question of availability of broadband to the remaining 10%-15% via a new scheme which, when it is fully rolled out, will ensure that all reasonable requests for broadband from houses and premises in rural areas are met. A steering group comprising representatives of my Department and ComReg is finalising the outline of the scheme. This new scheme will supersede the group broadband scheme.

Is the Minister aware of the seriousness of the deficiency in broadband availability in many urban and rural areas? Is he aware that the lack of facilities is similar to the lack of telephone facilities in the late 1970s and early 1980s? It is impeding the development of the industrial sector, the health services, the education sector and the entire economy. How will the Minister, along with the private sector, address these deficiencies in the short term given the years of expectations? The public service obligation should have been able to deliver this service in a much shorter period than has been the case.

I am aware of the matters the Deputy raises. Parts of the country have poor broadband facilities. The Government initiated the MAN programme in 2002 and the group broadband scheme. It is now considering a new scheme to target 10%-15% of the country. Under its new management, Eircom has examined the matter and is willing to address some of the deficiencies.

There has been a massive increase in the number of subscribers to broadband, particularly in the past 12-18 months. In the past 12 months there has been an increase of 106% in take-up. In October 2004, I set a target of 400,000 broadband subscribers at the end of last year. The figure was exceeded in August 2006. At this stage, I expect that we have over 500,000 subscribers in Ireland. The percentage of households covered is over 11%, up from 3% at the start of 2005. The major increase in uptake is due to the greater availability, the demand side measures and the publicity given to the importance of broadband. We have not yet arrived, which is why we set up the national broadband scheme in conjunction with the private sector. We will announce tender details in the near future.

Has the Minister assessed the reasons for the delay in the provision of nationwide broadband? Is it due to failure on the part of the private sector or the Minister's or the regulator's lethargy? Will he address the issues that have caused this serious delay, such as investment, local loop unbundling, exchange enabling and the modern infrastructure required for a telecommunications service?

The reasons for the delay are obvious. Initially, the private sector did not invest. The dotcom collapse at the turn of the decade meant that there was little investment from the private sector. The Government decided in 2002 that it needed to stimulate the market. The private sector would respond that it is in the business of making money and should not be expected to provide broadband where it is not economic to do so. The Government addressed this through the group broadband scheme. The take-up of this was good in some areas but the scheme was not available in other areas.

The Deputy referred to the role of the regulator. He did everything in his power to make progress on number portability, local loop unbundling and other matters. He was thwarted at every attempt through the courts. Unofficially, I have heard that many of the difficulties with local loop unbundling are being addressed. If other difficulties arise, the Communications Regulation (Amendment) Bill will grant the regulator additional powers to deal with them. The Deputy has been supportive of the Bill.

Energy Resources.

James Breen

Question:

73 Mr. J. Breen asked the Minister for Communications, Marine and Natural Resources the steps he has taken in view of the fact that the cost of the fuel value of wheat and maize has risen dramatically since the Bush initiative to replace Ireland’s dependence on petrochemicals by developing and processing the bio-refining of lignocellulose feedstocks, which would give Ireland ample oil additives and platform chemicals and would have the knock-on effect of increasing domestic employment; and if he will make a statement on the matter. [5526/07]

My primary ministerial responsibility regarding bio-fuels is in the energy context and consequently in the production of bio-fuels to increase penetration in the transport sector. While I have no specific responsibility for the production of petrochemicals for industrial processes, I am aware that second generation biomass conversion technologies could, over time, provide a suitable fuel and product for both sectors.

I am giving major priority to the accelerated development of energy research, technology development and innovation to underpin energy policy goals, including bio-energy development and deployment. The development this year of a comprehensive Energy Research Strategy 2008-2013 overseen by the Irish Energy Research Council will set out the overall priorities.

The recently announced Charles Parsons awards included funding for biomass-related research. Under this programme, funding of almost €12 million is being provided to four universities on the island of Ireland for the purposes of accelerating research in several energy-related areas including biomass. This research will give us valuable information under Irish climatic conditions which will inform policy on the optimisation of land use for biomass purposes.

Sustainable Energy Ireland, SEI, is also supporting research work in second generation technologies through, for example, grant aid to an Irish university which is involved in an EU framework programme 6 project investigating the development of biomass-to-liquid, BTL. In BTL, biomass is converted to synthesis gas through gasification and the synthesis gas can be subsequently transformed to liquid fuel.

