Vol. 652 No. 3
65 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the results and conclusions reached by the recently formed international forum on next generation networks; and the way he will progress the issue to promote the roll-out of next generation broadband. [14995/08]
My Department has prepared a draft policy paper on next generation broadband, NGB. It is intended that the paper will be finalised shortly and published for consultation. The paper will review current communications infrastructure policy and propose actions to promote the roll-out of NGB policy. In this context, it will address the optimum role for the Government in the planning and roll-out of next generation broadband.
In February 2008 I convened a meeting of the expert international advisory forum to examine the paper. The forum critiqued a draft of the NGB paper but its members supported the broad thrust of the document and have provided valuable feedback. They offered some additional recommendations and advice on the future trends of the telecommunications and ICT industries and proposed that certain suggestions be explored further. The draft paper is currently being updated to take account of the forum's contribution and to reflect interdepartmental consultation. This will be finished shortly and I intend to submit the paper to Government prior to publication. I am confident the published paper will set out a strong framework and accompanying actions to promote the roll-out of NGB. This will enable us to build on the excellent progress made recently in the roll-out of broadband generally.
Despite the repeated references of the Minister and his Department to the growth in penetration of broadband based on last year's figures, the reality is that Ireland continues to lag behind most European countries. The lack of urgency on the issue, particularly in comparison to the urgency accorded to other energy policy issues, has fuelled concern and speculation that the Minister is neglecting this element of his brief while doing a good job in other areas.
Does the Minister agree that an international forum was established on 27 February to offer advice on next generation broadband? He said at the time that he expected a paper to be published within weeks. However, today — months later — he still expects the paper to be produced within weeks. On 9 April, in response to a parliamentary question I tabled, he claimed the paper would be ready shortly, yet we are still waiting for it. While we are waiting, the OECD has confirmed that Ireland is falling further behind other European countries on next generation broadband. Can the Minister indicate a clear timeframe as to when the paper will be published and the length of the subsequent consultation period? When will we see a Government action plan along the lines of the plan proposed by Fine Gael several weeks ago on Private Members' business?
I do not under estimate the difficulties in this area. It is deeply frustrating that people cannot get broadband in parts of the country.
This is about next generation broadband, and bandwidth and speeds.
I was answering Deputy Coveney's question. He made a point about what we say on the issue of broadband. I recognise we need to go further in terms of closing the gap and acknowledge that we need to improve in certain areas, but the reality is that dramatic increases have been made. We have the fastest growing broadband take-up of any country in the OECD and we are probably the leading country in respect of mobile broadband take-up.
The Minister is double counting.
Both the difficulties and the opportunities should be recognised.
I am committed to this policy area and I am working around the clock to deliver on it, just as I am in any other area. I refute the suggestion that I am more interested in one area of my brief than in others. In fact, I see the clear connection in terms of delivering energy efficiency through digital technology. The development of next generation broadband is critical for a range of social and economic reasons.
In regard to the delay from 27 February, I intend publishing within a few weeks and no later than one month. However, I want to get it right and I was willing to spend time in the series of meetings we have held to discuss the feedback from the international advisory forum with the Departments of Finance, Education and Science and Transport, the State procurement agencies and other agencies involved in this area. That is one of the reasons for the slight delay. My intention is——
If the Minister would give way, I will allow him to conclude his comments after a brief supplementary question from Deputy Coveney.
Can the Minister tell us when the national industry steering group on next generation broadband access last met, given that it was set up by his Department to promote policy in this area?
One of the developments in this area was the presentation of a report by the Telecommunication and Internet Federation which has agreed broad principles from its perspective on where we need to go.
When did the steering group last meet?
That report was welcome for the crucial principles it agreed on the open access nature of broadband development.
Was it six months ago?
I intend to publish this document and then hold a one-day forum at which industry players, users of broadband and other Departments can discuss how to develop next generation broadband. The paper will set out specific actions which the State can take but it is not only about the State. The level of private sector investment is far more significant than anything coming from the State and is the key driver of progress in this area.