The emphasis on the production of ethanol in the bio-fuels mineral oil tax relief scheme II supports the building of expertise in ethanol production in Ireland. This could have long-term benefits for the production and blending of second generation bio-fuels which use similar but more complex technologies and processes. A total of 11 applications were received under the bioethanol category in the second mineral oil tax relief scheme and four of these were successful in being awarded excise relief up to 2010. This will allow for the production of 306 million litres of bioethanol up to 2010.

As a contracting party to the International Energy Agency, IEA, bioenergy implementing agreement, Ireland has signed up to participate in task 39, which deals with developments in liquid bio-fuels and particularly second generation technology. Ireland has also signed up as an observer to the new IEA bioenergy implementing agreement, task 42, which deals specifically with biorefineries. These international linkages position us well to monitor and benefit from international developments in this field and to identify appropriate applications for the Irish context.

I tabled this as a priority question to the Minister for Agriculture and Food because my premise was to make farming more viable. I cannot understand what this question has to do with the Department of Communications, Marine and Natural Resources. Will the Leas-Cheann Comhairle rule on whether I am in the right place to ask this question which was strictly directed at the Minister for Agriculture and Food? We cannot grow the crops to which I refer at sea; they must be grown on land. What does that have to do with this Department?

The question has been allocated to the Minister for Communications, Marine and Natural Resources. It is not within the remit of the Chair to interfere with that decision.

Can the Minister answer questions about the agricultural industry?

He knows everything about fishing.

Yes, he does, but I am being serious.

Give him a chance.

The Deputy should ask the question and we will see if I can answer it. That is the best thing to do.

He closed down the fishing industry.

Agriculture has been closed down as well.

It is wrong and I protest in the strongest possible terms that my question was not put to the Department to which I wanted it put, the Department of Agriculture and Food. The Bush initiative would increase the price of wheat by 40% which is good for the Irish farmer. Extracting ethanol from wheat and maize cannot be considered a feasible option because the price is too high. The Government was alerted some time ago to the possibility of building a sustainable industry with indigenous produce. That produce is the lignocelluloses feedstuffs to produce oil additives and platform chemicals that can replace our dependence on petrochemicals. It would revitalise our agriculture, bring people back to the land and provide employment in hub towns and cities. What has the Minister done about it? He can do nothing about it because the question should be answered by the Minister for Agriculture and Food. Does the Minister agree with me?

I would be happy to see the Minister for Agriculture and Food answering this question but responsibility for bio-fuels falls within the remit of the Minister for Communications, Marine and Natural Resources. In keeping with the Government's approach to joined-up thinking, the production of bio-fuels has a value for agriculture. The Minister for Agriculture and Food made announcements recently about start-up grants and grants for energy-related crops, all of which are designed to feed into a bio-fuels industry. If I understood the Deputy correctly, there is a link between the bio-fuels and farming. Growing energy crops such as miscanthus, willow and rape seed will offer a new source of income for farmers. The Government's policies on bio-fuels attempt to build up that industry, encourage farmers to change practices and sow particular crops for that industry.

Through the mineral oil tax relief scheme we have encouraged people to set up refineries to put the bio-fuels in place. The talk about bio-fuels may be positive from a farmer's point of view but not so from other people's point of view. If people must compete for wheat, maize, rape seed oil or sugar beet for bioethanol or other crops, there could be a danger that because it is attractive to produce bio-fuels from these crops, the amount of the crops used for food or feedstuff might be diminished or push the prices beyond the reach of farmers. There are advantages and disadvantages in this argument.

I estimate that this crop would yield a profit of €1,000 per hectare. That is a lot of money, especially in the west. Does the Minister agree that our over-dependence on foreign produce will cost us jobs in the long run? I have two letters from major companies in my area of County Clare to the effect that if the cost of energy does not come down, they will relocate to the countries from which they came. This is serious. We must have a viable farming community and stop the flight from the land. A total of 40% of our farmers are part-time. If we continue to let this happen and not provide an income for farmers, approximately 20% of the farming community will be in full-time farming by 2015.

I thank the Minister for answering the question but I still believe it was for the Minister for Agriculture and Food. Does the Minister agree that our over-dependence on foreign oils and fuels will put jobs at risk?

There is no question but that the cost of energy can pose dangers to Irish agriculture and industry. We have seen examples in this regard. I agree with the Deputy on that point. In general terms, however, there are advantages and disadvantages in all such activities. The move away from fossil fuels, which we must follow, allows us the opportunity to produce bio-fuels, which in turn allows farmers the opportunity in the future to grow crops they have not grown before. These crops can be grown in REPS areas and set aside and so on, providing an opportunity to earn an income. Hence, there is an opportunity for people to make an income and to halt the flight from the land to which the Deputy refers. In the future, and in keeping with what will happen everywhere else throughout the world, the number of people involved in agriculture here will probably diminish further as a result of the introduction of new methodology and much more streamlined food production.