When did the steering group last meet?
As I pointed out to the Deputy earlier today in the Select Committee on Communications, Energy and Natural Resources, the international advisory forum was the main source of advice for this paper, not the steering group. However, I intend to open the paper to full consultation with the industry, users and other interested bodies to commence a process of evolving policy decisions.
66 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources if in view of his repeated statements on smart meters he will guarantee that the roll-out will start by mid-2008 as promised; when he envisages the completion of the programme for Government commitment to have smart meters installed in every home; and if he will make a statement on the matter. [15629/08]
The roll-out of a national smart meter programme is progressing in line with the commitments in the Government's energy policy framework and the programme for Government. The programme is a central component of our strategy to significantly enhance management of demand for electricity and achieve greater energy efficiency through the use of cutting-edge technology.
The delivery of smart metering requires a collective response. This is a technically complex and ambitious initiative. The steering group overseeing programme implementation is chaired by the Commission for Energy Regulation and includes representation from Sustainable Energy Ireland, ESB networks, ESB customer supply, independent suppliers and my Department. Four working groups which also report directly to the steering group are mandated to progress the complex technical aspects of smart metering, including tariffs, billing and data services, networks and customer behaviour.
The pilot phase, which will be the start of roll-out, is scheduled to get under way by mid-year. The objective remains to complete the national smart meter programme in five years. Under the ESB's new strategic framework to 2020, the national smart meter programme will be financed under the ESB networks' multi-annual investment programme.
Smart metering has the recognised potential to deliver a range of benefits including increased energy efficiency, better demand management, reduced emissions, the enabling of micro generation and distributed generation and improved customer service. A cost effective smart metering system will therefore deliver tangible benefits to all consumers of electricity.
Does the Minister accept that is a vague answer in terms of what will happen? The elaborate structure he described does not answer the question I asked regarding when roll-out will commence or be completed. I understand the total investment will be in the region of €600 million, so it is very important that the matter is addressed properly.
What exactly will be provided to individual households? What capability will be provided by what is being called a "smart meter" and how smart will it be? Is the Minister aware, for example, of the concerns that smart meters will benefit the electricity company more than customers in that its control could be extensive? Will he indicate whether there will be a facility in the smart meter to resell energy to the grid through micro-generation? What exactly will the smart meter provide? We have never heard the answer to this question. What difficulties does the Minister envisage given the concerns expressed by one particular union and the other concerns which I presume would be expressed in regard to the redundancies that would arise from the fact we would no longer, for example, need meter readers?
The delivery in mid-year will be in July-August and there will be 25,000 meters in the first test phase. It is proper to do this before going to every single house in the country. We need a significant sample such as this so we can test which technologies we want to use and what level of intervention or complexity we need to apply.
It is right and proper that those details are worked out in the organisational structure I have just set out involving the regulator, the supply companies, the Department and Sustainable Energy Ireland. My instinct and my direction to them is to be as extensive and elaborate as possible in what we are trying to do. It is not just a meter such as one would have on a wall, as I have in my own house, which tells the customer how much electricity is being used at the time, although that is useful and gives a clear indication of exactly how much electricity is being used when turning on and off devices. However, we need to go beyond that to have the option of variable pricing so the householder may have the benefit of saying: "I will allow people to switch off devices in my property on the basis that I get a lower tariff because I will not be using electricity at the most expensive peak time." This is an evolution I would like us to avail of because it is the peak electricity supply that is the most expensive in terms of emissions as well as cost for the customer.
The Deputy is correct that it also allows benefits to the supply company, which is not a bad thing. There is a clearly defined gain at present in that it gives the supply company much greater control so it knows where its electricity is going and there is much less opportunity for people to take unpaid electricity off the grid. I see no reason to restrict this as it benefits consumers in the end.
We have already seen a change in the regulations to allow micro-generators to supply electricity back to the grid and to sell it within the grid. Those regulatory changes occurred at the end of November when the Commission for Energy Regulation, CER, published a paper recognising a change. The smart metering programme will facilitate and further that development of micro-generation.
Midsummer is in June. Will the Minister be specific as to what, when and where? We are talking about a €10 million investment for this year alone. We have seen many examples, such as with e-government and e-voting, where a lot of money was invested for experimental purposes and proved pretty disastrous. What precisely will be provided through this scheme? Where will it be provided and, in terms of the overall roll-out, what timeframe are we talking about?
We are talking about mid-year. I will not tie people down to a particular date. Mid-year is satisfactory in terms of a timeline indication.
This is out for tender.
We are talking about 25,000 houses, the selection of which will be undertaken on a basis that gives a good statistical analysis of the country overall. It will be done by way of a test grouping which can be measured and which will have to reflect a range of different types of housing and different geographic circumstances. I have every confidence in the engineers in the ESB and other supply companies to deliver this. They are companies that have proven themselves——
What exactly are they delivering?
To a certain extent, the detail of what is actually delivered is something that will be gone through in the test process. I will not pre-empt the work that is ongoing with CER, ESB and others to decide which meters they use and which functions they have. That is something which is being undergone at present by the committee to which I referred. As electrical engineers, they are best placed to come back to us with a selected product and test it——
When will they do that?
It is an ongoing process of engagement on a range of different issues in terms of the meters, prices and the networks for which the customers pay.
We must move to the next question.
There is a complex product on which I am confident our best energy people are now delivering.
The Minister does not know.
67 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources if he will introduce legislation to set a time period for the complete phasing out of peat as a source of fuel for power generation by setting a clear date after which peat or turf will not be legally allowed to be used in power generation; and if he will introduce legislation to ensure that no new bogs are opened for commercial turf cutting. [14997/08]
Peat has been and remains an important element of Ireland's energy mix and still contributes significantly to security of supply by providing diversity in the fuel mix and as the primary indigenous fossil fuel resource in Ireland. It is, however, a declining resource and its overall contribution to the fuel mix for power generation will continue to progressively reduce over the next decade. Environmental sustainability is a key consideration in the continued production and utilisation of the peat resource.
Peat has been used for electricity generation since the 1950s. Its contribution peaked in the mid-1960s when it provided just under 40% of Ireland's total power generation. In 1980, it contributed 21% of the mix for power generation, while in 1995 this figure was 16%. It currently contributes approximately 7% of Ireland's electricity generation capacity.
Peat also contributes significantly to economic activity and the social fabric of the midlands region, with Bord na Móna providing employment for over 1,700 people, both full-time and seasonal, in 2006 and 2007. Bord na Móna owns approximately 7% of Ireland's peatlands and is the only company involved in the extraction of peat for electricity generation.
The current public service obligation order imposes an obligation on the ESB to have available electricity generated from indigenous peat at the generating stations in Shannonbridge, County Offaly, and Lanesborough, County Longford, up to 2019. It also imposes an obligation on the ESB to purchase electricity generated from indigenous peat at Bord na Móna's Edenderry power station up to 2015. Bord na Móna is working to progressively deliver 30% co-firing at its Edenderry power plant and is working with the ESB to assess the technical feasibility of a co-firing strategy at Shannonbridge and Lanesborough peat stations. Bord na Móna, with Government agreement, is to develop a portfolio of renewable energy, waste-to-energy and energy research and development projects as part of new strategic directions.
Reflecting the environmental significance of Ireland's bogs, Bord na Móna has developed policies and programmes aimed at protecting and restoring the peatlands in its ownership. Bord na Móna has already confirmed it will not acquire new peatlands for commercial development.