Fish Quota.

John Perry

Question:

74 Mr. Perry asked the Minister for Communications, Marine and Natural Resources the reason the Government did not follow a similar option to that of Scottish authorities with regard to recent difficulties surrounding mackerel quotas; and if he will make a statement on the matter. [5523/07]

The opening of the mackerel fishery for the large RSW pelagic vessels was delayed until the negotiations with the EU Commission were completed and the details of the arrangements were agreed. The discussions dealt with how the 34,802 tonnes of mackerel reported as landed illegally into Scotland by Irish vessels in the 2001-04 period should be paid back. We successfully delivered payback arrangements that minimised the impact on the majority of fishermen who had little or nothing to do with the illegal fishing, set the reductions at reasonable levels and spread these over six years.

At national level, following careful consideration of all the issues involved and having received detailed legal advice from the Attorney General, I implemented a policy that those vessel owners reported as having landed the undeclared mackerel should bear responsibility for their actions. The opening of the fishery at the beginning of the year in advance of the EU negotiations being finalised could have compromised the implementation of this policy.

It is a matter for the Scottish authorities to implement the quota reductions being applied as they see fit. There is a significant difference in the situations. I am advised that the Scottish industry did not challenge the imposition of reductions in respect of large scale illegal landings into Scotland. Certain individuals here have put the Minister under legal notice that they may challenge the deduction of quota from their vessels.

The delay in the opening of the fishery is likely to have substantially benefited processors in Ireland. Mackerel is found in Norwegian waters at the beginning of the year and migrates south towards the waters off Ireland from mid to late January. The late opening has supported higher levels of landings into Ireland. To date this year, 82% of the mackerel landed has been into Ireland for processing here. Last year, when the fishery was opened from 1 of January, only 64% of the mackerel caught during January and February was landed into Ireland. The late opening is good for processors and is also helpful in maintaining jobs in Ireland.

I thank the Minister for his reply. Regarding the deferment of the opening, an allegation was made against owners of vessels of the pelagic fleet but clearly this was unproven. The latter had a considerable impact on a number of people. I am delighted that it did not prevail in Scotland.

In respect of the six-year arrangement, will the opening date regarding fishing by vessels of the pelagic fleet be 1 January from now on or will the date be deferred from next year? What role will the new agency play and what recommendations will the Government take on board in the future regarding the imposition of fines in respect of alleged incidents of over-fishing? Will the Government delegate responsibility to the new agency, the job of which is to supervise quotas and deal with any illegal activities that may occur. As regards such activities, I refer to those relating to allegations being made and cases being brought to court and not to those involving hearsay.

I accept that they may be sub judice but I wish to inquire about recent court proceedings. Are these linked to the incidents of over-fishing that had an impact on quite a number of the owners of vessels of the pelagic fleet who had no part in the alleged offences committed?

We inherited this problem. The Minister, Deputy Noel Dempsey, and I had an initial meeting with Commissioner Borg to discuss how the balance of the 34,000 tonnes of mackerel that were illegally landed would be dealt with. Our objectives were to minimise the impact of the quota reductions on the majority of fishermen who had little or nothing to do with illegal fishing, to set the reductions at a reasonable level — it is important to recognise that we secured a reduction of 9,000 tonnes on the original 34,000 tonnes — and to spread these over six years. I had a final meeting with Commissioner Borg on 18 January and he agreed to the six-year payback, the reduction of 9,000 tonnes on the original figure and backloading. The deduction for this year will be 3,686 tonnes. In each of the subsequent years it will be 4,178 tonnes. This will pay back the amount declared in respect of the incidents of over-fishing.

The court cases to which the Deputy refers will be subjected to the rigours of the court process. Neither the Minister nor I would interfere in that process. The cases must run their course through the courts and be dealt with accordingly.

We convinced the Commission to accept a deal based on the fact that we wanted to ensure that people who were not involved in illegal fishing would be able to earn a decent living for the next five to six years. The Commissioner and his committee recognised that and have accepted the proposals we put forward.