Additional information not given on the floor of the House
Bord na Móna is committed to preserving different bog types as well as areas of special natural beauty and significance. The company mitigates as far as possible the impact of its operations on wildlife habitats and rehabilitates its peatlands after use. To date, it has rehabilitated some 22% of its landholding. This includes the largest such programme undertaken to date in Europe, where 6,500 hectares have been successfully rehabilitated in north-west Mayo. It is also the case that commercial turf cutting on special areas of conservation and natural heritage areas is already prohibited under the EU habitats regulations and the Wildlife (Amendment) Act 2000.
In summary, therefore, the progressive reduction of the contribution of peat to power generation is ongoing as we work to re-balance Ireland's energy fuel mix towards renewable energy resources. At this point in time, peat still has an important contribution to make to security of supply. The Government is also very mindful of the continued important socio-economic contribution of the peat industry to the midlands region. A legislative ban on all peat extraction for electricity generation purposes would not be appropriate at this time. However, the long-term development of any energy supply source can only be ensured within the context of our meeting our overall greenhouse gas emission reduction targets.
I wish to clarify why I put down this question. The issue has raised concerns, particularly among certain employees in the midlands, and understandably so. What I want to ask the Minister is whether he would deem it appropriate to introduce legislation that would give leadership as to the timescale for a phasing out of peat as a fuel source in power stations over a medium to long-term period, which is already Bord na Móna policy, as we increase, over a period of time, the level of biomass and other power-generating fuels in the blend that is mixed with peat.
While peat is being phased out over a period of 15 to 20 years, we are also planning for the industries that need to follow peat production in the parts of the country that are hugely reliant on peat as a power source. This is the main reason I ask the Minister whether he intends to introduce legislation on the issue of opening new peat bogs — it makes environmental sense to continue to cut already opened peat bogs until they are finished — and also whether he intends to put legal certainty around when the phasing out of peat would be complete in power station generation.
Bord na Móna has already committed not to acquire new peatlands for commercial development. With regard to the medium to long-term use of the fuel, there are a number of constraints, one of which is our climate change targets. What we do in the energy area must ensure we meet, for this sector and as part of the overall national effort, our climate change targets. As the price of carbon increases, this will put certain constraints on heavy emissions fuels, regardless of what we do. The market systems will sometimes make it difficult for coal or peat plant to come into operation if carbon prices are set at a high level. We do not have control of that but it is a constraint. Any energy policy must bring us within the constraints of climate change.
There is another real constraint. In the substitution of peat in our power plants, we have an opportunity to develop a viable industry with the development of wood or other materials for burning in the peat plants. The difficulty in doing the detailed analysis of it is that even at a 30% replacement rate very large volumes of timber will be required which may divert timber supplies from other end uses for which they may be required. There is a constraint and in that it is difficult to know how we can completely replace peat in the existing power plants with a biomass substitute but it is something that makes sense because, first, it cuts our emissions and, second, it can develop a stable crop for farming. The two key constraints, therefore, are climate change and biomass alternative supplies but the company is making a clear commitment to move towards renewable energy products and renewable energy. To go back to what was said earlier about people who are experts——
I want to get in a brief supplementary. We are over time already.
——Bord na Móna is very good at logistics and management of land and that would provide it with real opportunities in terms of lower emission technologies.
The point of the question is whether the Minister intends to leave this issue to the market, essentially, and to Bord na Móna to bring about change in its own timeframe or whether he intends to introduce legislation to set that timeframe.
I do not have legislation planned in that regard. It is not completely down to the market. That is not what I said. Any energy policy decisions must be made on the basis of us meeting our climate change targets but also, looking at the broad energy security issues, three constraints must be taken into account: security of supply, cost and environment. There are constraints in that regard in terms of the alternative fuel supplies we can get to replace the peat and that is something we will take into account in a wide range of policy decisions.
68 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources if the current targets for bio-fuels still stand; if he will review these targets in view of growing concern regarding food prices and supplies worldwide; the percentage he estimates will be imported from developing countries in order to reach Ireland’s target on bio-fuels; and if he will make a statement on the matter. [15630/08]
Growing concerns are being expressed internationally about the consequences of increased global demand for bio-fuels for global food stocks as well as a range of sustainability concerns. Developments in European Union policy relating to bio-fuels must take account of these concerns and this is recognised by the Commission and all member states.
Ireland is currently working to deliver the target of 5.75% penetration of bio-fuels by 2010. The EU Commission's new renewable energy directive proposes a minimum mandatory target for all member states of 10% market penetration of bio-fuels in transport by 2020. The directive is currently under discussion with a view to Council agreement by end 2008. The Government is committed to existing targets, but they must be set in the context of a framework for robust sustainability criteria regarding production and deployment. The Commission has proposed such a framework in the new renewable energy directive.
The criteria proposed by the Commission aim to ensure that bio-fuels deployed by member states are produced in a sustainable way. They must not contribute towards the degradation of the natural environment, notably the destruction of forests, wetlands or long established grassland. The criteria will also set strict targets for bio-fuels in terms of the greenhouse gas emissions they must save before they can be considered eligible as counting towards national targets.
As things stand currently, the feed stocks used for bio-fuel production by member states are generally sourced on the open internationally traded commodities market with little or no information about their origins.
It is only by setting stringent sustainability criteria that member states will be able to verify the source of these fuels, and mitigate the cumulative effect of unsustainable practices. I fully support the Commission's work to ensure member states agree a rigorous sustainability framework under the new directive. Monitoring, verification and compliance will be critical to the effectiveness of the sustainability criteria. Moreover, these criteria will place a premium on more sustainable bio-fuels, further encouraging investment in second generation bio-fuels. These fuels, made from non-food crops, are much more productive in terms of fuel produced per hectare and do not have a direct effect on food prices.
My Department is also supporting the development of second generation bio-fuels through the Charles Parsons research awards announced last year.
I will shortly be launching the public consultation on the proposed bio-fuels obligation as set out in the programme for Government. In that context, EU developments on bio-fuels policy, in light of the emerging concerns in respect of sustainability, will be fully factored in and will be publicly debated. The recent introduction by the United Kingdom of a bio-fuels obligation will also be closely monitored by us for lessons to be learned.
I thank the Minister for that reply and look forward to the debate on the criteria because it is a matter of great concern. Targets have been set by the Government and by the EU. The EU Commission has stated it will not change those targets yet at the same time we are getting information from bodies as diverse as the International Monetary Fund and the World Bank stating the production of bio-fuels is responsible for approximately 30% of the problems relating to food prices, to Oxfam Ireland which is proposing that we change our targets. At the same time motorists who have invested in cars using bio-fuels are complaining they cannot easily access the fuels because it is difficult to get them on garage forecourts and the outlets are few and far between.
The Minister is saying we cannot say whether, in importing bio-fuels, we are participating in and encouraging the use of land in a destructive way that should be used for food production. Is he saying we are powerless when it comes to importing? It would be useful to know how much we currently import.
On the EU Presidency discussions, I am aware the Slovenian President set up a working group on this area and Ireland participates in that working group. What view are we expressing to our European colleagues? The Minister said we must have a debate but food shortages are happening now and it appears to me that from the point of view of policy the response is very vague in terms of the way the Government is addressing what is literally a burning issue.
We are being very precise in supporting the European Commission's proposals that sustainability monitoring be put in place on any bio-fuels bought or sold in the European Union. It is correct that under World Trade Organisation rules we cannot differentiate between bio-fuels from one country or another and we do not have full traceability in place to examine the origin of the supply. It is right for the European Commission to insist that we develop this system. We are far more effective in adopting such a system as part of the European Union than developing it ourselves. It is much more effective to do it as part of the Commission proposals.
The second point is that we develop bio-fuels which have a genuine emissions reduction because there is a question over certain bio-fuels where the extent of energy put into the product exceeds that which is taken out of it. Those two key developments in bio-fuel policy in the European Commission is something we support within the agreement that must be reached on the overall EU Commission policy by the end of this year.