I welcome Dr. Noel Cawley's excellent report — this mirrors Fine Gael policy — on the future opportunities for coastal communities. How confident is the Minister of State that we can encourage more vessels to land fishing catches here for processing in order that sustainable jobs might be created in coastal communities? Will he comment on the restrictions relating to blue whiting, which were recently a matter of some discussion in County Donegal? Despite the apparent surplus of blue whiting off the coast, it appears that there has been a dramatic reduction in the tonnage relating to these fish.

As the Deputy is aware, Dr. Cawley has agreed to continue as chair of the implementation group.

That is a good development.

I welcome this because it gives the group a certain level of independence.

The delay in the commencement in mackerel fishing has, as already stated, ensured a substantial increased in the amount of this fish landed and processed in Ireland this year. This is good for the processors and for job creation, particularly in the north-west. We hope this will continue to be the case in the future.

The implementation of the report in question is a matter for us and Dr. Cawley to progress as quickly as possible.

What is the position on blue whiting?

I attended the negotiations that took place in Brussels at Christmas. The final meeting concluded at approximately 4 a.m. and we managed to secure the same quota for blue whiting for 2007 as that which obtained in 2006. This was despite the fact that practically every other country wanted to substantially reduce the level of Ireland's quota. We have the same quota this year as we had last year.

Does the Minister of State agree that there is a huge potential in respect of blue whiting?

There is always potential. However, the difficulty lies in securing additional quota. We were obliged to negotiate the best deal for Ireland. For the first time in ten years, we managed to secure substantial increases in respect of a number of species and we managed to retain the same quota for blue whiting as that which obtained in 2006. The latter was quite an achievement. I must acknowledge the contribution of the UK Minister who, at 4 a.m., decided to allocate some of his country's blue whiting quota to Ireland in order that we might retain it at the 2006 level.

Postal Services.

Thomas P. Broughan

Question:

75 Mr. Broughan asked the Minister for Communications, Marine and Natural Resources if he has had contacts with the Irish Postmasters Union; his views on the current conditions in terms non-automation for postmasters and postmistresses; if he has had discussions with An Post or the IPU regarding the decision of the postmasters and postmistresses not to handle the new financial services and packages facilitated by the joint venture with Fortis; his further views on whether the Fortis deal is in danger; if he will introduce a Green Paper on the national postal service network; and if he will make a statement on the matter. [5525/07]

Issues relating to the terms and conditions of postmasters and post office closures are, in the first instance, matters for the board and management of An Post and ones in which I have no statutory function. Despite this, I and some of my Cabinet colleagues have met representatives of the IPU on a number of recent occasions. I also addressed the IPU's annual conference in 2005 and 2006.

Last year, to facilitate and broaden the discussions between postmasters and An Post, I appointed Eamonn Ryan to examine issues of mutual concern and to propose a plan for their resolution. I, therefore, urge all parties to engage in negotiations in a positive manner with a view to reaching a mutually agreeable outcome.

The Government continues to be committed to the objective of securing and maintaining the largest economically sustainable post office network possible. This extends to the postmasters, whose financial security and strong relationship with customers are vital to the continued viability of the network.

Last September, Government approval was secured for An Post to enter a joint venture agreement with the Belgian bank, Fortis, to establish a retail banking business. Key to the Government approval of this joint venture was that it not only offers a real opportunity for the growth and development of An Post and the post office network but that it will, in time, greatly benefit the income streams of postmasters.

My Department and I receive regular updates on progress being made with the joint venture and have heard nothing to suggest the deal is in danger. An Post still expects the joint venture to launch its services in early 2007. I urge the IPU to reconsider the position it has taken in this regard, as the successful roll-out of the joint venture is of great importance to the future viability of the post office network and improving the welfare of postmasters by providing an alternative source of income. My Department and I, in the course of meetings with An Post, have also impressed upon the company the importance of engaging with the IPU on the joint venture.

I have no plans to publish a Green Paper on the post office network.

The remaining 1,300 postmasters and postmistresses have voted overwhelmingly not to engage with the Fortis project because of the dire circumstances in which they find themselves. Next Tuesday they, along with their families and supporters, will protest outside Leinster House at the Minister's management of the network for the past three years.

The Minister claims he has no plans to publish a Green Paper on the network. Why not? The British Government has launched three major postal network strategies in the past ten years to deal with some of the issues that have arisen there. Over the past several years, the Minister has acted as the undertaker for the postal network. In 2001, there were approximately 1,900 post offices when today there are barely over 1,300. Ten years ago it was twice the current figure. The Minister presides over a situation where a post office closes every ten days. The Minister's legacy of failure not just includes broadband roll-out and the demise of the fishing industry but also the demise of the post office network.