How much do we import currently? I do not know if the Minister appreciates our concerns regarding the approach he adopts as a green Minister. When he talks about sustainability there is a concern about climate change and increasing CO2 emissions but this is a separate issue. This is a matter of world poverty and people being directly affected. That does not necessarily come within the term "sustainability". It must be guaranteed that that is part of the requirements.
I will come back to the details. I do not have the figures with me on the amount of bio-fuels. I agree that sustainability cannot be defined where it is leading to real food poverty across the world.
Why does the Minister not have the information? It is part of the question.
In Opposition in recent years I continually referred to concerns that existed about the development of bio-fuels in that it was not the panacea and that it would raise significant environmental and food price issues. I raised that issue on numerous occasions for several years before it started to evolve as a clear problem because we were aware of those sustainability issues. There is, however, a good policy reason for us to try to maintain a fuel supply source separate to the conventional oil supply source, particularly if it is one where we can lower emissions and it can be a second generation bio-fuel and we can benefit from non-food crops. That is a worthy ambition because if we suffered a serious oil shock similar to the 1970s when oil from the Middle East was cut off, it would benefit us to have even a 5% availability of fuel supply that would keep essential machinery running. For that strategic policy reason alone we should develop such a supply but we should be careful that it is not at the expense of the world poor.
Ceist 69.
Can I ask a brief question?
I am sorry, Deputy. We are two minutes over time.
I asked a question and the Minister did not answer it.
The Chair has no control over the nature of the answer given.
We continue to get such responses from this Minister.
I call Question No. 69 in ainm an Teachta Joe McHugh.
I will come back to the Deputy on the statistic. She has a valid point and I will ensure the statistic, if available, is provided.
I thank the Minister.
69 Deputy Joe McHugh asked the Minister for Communications, Energy and Natural Resources the number of MANs that do not have sufficient backhaul connection; the number of MANs that do not have sufficient last mile connection; and the initiatives he will take to maximise the usage of MANs to assist in the roll-out of next generation networks. [14998/08]
The provision of broadband services is, in the first instance, a matter for the private sector. Broadband service providers operate in a fully liberalised market, regulated, where appropriate, by the independent Commission for Communications Regulation, ComReg.
The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers. The widespread provision of broadband services continues to be a priority for the Government. In that regard my Department has undertaken initiatives to address the gaps in broadband coverage. These include grant aid under the group broadband scheme, the procurement of broadband services under the national broadband scheme to those remaining areas of the country without broadband and investment in metropolitan area networks, MANs.
By the middle of this year, local and regional authorities will have constructed high-speed, wholesale, fibre optic networks in more than 90 cities and towns under the MANs programme. Wholesale connectivity to international points of presence, also known as backhaul, is available to service providers using the MANs through the main backhaul providers, currently Eircom, BT Ireland and ESB Telecoms. All MANs have the option of connectivity to the Eircom backhaul network and a number of MANs also have additional backhaul connectivity to the other networks. Backhaul connections can be negotiated between the service provider and backhaul provider as required.
Service providers are using the fibre-optic MANs to allow last mile connectivity over a range of platforms, including fibre, wireless, mobile, digital subscriber line or DSL and cable.
A policy paper on next generation broadband is being finalised in my Department and will be published shortly for public consultation. The objective of the paper is to set out a framework for the development of next generation broadband in Ireland, including addressing the optimum role for Government in facilitating the delivery of new broadband services by the private sector. The deployment of State assets, including MANs, to assist the telecommunications sector move to next generation broadband will also be addressed in the context of the next generation broadband paper.
A value for money and policy review of phase 1 of the MANs programme is also being finalised and is due to be published shortly. Both the review and the policy paper on next generation broadband will guide the further development of broadband policy, including in the specific area of future investment in the MANs programme.
On a point of information, I did not quite catch the number of MANs programmes.
There are 90.
How many of the 90 are complete?
There are 90 due to be completed by the middle of this year.
We must be realistic about this argument concerning MANs and the overall deployment of broadband. MANs will eventually be a solution. I do not have the specifics today but many MANs have fibre optics underground and are not live. Some of them certainly do not have backhaul or backbone driving them. That is a serious issue and I require specifics on how many MANs are live.
When MANs become live, they will be a solution for our urban areas. How are we competing in light of international standards already set with respect to next generation broadband? For example, Singapore, Finland and Sweden have up to 50 megabit services in their broadband deployment solutions. How do we compete in terms of public policy intervention? There is public policy intervention in the UK and Ofcom has realised there must be public policy intervention.
I am somewhat disappointed the Minister noted in his preamble that broadband is a matter for the private sector. Broadband is not completely a matter for the private sector and the public sector is also relevant. If we do not have public sector policy intervention, we will never have broadband in rural areas.
I thank the Leas-Cheann Comhairle for his patience. Simply put, what confidence can the Minister instill into the Irish electorate, who are trying valiantly to get broadband in rural areas, that the new national broadband scheme which the Minister has massive confidence in will service rural areas? MANs are not the solution.
On a final note——
I will call the Deputy again.
The national broadband scheme is designed exactly to cover rural areas. We are currently tendering and the winning company will cover areas which are not currently covered. That is the purpose of the scheme and it is exactly what it is designed to do.
Going back to what Deputy Coveney stated, the provision of broadband completely across the country is a first step, not the conclusion. We must then leap forward and get next generation broadband, which is faster and has new characteristics. For example, there will be movement from one network to another, as a person may well be on a mobile network connecting to a fixed-line network.
In that context, the development of MANs has been very useful. It was an important investment in 2003, when 3,000 people were connected to broadband, to push the existing operators into the market to start delivering products. Eircom and the main cable companies, in particular, were not doing this.
The market will not deliver everything, but the experience internationally in those countries which are most successful is that competition between the likes of a cable company and a mainline provider delivers the quickest and cheapest products. Pushing the companies to compete with each other is a very good public policy to benefit the public approach. There are instances where it does not deliver and with such cases, we intervene with projects like the national broadband scheme. There will be others.
I will give an example that may make use of MANs in a very effective way. CMOD, the State body with responsibility for procurement of public service development, is engaging with every Department and State agency and telling them to use a number of different service providers when contracting for telecommunications and broadband services. This helps to generate the business case, particularly in smaller rural Irish towns so the services can be delivered to other businesses as well. The State is providing a lead by its own procurement policy to make the business case for people to connect to towns and MANs that might not otherwise be connected.
In the long run, MANs will be a good investment because we will need quality fibre optics. They provide this. I want to see all operators, including Eircom, using them in a very effective way to deliver new services.
In fairness to the Minister, he knows his subject area. Not unlike the Liverpool football team, which I follow, it is a good thing on paper. Much of the Minister's theory is very good on paper.
Getting down to the basics, we are discussing next generation broadband but we are in the business of playing catch-up with countries I mentioned, such as Finland, Sweden and Singapore. My fear and that of the public is that the company which wins the tender for the national broadband scheme will resort to using outdated broadband technologies to act as a solution for 100% coverage.
Is now not the time to ensure we are aiming for next generation broadband? The Minister referred to the technicalities, as it will be a new type of system. In what way is that stipulated within the tendering contract?
On the original question, of the 90 MANs, how many are live or running with backhaul?
I cannot, in the middle of a tendering process, go into the specific contract details because the issue is subject to a competitive tendering process. On a broad basis, we wish to be in a position where we can ramp up speeds. The number of MANs is currently approximately 60 or 65. It changes as many will have been opened in the first quarter or half of this year.
To apply a football metaphor on our work, unlike the poor defender last night, we will put our right foot on the ball rather than try to head the ball out of the goal. I am confident we can make a leap and not just play catch-up with broadband.