The Minister claims he has no responsibility for the salary conditions of postmasters. He must have responsibility when the majority of them earn less than the minimum wage of €17,900 per annum. Should any citizen have to live on less than the minimum wage? Up to 135 postmasters are earning less than €10,000 per annum. The Irish Farmers’ Journal recently highlighted the individual case of the postmistress in Lombardstown, County Cork, Catherine Healy-Byrne. Her smiling face has been behind the counter for the past years but she is quoted:

To fill the contract with An Post, I must provide a premises, light, heat and insurance and stay open 9 a.m. to 5.30 p.m., Monday to Friday, and 9 a.m. to 1 p.m. on Saturday. And for providing that service I get €16,500 a year and I have to pay everything after that.

I must point out to the Deputy, it is not in order to quote on such matters.

Is that not a disgraceful situation over which the Minister presides?

Some 400 post offices are still not automated. The Minister must know the fundamental role played by post offices in rural Ireland. As the Irish Farmers’ Journal stated in a recent article, the Minister has written the post mortem for rural Ireland in his failure to protect the post office network. Is it not time he produced a Green Paper on the network? He only came up with the energy Green Paper several months ago and the fishing Bill last year. With a few months left to an election, the post office network is disappearing. People are upset and will protest about it outside Leinster House next Tuesday but he has no answers. The Minister claims it is not his responsibility. It is his responsibility and he will be held responsible in 12 weeks time.

I remind Deputy Broughan that I am only in this portfolio for two and a half years. I am delighted he noted I produced an energy Green Paper and shortly will produce an energy White Paper.

And a fishing Green Paper last Sunday.

I met the targets I set on broadband roll-out. I have tackled the underlying problems in the fishing industry. It is a formidable record for two and a half years. The first 12 months of my ministry were spent advancing the causes adopted by the CWU and ensuring An Post reached agreement with it to ensure the survival of the postal service.

It was nice of the Irish Farmers’ Journal to highlight the plight of the rural postal network. Many of its readers will also be aware that many creameries and other facilities and employment in rural areas have closed. I did not notice the Irish Farmers’ Journal highlight these closures.

I am sure the IPU did not put a non-participation clause in the talks with An Post when it proposed the Fortis deal to its 1,300 members.

What about the passports and the money transfers? There was a package.

It is strange that a representative body, looking for extra remuneration for its members, would not negotiate on a deal that would do so. I do not understand that logic.

There are other services. It is only one of many.

The Fortis deal is the one area where the postmasters have the potential to gain extra remuneration. I cannot understand how a representative body which is demanding more remuneration for its members, breaks off negotiations when an offer, like that of Fortis, is made. Do all 1,300 members of the IPU realise what is happening? They should be aware of the possibility of getting some extra finance by concluding the negotiations on the Fortis deal.

I have a good working relationship with the IPU. I have been active in facilitating both sides in understanding each other's position. I appointed a facilitator, Mr. Eamonn Ryan, who produced an excellent report which will form the basis of negotiations. It is an illogical step to decide to march on the GPO and the Dáil and withdraw from talks that may give one's members extra remuneration.

That is because they are desperate. Some 600 post offices have closed.

I do not wish to be offensive to anybody but it seems illogical to me.

The post office network has one of the highest numbers of post offices per head of population in Europe.

The Minister has halved the number.

Even the IPU recognises that. There are 4.2 outlets per 10,000 inhabitants compared with the European Union average of 2.7.

That may have been the case in 1997 but the Minister needs to check the latest figures.

The 900 post offices that were automated are processing 97% of the business of An Post. Significant numbers among the 400 that are not automated are run by elderly postmasters who do not want them to be automated.

That is not correct. They want to automate their operations but were not allowed to do so.

If negotiations could be concluded and a reasonable severance deal secured, they would be more than interested in moving out.

That is the Minister's role.

The IPU acknowledges in its report that there is a limited number of post offices that will survive into the future.

What is the number?

We are trying to create——

What is the Minister's strategy? He has talked for a long time but will not give us a number.

I have not spoken as long as Deputy Broughan, who made a Second Stage speech and did not ask me one question.

We are asking now.

What does the Minister consider the optimum number that would be economically viable? What is his strategy for the post office network? Those are my questions. He is the Minister responsible for postal services.

Is the Deputy finished so that I can answer his question? My strategy is to ensure that An Post, through its board and management, oversees a strong, viable and sustainable post office network that is good for the postmasters and for the postal service. It is up to An Post to decide the appropriate level.

If the Government is re-elected there will be no post offices left.

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